Tips to Reduce Car Insurance Premium
Car insurance policies in India are of two basic types, namely – Third-party liability insurances and comprehensive car insurances. Third-party liability insurances are meant for safeguarding the policyholder against expenses arising out of third party claims. As per the Motors Vehicle Act, having at least a third party motor insurance cover is mandatory in India, for car owners to legally ply their vehicles on public roads.
A comprehensive car insurance policy, on the other hand, comes with wide-ranging coverage and protects the policyholder holder against expenses related to vehicle damage, personal accident and also third party claims. Although a lot of policy buyers are inclined towards this plan, the comparatively higher premiums keep them from opting for this.
In many ways, comprehensive car insurance is the best plan for those who have a newly bought car and are predisposed to huge expenses, if an accident were to occur. However, there are ways that policy buyers can save money on their car insurance policy, prime among which are -
Compare Car Insurance Online
Comparing car insurances online is something that all car insurance policy buyers must undertake without fail. Comparing policies allows you to evaluate an assortment of plans, most of which you would have otherwise missed out on before you arrive at your final decision.
Insurance premiums generally differ with the difference in car insurance plans, and the extent of coverage they offer. Commonly a no-frills policy, one that has no added covers or extra features, is the cheapest.
Get Anti-Theft Devices
Anti-theft devices that are installed in your car protect it against probable cases of theft or robbery. This in return brings down your likelihood of making insurance claims (related to theft or robbery) in the future. Hence, insurance companies offer certain discounts to car owners who have anti-theft devices installed in their cars.
Now there are various anti-theft devices that you can choose to buy, such as anti-theft alarm, keyless lock device, steering wheel lock or electronic immobilizers. However, one thing that you need to check is that all these devices are approved by ARAI (Automobile Research Association of India).
Don’t Make Small Claims
One thing about car insurance policies is that they allow policyholders to maximize benefits in the form of NCBs (No Claim Bonus) for an insurance term, wherein they haven’t made any claims. These benefits are generally offered in the form of lower premiums and can be availed at the end of the policy year, during policy renewals.
However, to be eligible for a No Claim Bonus, you need to have a completely claim-free year. The best way to ascertain this is by not making claims for minor concerns or repairs.
Don’t Let Your Car Insurance Policy Lapse
Now while you are trying to lower down your car insurance premium, you must also pay attention to mistakes that lead to higher premiums. A significant one among such mistakes is not renewing insurance policies on time.
By forgetting to renew your car insurance plan and letting it lapse, you will not only have to purchase a new plan all over again but may also have to pay a penalty. Also, you become ineligible for a No Claim Bonus, despite having made no claims during the policy tenure.
These days, insurance companies send reminders to their policyholders regarding renewals of car insurance online so that their insurance plans do not lapse.
Understand How Deductibles Work
Deductibles refer to a fixed amount of money that policyholders are expected to pay to insurance companies, for the initiation of pay-outs for the claims they make. So, if your insurer outlines a certain amount as deductible, you will have to take care of that part of the claim, for the company to reimburse the remaining.
Now, as per insurance terms, the higher the amount of deductible you pay, the lower will be your car insurance premium.
Apart from the above, you can also cut down on your insurance premium by opting for only the required amount of coverage. Buying additional coverage or benefits will add to your premium. Also, prefer purchasing car insurance online as the premiums on offer are much more competitive.
**To understand exactly about the policy coverage, exclusions, etc read the Policy Wordings carefully.**