How to get affordable Car Insurance after an accident?

Car insurance is for you to protect yourself and your family when you are driving on the roads. If you have just a basic insurance plan or complete coverage, all the benefits are to ensure that you have the best coverage for your car. Here in this article we discuss getting affordable car insurance after an accident. 

What is the cost of car insurance?

The cost of car insurance is different from every car and there are various factors such as choice of the insurance company, type of insurance coverage, condition of the car and other factors. You can save money on car insurance by analysing these factors. The average cost of car insurance depends on the value of the car and other factors.  

For example, if the value of the car is between AED 10,000 to AED 300,000 then the car insurance premium would be 3%. The cost of the cars which are less than AED 10,000 then the average rate is 3%. The cost of the cars which are more than AED 300,000 the average rate of insurance is around 2.75%.

According to the data from the American Automobile Association, the average cost of car insurance for new vehicles in the year 2020 was higher despite various reasons for the pandemic. As you budget for a new car, you should also budget for car insurance and allocate for each month so that it will not be a burden. Things that are within your control you can plan to control the expenses. These aspects include careful driving and reducing accidents.

Getting affordable car insurance after an accident

There are various ways in which you can save money on car insurance. As you know what is car insurance you may use these methods which will work for you. 

• Multi-car discounts

Get an insurance quotation from the insurance company and insure a vehicle. The insurance quote will be higher per vehicle. If you are getting insurance along with multiple drivers and multiple vehicles with the same company then the insurance company will provide you with good offers which will be a win-win situation for you and the insurance company. 

Find out about this with insurance companies, it is observed that insurance companies will put conditions such as multiple drivers getting insured should be at the location and related by blood or by marriage. Two people who are not related can also get a discount but they must own the vehicle jointly. Some insurance companies provide discounts if you take multiple insurances with the same company. 

• Attention while driving

Driving safely will save a lot of your money and also your life. The more cautious you are, the more accidents and penalties you can avoid. These events raise your insurance expenses. Some insurance companies offer safe driving discounts and everything depends on your driving history. Points are allocated to the drivers for the increase in violations and higher points will lead to higher risk. The higher the risk, the higher the insurance premium. 

• Defensive driving course

Drivers can reduce the number of penal points when they take the defensive driving course. There are some insurance companies which will provide discounts for those who take this course. Drivers will have a record on their license about the penal points, once they take this course on defensive driving, accident prevention and other courses they will be educated about safe driving methods. 

It is important to ask about the discount to the insurance company. The cost of the course is sufficient for getting savings on insurance. 

• Shop for the best car insurance

Do your research thoroughly and find out annual premium amounts from the different insurance companies. Consider shopping and finding quotes from the companies both online and offline methods. It is a sensible thing to know the market, therefore, every year find out the insurance quotes from different companies. 

Consider the creditworthiness of the insurance company and purchase the insurance. Cheap insurance does not always mean good, find out what is provided by the insurance company and decide wisely. 

• Mass Transit

The insurance company will start with a questionnaire and among all the questions you will be asked to enter the miles travelled per year. If your mass transit is more then the insurance company will charge you more as the vehicle wear and tear will increase. If the mass transit is less, then the vehicle insurance will also be less. Find out with the insurance company regarding miles travelled and the offers related to it. 

• Downsize your car 

Purchasing an SUV is exciting but getting insurance is expensive. On the other hand, insurance on the smaller cars is lesser. Before buying a new car, find out the insurance for the different cars. Based on your requirement, decide upon purchasing car insurance. 

• Choose deductibles

Choose the right deductibles for your car which the insurance company provides for you. Depending on the insurance policy the deductibles are provided to you. The higher the deductibles, the lower the insurance premium amount and vice versa. You can save a good amount of money when choosing the best deductibles for your car. 

• Credit score

A good credit score is a big factor in determining insurance costs. A driver who has a good credit score is provided with a considerable insurance premium. The underlying fact is that if you are responsible for your personal life you are less likely to file claims. This is the reason that insurance companies consider the credit rating and provide a considerable insurance premium. 

• Location

The change in car insurance premium depends on the location. It is not possible to move to a different location just because of insurance. However, if you are planning to move, then consider these factors that car insurance premiums differ from location to location. 

• Coverage review

Before you purchase the final policy, consider the types of inclusions in your insurance policy. Drop off some unwanted add ons if you are not availing them. If you are driving an old car then consider all the add-ons which you may require while for a new car then you can remove unwanted add-ons. 

Conclusion

Do good research when you are buying insurance, review your coverage, look out for discounts and offers, drop off unwanted coverage, and make the best use of online and offline facilities. Always remember, if your vehicle is involved in an accident then the insurance company would like to total the car. Drive safely consider various factors such as the age of the car, your driving history, location of your driving and other factors before purchasing car insurance. Once you keep all these in mind and plan, you can get affordable car insurance.