Categorized | Car Insurance

how to reduce your car insurance premium?

Just bought a new car? Now, you need to buy the most important accessory for your car. Well it is a good car insurance policy, one that will suit your requirements and provide the best possible insurance cover. As per Motor Vehicle Insurance Act,  car insurance is mandatory to drive car on roads. Car insurance Policy covers your car against damage caused by accident, fire or any natural cause and theft. 

Now, before opting for a car insurance policy one is required to do a bit of research as to the extent of Coverage and the different Premium cost by different providers since it becomes a part of your compulsory expenditure. Every individual wishes to have minimal premium rates.

Here are some things to keep in mind which will definitely reduce your insurance premium.

1.Drive safely and maintain a good track record on roads. Your driving history plays a vital role in finalizing your future car insurance premiums.
 
2.Deductible or voluntary excess is that amount paid by an individual when making insurance claims and choosing to increase this amount will result in reduction of premium.

3.The best way to reduce your insurance premium would be to drive safely. Every company provides a no Claim Bonus (NCB) for every claim less year. The discount enables you to reduce your premium from 20-50% that commences from the second year onwards.

4.Remember that the greater the number of luxury gadgets you get fitted in your car the higher the premium cost and thus to minimize your premium install only those gadgets that you absolutely require.

5.Opting to go in for precautionary measures recognized by the Automotive Research Association of India such as antitheft devices, anti lock brakes, airbags and by becoming a registered member of automotive association you are eligible for a discount in premium.

6.Your premium depends on the Insured declared value which refers to the market value of your car. Declaring a lower IDV than the actual reduces your premium and though it does not affect your claim in case of Accident but it does in case of theft. So, it can work out negatively or positively. Thus, when declaring a lower IDV, make sure to take the maximum anti theft measures as possible.

7.Though it’s not commonly known the premium charged by company differs based on the profile of the owner. Different criteria such as fuel type, the usage frequency and the occupation and age of driver is used to evaluate Risk associated. Thus, voluntary declarations on these criteria and driving records can help you avail a discount of about 10%.

8.Last but not the least; choose a policy from online insurance portals since they are more likely to offer policies at low cost as compared to offline insurance sources.

A good car insurance policy is a must for every individual since it will prove beneficial in times of trouble. Thus, by keeping all the above mentioned criteria in your mind you can opt for the best insurance cover by paying the least insurance premium.