Buying a car is not only a landmark event in your life but also a subject of great pride. Consequently, cars have become an integral part of our daily life. We use it to commute to work or execute some daily chores. As you use your car to drive for vacations, short trips, etc, it has also become an instrument to spend quality time with your family and friends.
Hence, it is vital that you treat your car well and right. The very first step in that direction is to keep your car insurance policy up to date. Buying car insurance certainly involves a major expense, of course, depending on the type of plan you are buying.
Thus, it’s quite usual for one to speculate if they can save some money particularly when it comes to other additional costs like the insurance expenses. In the process of saving money on car insurance, make sure that you do not overlook the sight of the big picture by compromising your vehicle’s protection.
According to the official statistics, 4.5 lakh+ road accidents occur every year on the Indian roads. In addition to that, the cases of vehicle theft are also on the rise with approximately 2.5 lakh stolen vehicles every year, according to the latest data on vehicle theft from the National Crime Records Bureau. And what’s more shocking is that less than 25% of these vehicles have been recovered.
Therefore, while you would like to cut down the expenses that come with a car insurance policy, you would also want to keep your vehicle protected. Thus, what you really need is the right balance to have the right insurance cover for your cherished car while also and ensure that those recurring premiums do not get out of your hands.
In this blog, I’ll be discussing 5 simple steps by following which you can easily achieve that balance – save on the recessing car insurance premium and have the best protection for your vehicle.
- Compare Car Insurance Premium from Different Insurers
Today the providers of all general insurance companies offer online covers. Some insurers may also provide you with concessions on premiums based on the age, the profession of the insured and driving record. It is a great idea to compare different car insurance premiums offered by the top insurance providers and make an informed choice. This way you will be able to get the best policy for the price that doesn’t go hard on your finances.
- Use Your No Claim Bonus (NCB) Wisely
Do not make a claim after purchasing car insurance. This way you will be entitled to a No Claim Bonus (NCB) for every claim-free year. Although the actual NCB varies across insurers, for 5 consecutive claim-free years, it can go as high as 50% of the premium. You can use this percentage as a discount on your Own Damage (OD) premium at the time of policy renewal. Hence, it is a good idea to not claim for small damages or repairs to keep your ‘no-claim-bonus’ intact. If it’s not a major repair, you could pay out of your pocket and save a larger amount in the form of NCB when you renew your policy.
- Don’t Forget to Renew Your Policy on Time
Make sure that your car insurance policy does not lapse is the very basic rule to keep your insurance premium low. In the event of the contrary, not only will you need to go for a physical inspection of your car but it would also lead to an increase in its premium. In several cases, the No Claim Bonus is not applicable if the policy lapses. So, make sure that you always pay your insurance premiums on time to keep the policy continued.
- Use Voluntary Deductions
Evaluating how much voluntary deduction you can take is another effective way to reduce your car insurance premium. In case you do not know this already, a ‘voluntary deduction’ is referred to a part of a claim that the policyholder has to pay from his own pocket before raising it to the insurance provider.
It basically means that apart from the necessary deductions which you need to pay from your pocket for a claim, you can voluntarily add a small percentage to it. This might increase the money you spend on repairs in the event of an accident, but it will also help you to reduce the premium. It is advisable to compute quotes with the online car insurance premium calculator to settle on the impact of these variables on your final payable premium.
- Transfer Your Bonus
What most people fail to understand is the fact that car insurance is linked to the person who purchases it, not to the car itself. Now, this comes with a key advantage when you switch your car. Insurers allow you to transfer the accumulated NCB to your new car.
Consequently, this would help bring down the cost of insurance for your new car. So when you sell your old car, keep hold of the insurance in your name. This way you will be able to use the accumulated No Claim Bonus to lower the premium on the insurance of your new car.
- Safety Should Be Your Very First Priority
Last but not the least; you must make sure that you drive your vehicle safely to avoid possible accidents. In addition to that, making your vehicle safe can bring you premium concessions. Insurance companies offer such concessions if you install safety gadgets in your vehicle like anti-theft devices, anti-lock braking system (ABS), etc. Thus, to avoid paying an exorbitant insurance premium, drive safely, add safety features to your vehicle and don’t make small claims.
Some insurance companies provide with additional benefits to those who want to insure their cars. At GIBL.IN, the fastest growing insurance marketplace in India lets you instantly compare the top insurers in a few clicks of the mouse allowing you to customize your policy as per your requirements. It also gives you provides you with the option to include add-on covers, modify IDV and shows the calculated policy premium on-screen. This way you will have the flexibility to choose the right car insurance policy by keeping the premium low.
A good car insurance policy safeguards you against the monetary losses. It brings a sense of security when you are out on the roads. So, be careful in terms of choosing the right coverage for your car insurance policy and pay only for what you need. You can make use of one or all of the above-mentioned tips to avail the best car insurance policy for the lowest premium and save your hard-earned money. Also, keep in mind that insurance is the subject matter of solicitation. To know more in details about the policy features, benefits, limitations, exclusions, terms and conditions, etc, please read the policy wording/sales brochure carefully before making a purchase.