A new vehicle brings comfort and convenience to you, but also brings some added responsibility of insurance and registration. The insurance is something that you need to decide upon while registration is managed by the dealer. Insurance. Moreover, there is no way you can bypass this requirement since the Motor Vehicles Act of 1988 lays down the requirement.
When you purchase a car insurance online, there are essentially two types of plans to choose from, a third-party cover or a comprehensive cover. While the former is the bare minimum you need to buy, a comprehensive plan is an optional upgrade. Third-party premiums are governed by the regulator, Insurance Regulatory and Development Authority of India (IRDA), and each year IRDAI makes revision to the premiums which often pushes up the car insurance prices. While not much can be done about these revisions for third-party plans, comprehensive plans can often witness a significant increase in the premium. You can visit the official website of IRDAI for further details.
This article mentions some lesser known ways on how you can lower the premium of your policy. Continue reading to know more.
Opting for a higher deductible
A nifty way to lower the premium of your insurance policy is to opt for a higher deductible. Each car insurance policy has a mandatory deductible as a part of its policy terms. However, apart from such compulsory requirement, you can also opt for a voluntary deductible. As the title suggests, it is optional in nature and over and above the mandatory deductible. Thus, you can choose to pay a higher expense at the time of claim by making use of the voluntary deductible facility. The inverse relationship between the voluntary deductible and its premium results in a higher amount that you need to pay at the time of claim and thus, needs to be balanced. * Standard T&C Apply
Avoiding minor repair costs
Car insurance companies pass on benefits in form of no-claim bonus or NCB to the holders of comprehensive policies who do not raise claims during a policy tenure. This results in lowering the premium of your policy. But when you make a claim for minor repairs, you end up forgoing this benefit in your next car insurance renewal. Moreover, you are required to pay for the deductibles depending as per the policy terms. Hence, you must avoid minor repairs that not only forego renewal benefits, but also require you to pay for the deductible component.
Transferring your no-claim bonus
The accumulated NCB can not only help to reduce the renewal premium, but also can be transferred. This transferability helps you take advantage of reducing your own-damage premium for your new vehicle too. Since the NCB benefits are linked to the policyholder maximum benefit can be sought. You can visit the official website of IRDAI for further details.
Installing security devices
Another useful but lesser known method to lower the premium is to instal security devices like an anti-theft device in your car. These devices not only help alarm about theft of your car, but also reduce the risk for an insurance company thus, resulting into a lowered premium. * All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply
These are some ways how you can reduce the burden of premium. A car insurance calculator is a handy tool that can help you estimate the impact of add-ons in your policy coverage on the premium. So, make use of one to keep you premium in check while you opt for a 360-degree coverage. Also remember that 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.