For most Indians, purchasing a car is a cherished dream. It is an achievement that you want to last for long. To make that happen, simply purchasing a car and ensuring timely maintenance may not be enough. With the rising number of vehicles on road, it is almost next to impossible to keep your car completely shielded from mishaps. While there is always a high probability of accidents when you are driving, your car is also exposed to natural perils such as floods and landslides among others, which can damage your car or result in a complete breakdown of the car’s engine. Either of these situations would call for extensive repairs, the cost of which is bound to pinch. Hence, to provide a safeguard from such unexpected expenses, it is advisable that you get an insurance cover for your car.
Benefits of having Car Insurance
Even a minor car accident can require a considerable amount of expense on repairs. Having a motor insurance policy will take care of such expenses.
- The insurance company will provide coverage in case the accident results in hospitalization, when you have a personal accident cover within your car insurance policy.
- The policy will also ensure that compensation is paid to the family, if a road accident results in the death of the insured or other named drivers in the policy.
Tips to Lower your Car Insurance Premium
One of the benefits offered by insurance companies to the customers comes in the form of discounts on the premium. Here are some tips that will guide you on how to lower your motor insurance premium:-
- Do your Research
The premium for car insurance will vary from one insurance provider to another. You can get quotes from different insurance providers and compare them before making a decision. You can also use the service of various insurance aggregators to compare the policies available in the market. Once you have shortlisted the insurance providers and plans, you can directly contact the company and clarify any doubts you have about their insurance plan. When comparing car insurance online, do not only focus on the price, as in many cases the price is relative to the service provided. Also, consider the features of the motor insurance plan and the stability of the insurance provider before arriving at a final decision.
- Refrain from making Small Claims
No Claim Bonus (NCB) is a discount on the premium, given when you don’t file any claim in the preceding year. In such a scenario, it keeps stacking up every year, and can go up to 50%. However, when a claim is made with the insurance provider, the No Claim Bonus (NCB) is reset. So, by making minor claims, you run the risk of losing out on the NCB. With the accumulation of NCB over the few years, you can get huge discount on insurance premiums. Every claim that you make is recorded in your name, and when you apply for car insurance the next time, this will be scrutinized by the insurer, and will be used as a factor in determining the premium charges.
- Opt for Higher Voluntary Deductibles
The deductible is an amount that has to be paid by you in case of a claim before the insurance company pays the rest. If you are confident about your driving skills, you can increase the amount of deductible and lower the overall premium charges on car insurance. A higher deductible means that the insurance provider has to pay less for accidents and other damages to the vehicle. Hence, the lower premium on the policy. But remain cautious when choosing deductibles; opt for a higher deductible only if you have full faith in your driving skills, and can afford to spend money to take care of the expenses.
Buying or renewing car insurance is not that difficult. Whether you are buying car insurance online or through the conventional channels, just make sure that you select the right car insurance, and be proactive about the discounts you can avail on your car insurance. The amount saved on the premium can help you take add-on covers like zero depreciation cover and road side assistance cover among others, which in turn helps make your car insurance cover well-rounded. Further, this can also be done when you go for car insurance renewal.