covers your car against risks like theft, accident, explosion etc.
As per the rules in India, having car insurance is essential – even if it means a Policy for a small amount of premium. Car owners look for car insurance policies that have useful coverages, especially if they own a plush automobile. The comprehensive car insurance policy provides cover against damages due to unfortunate accidents or natural calamities and likewise eventualities. However, such policies also incur a high Premium rate as well. Thoughtful owners however, smoothly maintain their car insurance no Claim Bonus (NCB) so that they can reduce the premium amount of their car insurance, each time they renew it. At the same time, they also avail same coverages that are offered in an expensive insurance.
To keep NCB intact or up to a certain profitable limit, car owners must pick the right car insurance policy and also stake car insurance claims in a way that would not hurt their NCB in a big way.
When premium is affordable, it does not pinch the pocket when renewing the car insurance. However, with high premium, the cost escalates each year. If you have NCB, you can reduce this margin to about 25 percent each year – an amount which is quite profitable to the buyer.
So, apart from driving safely, you must also stake car insurance claims only when you cannot afford to pay for the damages from your own pocket. Not claiming for the minor damage can help you keep the NCB, and subsequently reduce your car insurance premium the next time you renew the car insurance.
Many car owners buy new cars after selling off the old one. If you have done something similar, you can transfer the car insurance of your previous car to the new car. This option is possible as car insurance policies are owned by the owner of the car and not attached to the car itself. By transferring the policy, you would be actually carrying forward the NCB to the new car and save a good amount of premium that is applicable to the new car.
Sometimes, adding small amount of premium to the policy or extending the existing car insurance can help you save NCB. For instance, if the damage needs to be claimed, you can do so through the small policy you bought for the car instead of tweaking the NCB of the existing policy. However, don’t forget to check the conditions of the policies you are buying as you need to be sure that your NCB is intact and that the additional car policy does not incur high premium too.
Online car insurance hubs, especially the one with an insurance comparison facility, often help to reduce the premium of a car insurance that one would incur when buying from an agent. Online purchase can be accomplished without the help of insurance agents and as such, the ancillary cost of brokers and paperwork is reduced. Moreover, owners can check out various car insurance policies and coverages offered by the same to pick the optimum insurance policy.