The necessity of car insurance cannot be denied, first as a legal compliance and second to ensure protection against damages and accidents. Car insurance is available in two types, as third-party policy or comprehensive policy. A third-party policy is the one that is required to be purchased as bare minimum, however due to its limited coverage, it is not preferred by many. Thus, people tend to opt for a comprehensive plan that not only covers damages to their vehicle, but also extends the facility to customise coverage. But when you customise the coverage with these add-ons, it tends to increase the price. Here are some ways to keep your car insurance premiums in check –
Digital is the new way ahead. Offline purchase involves several intermediaries like branches, distributors, and agents thereby pushing up the costs. Thus, when you shop online, be it third party car insurance or comprehensive plans, the premiums are lower for the sole reason that there is direct dealing with the insurance company. Moreover, online policies can be compared using tools like car insurance calculator that not only help to select a policy, but also ensures you find one with necessary features within your budget.
Avoid raising claims for minor repairs
The most common reason that ends up increasing the premium is making claims for small repairs. It is general notion that your insurance must be utilised to pay for repairs to your vehicle. However, it needs to be decided based on the amount of expenses whether to raise a claim or manage such repair. Since comprehensive policies receive a no-claim bonus for not raising a claim during the policy tenure, it lowers the premium at time of car insurance renewal. So, if you make a claim for minor repairs, these benefits will not be available, and you will be required to pay the full amount of premium.
Transferring your NCB
If you are considering of changing your insurer for whatever reason, do not forget to transfer the no-claim benefits too. These no-claim benefits are attached to the policyholder and not the vehicle. Thus, even if you change your car, these benefits shall be available. 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 major reason for which the premiums go up. Since these changes can either be aesthetic or increasing the performance of your car, they increase the risk that the insurer needs to undertake. For instance, you repaint your car with an exquisite colour. Any damages to the body work will require your insurance company to pay for the repairs and thus increases the premium.
Installation of anti-theft devices
Anti-theft devices that are authorised by the Automobile Research Association of India (ARAI) help to lower your premiums. These devices include anti-theft alarm, steering lock, and many more. Making use of these devices not just enhance the safety level for your car, but also lower the risk for the insurance company in turn lowering your premiums.
Keep in mind these tips that can help you lower the insurance premium while having an adequate coverage against various events. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.