On every passing day, things are getting expensive. With the change in our lifestyle, we need to balance our income and expenditure to have a smooth and secure future. The prices of automobile, along with its maintenance costs have also gone up with changing times. To this if you add the insurance premiums which have also gone up significantly – it becomes an expensive affair for the middle class.
Early 2017, IRDA approved a hike in third party insurance premium by up to 40%. Under such circumstances, we need to act smartly and look carefully into those factors that affect car insurance premiums, which will eventually help us in getting a good deal.
Listed below are the various parameters, which will help in lowering your car insurance premium.
Avoid the extra frills – While we might be fascinated in adding some fancy fittings to our vehicle, remember that it adds up to a higher premium. Modifications in any form like ultrasonic sensors, LPT fittings actually lead to a higher premium. Therefore, to keep your insurance premium low one should avoid these extra frills and act accordingly.
Check out various options– It is always advisable to go through the websites of insurance companies as well as online insurance brokers, before you zero down to a particular policy. Compare the benefits and the quotes offered by the insurers. Besides being convenient, these channels also offer attractive rates and discounts to keep your premium lower. Don’t forget to read the fine prints of the insurance documents before signing on the dotted lines.
Decrease the value– On reduced usage of your vehicle in coming months, the IDV is reduced by around 10%. Since IDV and premiums are directly proportional, you end up paying less.
Transferable bonuses – In case if you have not claimed for your older vehicle, then on purchase of new car, the accumulated bonus can be transferred easily. Hence it is advisable to retain the insurance in your name even after selling your vehicle and apply for a no-claim certificate from the insurance company.
Avoid lapses - Policy lapse is a big ’No’. Renew your insurance in due time. In the event of policy lapses, the insurer generally disqualifies your discounts and the benefits that you are entitled to receive at the time of your policy renewal. You might also end up losing your NCB.
Profession of the insured - Some insurers offer discounts based on the profession of the insured. For example, an office goer generally uses the vehicle for daily commutation, whereas a sales person will rigorously use his vehicle for plying across the city. Insurance companies may consider one’s occupation type by while underwriting.
Safety features – Installing safety gears and anti-theft devices in your vehicle can reduce your premium by almost 2-5%. Features like airbags, anti-lock break etc of an approved make will lower the car insurance premium significantly.Further, members of associations like Automobile Association of India or the Western India Automobile Association and their affiliates, are entitled for special benefits and discounts on policy premiums.
Avail voluntary deductibles –
If possible, opt out of small claims or minor damages. A voluntary deductible discount is offered by insurance companies, which can go up to 35% of the premium. Opting for a higher deductible earns a handsome discount in your premium. You can save on the premium this way too.
It is advisable to be true to yourself while filling up details while availing a policy for your vehicle. Insurer carefully runs through your profile and then processes it. Every particular information about yourself is scanned properly, details such as your profession, vehicle usage, mileage of your vehicle etc are taken into account before issuance of policy. Also, any optimal usage of vehicle with less prone to damages can get you discounts on your premium.
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