The necessity of car insurance cannot be denied, first as legal compliance and second to ensure protection against damages and accidents. Car insurance is available in two types: third-party and comprehensive policies. A third-party policy must be purchased as a bare minimum; however, due to its limited coverage, many do not prefer it. Thus, people tend to opt for a comprehensive plan covering damages to their vehicle and extending the facility to customize coverage. But when you customize the range with these add-ons, it increases the price. Here are some ways to keep your car insurance premiums in check –
Go digital
Digital is a new way ahead. The offline purchase involves several intermediaries like branches, distributors, and agents, thereby increasing costs. Thus, when you shop online, be it third-party car insurance or comprehensive plans, the premiums are lower because there is direct dealing with the insurance company. Moreover, online policies can be compared using tools like a car insurance calculator that helps select a procedure ando ensures you find one with the necessary features within your budget.
Avoid raising claims for minor repairs.
The most common reason for increasing the premium is making claims for minor repairs. It is a general notion that your insurance must be utilized to pay for repairs to your vehicle. However, it must be decided based on the expenses to raise a claim or manage such repair. Since comprehensive policies receive a no-claim bonus for not submitting a share during the policy tenure, it lowers the premium at the time of car insurance renewal. So, if you claim minor repairs, these benefits will not be available, and you will be required to pay the total premium.
Transferring your NCB
If you are considering changing your insurer, do not forget to transfer the no-claim benefits. These no-claim benefits are attached to the policyholder and not the vehicle. Thus, these benefits shall be available even if you change your car. Similarly, these benefits can also be transferred to a different insurer. All you need to do is obtain a No-Claim Bonus (NCB) transfer certificate from your former insurer to be shared with the new insurance company.
Stay wary of modifications.
Modifications are a significant reason for which the premiums go up. Since these changes can either be aesthetic or increase the performance of your car, they increase the risk that the insurer needs to undertake. For instance, you repaint your car with exquisite color. Any damages to the bodywork will require your insurance company to pay for the repairs and thus increase the premium.
Installation of anti-theft devices
Anti-theft devices authorized by the Automobile Research Association of India (ARAI) help lower your premiums. These devices include an anti-theft alarm, steering lock, and many more. Using these devices not only enhances your car’s safety level but also lowers the risk for the insurance company, reducing your premiums.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. These tips can help you lower the insurance premium while having adequate coverage against various events.
