Money Saving Tips for Car Owners

• Protect yourself with third party or comprehensive cover
• Use bumper to bumper policies to reduce your liability
• Enjoy facilities like zero depreciation and roadside assistance covers

Indian market for motor vehicles is diverse and there are a lot of potential buyers. India is a booming market for new products and companies because of the diverse culture. This is one of the reason why foreign companies want to invest in our country and expand their businesses. Buying a car in India is considered to be a dream as well as a necessity. It can be an entry level hatchback, sedan, SUV, or a premium hatchback. Purchasing a car is very convenient today than before. If you have a good CIBIL score and income, then getting a vehicle loan is very easy. Banks and Non-banking Financial Institutions (NBFCs) institutions process vehicle loan quickly. Nowadays, loan facility is offered online through the bank website as well as third-party websites who have partnered with banks and NBFCs, and can help you process your vehicle loan within a day.

Before you purchase a car, it is important to analyse your financial commitments monthly and yearly. The expense of a car does not just stop once you drive it out of the showroom, because this is when the actual expense begins. Few tips to keep in mind before buying a car:

• Analyse the reason for your purchase i.e. if you want to travel for work and other daily purposes, buy a car in the hatchback or sedan category. If you want to go on mountain drives, long-distance road trips, or have a big family, then opt for SUVs.
• Asses your monthly financial commitments, if you plan to purchase the car on loan. The monthly instalments of the car loan should not affect your regular commitments.
• Compare the features and benefits of different makes and models of cars, as it will help you get the best product.
• Depending on your usage, choose the fuel engine type.

Maintaining a car is a very expensive affair. The fuel charges are skyrocketing, and car servicing costs can be exorbitant. Here are few tips you can practice which will help you save money on car maintenance and car insurance:

Car insurance: Even if you compromise on your most favorite car accessory, this one is non-negotiable. A car insurance is a mandatory requirement as per the Motor Vehicles Act, 1988. If the car has been in an accident or a part of any mishap, then a car insurance policy will help you get through the expenses of the repair cost. The insurer will have network of garages across the country, so even if the car has a mechanical breakdown or any other damage, it can be repaired at the insurer’s network garage. Although the third-party policy is the minimum coverage required by law for every motor vehicle, it is recommended that you insure your car with a comprehensive car insurance policy. You can also get additional coverage for your car through the add-on optional covers like zero depreciation cover, roadside assistance cover, personal accident cover, engine protection cover, No Claim Bonus cover, etc. These top-up covers are available only on comprehensive policies, and they can be availed by paying extra premium in addition to the comprehensive policy.

Maintain good credit score: Many insurers consider your credit score as one of the deciding factors for the calculation of car insurance premium. If the CIBIL score or credit score is higher, which is above 750, you can avail the policy for a much lower rate than the person who has a lower credit score. So maintaining a good credit score can help you save money on car insurance premium.

Do not claim for small damages: Knowing when not to claim the insurance policy is very important. It is obvious that policyholders claim insurance for accidental damage, total loss, etc. and by doing this the NCB will become zero, unless it is a long-term policy. Accidental damage or total loss claims are done for big damages and therefore, the claim is necessary. Whereas, claiming for small damages like a dent, scratch, tinkering, etc. will also bring down the NCB percentage or will become zero. As mentioned earlier, repairs for such small damages can be paid personally as they are not expensive to repair. This will help you save your car insurance policy for bigger claims and you can utilise the NCB discount at the time of renewal.

Service your car regularly: It is highly important to service your car at regular intervals. For new cars, depending upon the engine capacity, usually the first service will be at 5,000 km, second at 10,000 km or 1 year, whichever is early. The third service and from there on, the service has to be done for every 10,000 km. The tyres have to be changed after every 40,000 km so that it provides better road grip and better performance. Regular oiling has to be done either when it is below the required level or for every 10,000 km. The coolants, air vents, wipers, water level, battery charge, etc. have to be checked properly while servicing so that the vehicle performs well and does not have any mechanical problem in the longer run. If the vehicle is serviced regularly, the value of the car will also be stable and the insurer may give discount for this as well.

Save on fuel: Driving a car is not just about accelerator, brake, and clutch. Driving a car is an art and only a few understand the mechanics of it. If you maintain the mileage by changing the gears at proper speeds and not braking suddenly, the mileage of the car will increase and in turn, the engine will utilise less fuel. Even on city roads, if you drive at a speed below 60 kmph, since you are not accelerating much, the fuel utilised is also less. So drive according to the road and not according to your mood, if you want to save fuel.

Drive responsibly: In Bengaluru, Chennai, Mumbai, Delhi, and other metropolitan cities, driving with utmost care and caution is very important. People are often seen violating traffic rules because they are in a hurry to reach their destination. Two-wheelers especially, maneuver the vehicle in small gaps and end up putting a dent or scratch on the bigger vehicles. Even though you may be driving properly, other vehicles may try to overtake you which may cause collision or accident causing damages to your car. So to be on the safe side, it is important that you concentrate while driving.

Do not use A/C always: Switching on A/C for too long while driving will bring down the mileage of the car at least by 25%. To provide cooling inside the vehicle, the A/C consumes more fuel and this can significantly impact the mileage and bring down the fuel level easily. A/C has to be used only for shorter periods, so you can save on fuel and maintain good mileage.

With the above-mentioned tips and tricks to save money on your car maintenance and car insurance, you can save few thousands on your car. If you are looking to buy a new car and car insurance, online is the best place to do so. Not only can you compare various models in your budget, but you can also check for various offers on car insurance by different insurance companies on either the company’s website or on any neutral third-party website, to make the right choice.