Ever wondered how you can save the money you have been paying for your car insurance policy?
If you think that you were paying more than required then you can find out why the insurer was charging you more and what can you do to reduce it. That is why it is recommended to compare different car insurance plans from top insurers online. It helps you in finding a policy that fits within your budget. Third Party Car Insurance is mandatory in India and the premium is also slow. However, most of the people buy a comprehensive car insurance policy as it covers both personal and third-party damage.
Let’s see why you were paying an extra premium for your car insurance policy-
- Car Insurance Claims
Usually, people do not know that they lose their No-claim-discount for filing car insurance claims for every small damage. To maintain your No-claim-bonus you should try to keep your car insurance as a backup in case of huge financial losses. You can pay from your own pocket if the expenses incurred are small. It will help you cut down on the cost of your car insurance premium at the time of purchase or renewal. For instance, if you have purchased an HDFC car insurance policy and you have not filed a claim then you can avail NCB at the time of HDFC ERGO Car Insurance Renewal.
2. Type of Car insurance policy
Make sure that you carefully pick your car insurance policy. You should take into consideration the number of deductibles – a policy with higher deductibles means lesser car insurance premium. If you choose to opt for deductible then you can easily get a 10 or 15% discount on car insurance premium. Most of the car insurers provide car insurance calculator online. You can use an online calculator to know the premium.
If your car dealer is offering you roadside assistance then you don’t need to pay extra to buy it as an add-on in your car insurance policy. And if your health insurance policy offers you personal accident covers then also you don’t need to pay extra to get an additional personal accident cover in your car insurance policy.
Sometimes it becomes so confusing to choose from the various add-on covers that are offered. In that case, it is recommended that you understand your needs and requirements and select the one that offers you more protection. By opting for redundant you will end up paying extra premium only.
3. Maintain a good driving record
You might not know but you can significantly reduce your car insurance premium by maintaining a clean driving record without any traffic violations and traffic fines. People with erratic driving records generally end up paying an extra car insurance premium. A good driving record creates a positive impression on your insurer and also ensures your safety. Whereas, policyholders with a bad driving record are no less than a liability for the insurers.
Unsafe drivers are more likely to claim for damages and collision. In short, there are more chances of your car getting damaged due to your poor driving skills and it can prove to be a costly affair for the insurer.
You can always take up driving classes to improve your driving skills and remove the black points and fines from your driving record and maintain a cleaner driving record.
4. Credit history
One of the major factors affecting the cost of the car insurance premium is the credit history of the policyholders. In some countries, it is important to maintain a clean credit report but in India, this concept is slowly taking up. Once this concept is established, it is going to benefit the people with a good driving record the most.
5. Compare Car Insurance Premium
To grab some great discounts and deals you need to compare a few car insurance plans online before making the purchase. Simply search for car insurance plans online, get multiple options from top insurers in India. Or simply visit an insurance aggregator site and select a car insurance plan from different options.
This will help you find a plan that provides you optimal benefits against the premium paid.
6. Demographics
Another factor affecting the cost of the car insurance premium is the demographics such as gender, age, marital status and even accidental history of the insured driver/owner. The cost of the premium differs from one insurance company to another as every insurer has different parameters for demographics.
For example, a policyholder in his late 30s who has a driving experience of 10 years will be charged a lesser premium as compared to an amateur driver has recently issued the license. Demographics are also taken into consideration at the time of renewal. You can go for Bajaj Allianz car insurance renewal and check for discounts based on demographics.
7. Car Make and Model
Car insurance premium depends significantly on the car make and model. And the cost of the premium for expensive cars and high-end models is more as compared to the basic cars. The premium is more because the cost of parts is also more for expensive cars.
As sports cars impose risks due to high-speed functionality, and therefore the cost of the premium is also more. And the same applies to the modified cars.
Who doesn’t want to buy the best car that falls in the range? There are so many car models that are available with world-class interior and exterior features but the maintenance cost and the cost of insurance can make a hole in your pocket. In order to save on your car insurance premium make sure that you buy a car that meets your needs and requirements and you should be able to pay its insurance and the maintenance costs.
Wrapping it up!
So, if you are comparing different car insurance plans you will be able to save on your car insurance premium, coverage, deductibles, and other add-on covers. Once you have decided you can make the payment online. There are several online discounts that are available. This way you can save on your car insurance premium.
