Why Is Insuring An Old Car Cheaper As Compared To A New Car?

Business

As your vehicle gets old, the cost to insure it might go down drastically. The lowered value of your car and the increasing depreciation of the parts are some of the main reasons behind it. Also, the spare parts of older cars come at a cheaper cost than those of newer car models. Therefore, replacing or repairing the spare parts of used cars proves to be more budget-friendly. However, you can make the car insurance premium for new cars cheaper by following these tips:

Install safety equipment 

Cars with safety devices are risk-free when it comes to thefts. Therefore, installing safety equipment or device in your car can help to lower the car insurance premium. 

Maintain your vehicle 

Clean vehicles regularly by self or through a car washing firm. Also, take it to a garage immediately for servicing if the engine or other parts are not functioning properly. Insurers tend to offer plans at a lower premium for vehicles that are maintained well. 

Avoid claiming for everything

No-Claim Bonus is provided for the policy tenure during which you don’t raise any claims.  To obtain the NCB benefits, you need to drive safely and avoid accidents. Also, avoid raising claims for smaller incidents and damages. 

Park your vehicle in a safe place to avoid the damages due to natural disasters. Build a garage with safety equipment and a locking system to avoid thefts. For each unclaimed year, you will be eligible for a discount. 

If you continue to maintain the NCB status for a few years consecutively, you will qualify for a higher discount. For example, the Bajaj Allianz car insurance policy offers a discount of up to 20% on the policy premium for the first year and a discount of up to 50% if you maintain the NCB status for 5 consecutive years. 

You might get car insurance at a cheaper cost for an old vehicle but it will also increase the out-of-pocket expenses. It is because the depreciation cost will increase and the insurer will provide less coverage in the case of total damage as well. To avoid these costs, you can follow these strategies:

Get zero depreciation cover 

The parts made from rubber, plastic, glass, and fiber are depreciable. Therefore, getting these parts repaired will increase your expenses even if you have four-wheeler insurance. To avoid the higher depreciation cost, you can subscribe to a nil depreciation cover. Also known as zero depreciation cover, this add-on cover will minimize the expenses needed to repair or replace the depreciable parts of your vehicle. 

You can get zero depreciation cover at a reasonable price with the Bajaj Allianz car insurance policy. Along with it, you can also subscribe to an engine protection cover, key replacement cover, and other types of add-on coves according to your needs. However, you must get only the add-on covers that are of utmost necessity for your vehicle as they tend to increase the insurance cost. 

Compare plans 

Going through multiple plans before buying a car insurance policy is necessary as it helps you to find four-wheeler insurance at a cheaper cost. You can research online to search for a four-wheeler insurance cover that offers multiple benefits at a nominal cost. 

Don’t compromise on services 

Irrespective of how cheap a car insurance policy is, you should also check whether it is effective to safeguard your financial interests. Services like cashless claims, roadside assistance, etc., and features such as personal accident cover, personal baggage cover, etc. are included in an ideal car insurance plan. With Bajaj Allianz car insurance plans, you can choose a four-wheeler insurance that is suitable according to your insurance needs, age, and condition of the vehicle. 

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Uneeb Khan

Uneeb Khan CEO at blogili.com. Have 3 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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