How to save money on Car Insurance tips [India]


In India, it is indispensable by law that everyone must have an insurance policy on their very own car. This car insurance policy works on “use it or loses it mechanism” means either you can use this policy with benefits by letting yourself to get some awareness about this or lose it without knowing any welfare behind this policy. It can safeguard your financial system when you are facing some unfortunate and unexpected events like accidents. Some people omit the importance of using a car insurance policy because of the cost behind it. There are some procedures that can help you in saving the best amount of money on car insurance premium.

To use it you have to pay a yearly premium. The cost of each and every policy differs rely upon different components like make and model of the car, driving record, location, etc.

Here are some useful ways that can help you to reduce your premium without making a major compromise on your policy.

Making higher deductible

higher deductible

 

  • A deductible is an amount that must be paid by the policyholder before the insurance stats to pay.
  • One can select the value of voluntary deductible. If it is a higher deductible, then the cost of the premium decreases.
  • There should be a consideration about how much you can afford for the deductible and ensure it to pay while making a claim.
  • There are many insurance providers who offer discounts to dutiful customers.  So It is advisable to start to ensure from a single insurer if you are having numerous vehicles to insure.

No Claim Bonus

no claim bonus

 

  • No Claim Bonus(NCB) is a reward to the vehicle owner for judicious use of the vehicle.
  • After the policy develops, be ready to sure that you are claiming your No Claim Bonus as it could decrease the premium amount up to 50% at the end of the years.
  • We can relocate NCBs. So there is no need to worry about whether the insurer is the same or not.
  • If someone is eligible for getting this NCB, it should be claimed before the policy maturation period overs.

Comparing Various Policies

  • Try to shop around since the price differs from provider to provider.
  • Most insurance companies are having their own websites for the customers to get benefited by their facility of insurance policy renewal.
  • Collect quotes from various providers online to compare it with one another.
  • Search for the features like the financial strength of the insurer, goodwill, claim settlement ratio etc while comparing different policies.
  • While buying a new car, check for the amount of the insurance because premiums are mostly staunch by the cost of the car and cost to repair it, safety record.

Transferring your NCB

  • Don’t forget to transfer your NCB if you are in the decision to buy a new car by selling the old one.
  • Inform insurance company about your idea of transferring NCB.
  • The certificate given by them will help you with the transfer.
  • This NCB will be reserved for three years, that is the period within which NCB can be transferred.

Aware of Vehicle Value

car value

  • The owner of the car should know the value of his car that will help him to rescue a lot of money on his premium.
  • By knowing the current value of the car, the owner can compare it to the market value at the time of renewal of policy and this could help him to find the devalue of that car and makes him discuss with the insurance company about the selected insurance policy.

Proclaiming perfect IDV

  • Insured Declared Value(IDV), is the current market value of the car that will be paid by the insurers in the event of theft or complete devastation of the car.
  • If the owner of the car values his IDV befittingly, the owner can get a reduced premium.
  • Registering low value of IDV can make you get low amount at the time 0of claiming.
  • Declaring the perfect IDV can assure to get rightful claim and helps in making perfect premium.

Being a Member of AAI or WIAA

  1. Automobile Association of India and Western India Automobile Association, both authorized by the Motor Vehicles Act and Rules.
  2. It is possible to get a discount on the premium if you are a member of these associations.
  3. The drivers who were the members of this association are considered to be safe drivers and that will allow them to have a good discount.

Be aware of Required Documents

  • Go through the features that are recommended in the fine print of insurance policy.
  • Try to grasp all the terms and conditions given in that document in detail.
  • You can be known for all the features you want to add or don’t need. It will help you to get benefits what you want at a justified price.

Adding Perfect Personal Details

  1. The insurance company will go through all the details in your profile when you applied for it.
  2. They will have a concern about your policy with respect to your age, profession, the usage of the car, and the mileage you maintain.
  3. If they found a profile with optimal usage of the car and less likely to damage a car, they will offer you a discount on premium.
  4. Disclose all your information to the insurance company that will fetch you a discount.

Pay for Needs

  • An insurance policy will pay for the features that are useful things.
  • The invoice add-on in an insurance policy will not be that much useful.
  • Rejecting unuseful add-ons in a policy will make some reduction in your premium.

Anti-theft devices

Installing anti-theft devices in a car makes the insurance company to feel happy about your care and offers discount at least 5% on your premium. The reason behind this is, they can save on avoidable claims when they face lesser claims.

Renewing Policy

  • A renewing policy is beneficial before it lapses.
  • It is recommended that renew your policy minimum 45 days before it expires.
  • This can assure you that without any break you will get the benefits of coverage and can save you from a sharp increase in price that occurs later.

Preserving Good Credit History

  • Some of the insurance company examines the credit history of the policyholder to set the amount of premium.
  • Keeping a better credit history helps to lower the cost of the premium.
  • Having more than one credit card can be negative in premium policy.

Others Ways

Many insurance companies offer discounts for various reasons.

  1. You are eligible for various deals and discounts if you have a record of safe driving, less driving less than an average number of miles or taken driver’s education program.
  2. Maintaining safety features like airbags, anti-lock brakes, anti-theft devices installed alarm systems can bring down the premium to a great extent.

The above-discussed things will be helpful to make yourself known about the stuff behind saving money on car insurance. If you have any suggestion about this content, let us know by registering your comment below.

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