5 Effective Ways To Reduce Your Car Insurance Premium
Since the Indian government made it mandatory to have third-party insurance cover for cars, the premium has increased exponentially for the minimum insurance cover. As per the law, you cannot drive your vehicle on Indian roads without third-party insurance. The premium gets more expensive if you choose a comprehensive insurance plan. There are several ways to get maximum benefits from your car insurance policy at a competitive price. Here are 5 effective ways to reduce your car insurance premium.
Compare before you buy or renew
When we buy a car, in most cases we prefer to go with the insurance company that the car dealer has suggested. The main reason is in case of an accident; it becomes easier to get support, which is not true. The process remains the same, even if you buy the insurance policy from another provider. Thus, it is better to compare the insurance plans of different companies before you purchase one.
At the time of renewal, you should check and compare the current offers and plans by different insurance companies to choose the best one. The best aspect of car insurance is that you can shift the policy at the time of renewal and keep the benefits like No Claim Bonus intact. In both cases, you should check the benefits and quotes that the insurance company is offering.
Nowadays, you can find most of the information on the company’s website or on web aggregators where you can check and compare plans from different companies. Also, these portals provide additional discounts as there are no middlemen or agents. If you are buying your car insurance from the same company for many years, it is better to check and compare the plans of other companies as they might offer better plans and options.
Please keep in mind that you should be aware of the dealers that offer free car insurance. Such policies provide minimal coverage only, and for every additional feature, you have to pay them.
Be wise with the Coverage
There are several aspects of a Car Insurance Policy that you may not need for your vehicle. Some companies allow you to customize the insurance plan as per your requirements. If you feel that one or more specific benefits mentioned in the policy do not apply to your car, you can remove them from the cover. By reducing the number of unnecessary benefits, you can save quite a lot on premiums.
Opt for deductibles
If you are an extremely safe driver or you have not applied for a claim in the past few years, it is wise to opt for deductibles or volunteer deduction. When you opt for zero deductibles, you have to pay a higher premium as you will get full coverage in case of an accident or theft. A deductible is an amount you promise to pay in case of an accident, and it generally covers minor damages to the car. By opting for the deductibles, you can reduce the premium cost substantially.
Pay for the small damages yourself
The main aim of getting car insurance indeed is to save you from any financial loss in case of an accident or theft. However, if the damage is minimal and you can afford to pay for it, do not file a claim. Small claims can give you relief from the bill, but you lose the long term advantage of NCB or No Claim Bonus. Most of the companies offer a 20% reduction in premium amount for the first renewal in case you do not file a claim. It increases every year and can give you a discount of up to 50%.
Calculate the cost of repair and see if it is lesser than the processing charges and NCB that you are going to accumulate over the years. If it seems wise to pay for the damage from your pocket after the calculations, do not file any claim.
Pay on time
Do not miss the premium at any cost. Any delay in payment will result in policy lapse, which will force you to start over the process of buying an insurance policy. In such cases, the cover that the insurance company will promise is going to be lesser than what you were getting. Also, the premium cost will be higher as NCB will lapse with the policy.
As per law, you are only obliged to buy a third-party car insurance policy. However, if you want to get cover for your car as well, you should go for a comprehensive plan. Always compare the benefits and offers provided by insurance companies at the time of purchasing a new policy or renewal. Make sure to consult the new insurance company about NCB transfer in case you are shifting your policy from one company to another. In the long run, by keeping a few tips in mind, you can save a substantial amount on premium.