Availing a lower premium for your car insurance
Car insurance is not a choice. It is a mandate under the Motor Vehicles Act that all cars need to have proper insurance in place before they can be driven on Indian roads. While car insurance is required by law, it does not mean that you cannot try and get a reduced premium for the policy you want to buy.
Factors that Determine the Premium for Vehicle Insurance
There are some basic factors that help determine the premium that you will be liable to pay to insure your vehicle. Some of these factors are the make, model, engine volume, and size of the car, the type of fuel used, your geographical location, the purpose of use – private or commercial, your age, the credit risk you carry, and finally, the type of coverage you wish to get. Taking all these into consideration and with some simple tips, you too should be able to get your car insured at a lower premium.
How to Avail Lower Premiums
Compare multiple quotes -
It is prudent that you compare multiple quotes from different insurance providers before choosing car insurance that gives value for money. Shopping around is a good way to begin your quest for an efficient insurance policy from a company that has lower premiums.
Maintain a clean claim record -
Fewer claims put in on previous insurance policies taken out in your name mean that you are a safe driver. With such a record, insurance companies will judge the credit risk to be lower and may offer you lower premiums.
When you are buying a car -
Small fuel-efficient cars come with lower premiums for car insurance policies as compared to muscle cars or luxury cars. Plus, if you buy a hybrid vehicle that uses alternative fuel, you can avail some additional discounts on the insurance premium.
Your credit rating
You will be surprised to know that many insurers look at the owner’s credit rating as well to fix the premium. So, your credit rating has another task, where improving it will benefit you with a lower car insurance premium.
Seek reasonable coverage
Be rational when deciding coverage instead of going in for all add-ons and features, many of which could be frivolous and unnecessary. Look for add-on covers you actually need and if you have an older car that has a very low market resale value, you may consider opting for third-party liability insurance instead of the comprehensive plans.
Install useful gadgets
It is wise to install some devices that insurance companies look for. An example is an anti-theft device that will reduce your credit risk and the company will be willing to offer you better premium options.
Think about the deductible
The deductible is set at the time of policy purchase. It refers to an amount of money that you will have to pay first in case of a claim before the insurance company disburses the remaining claim amount. If you opt for a higher deductible, you can get a lower premium but will end up paying more in case you put in a claim. So, think about the highest amount that you will be comfortable paying as a deductible and opt for it to lower the premium.
Use your NCB
For every claim-free year, the insured is offered a No Claim Bonus that can be used to reduce the premium. This NCB is given to the driver-owner and not the vehicle, so you can get it transferred to a new car or in case you change insurance providers. Just make sure that you do not let your policy lapse.
Purchase your policy online
Apart from the ability to compare multiple insurance plans, you can get some great discounts if you purchase your car insurance online. When selling policies online, the insurers have reduced overhead costs and there is no middleman to claim commission on a sale, and the insurer generally passes on these benefits to the customers in the form of lower premiums.
If you follow these simple tips, there is no reason to believe that you won’t be able to get some great deals and lower premiums for your car insurance policy.
