Cheapest Car Insurance having car insurance for sure provides you a cover against vehicle damage or injuries sustained to a third party. Driving with a third-party cover is legally binding, however, with a comprehensive insurance cover, you can get cover for your own damage. Considering the wrecked roads and harsh traffic conditions, it is essential that you get proper insurance cover for your car. When it comes to the cost of insurance, everyone must be looking for ways to reduce the premium. In this article, we are providing you with some helpful options that would help to reduce the car insurance premium or the cheapest car insurance in India.
- 1. Increase Deductible
- 2. Accumulate No Claim Bonus (NCB)
- 3. Transfer No Claim Bonus
- 4. Anti-Theft Devices
- 5. Compare Plans & Buy
- 6. Renew Policy Before Lapse
- 7. Membership of Automobile Association
- 8. Get Only the Required Coverage
- Some Other Facts that’ll impact your car insurance idea.
- How to calculate Car Insurance Premium?
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1. Increase Deductible
A deductible is an amount of money that you need to pay when you make a claim. At the time of buying or at the renewal of the policy, you need to choose the voluntary deductible amount.
If you choose a higher deductible value, your premium tends to decrease. The reason being, upon choosing a higher deductible amount, you have to pay a high amount towards the claim, and the insurance company will cover you for a lesser portion of the claim amount. There is less risk on the insurer’s side, so the premium levied will also be less.
Say, you have a claim of Rs 12,000 and your deductible is Rs 8,000. In this scenario, the insurance company will pay only Rs 4,000 out of the total claim amount. Your premium will also decrease to a specific percentage, as applicable under the policy.
It is advisable to increase the deductible to an extent, you can afford easily.
2. Accumulate No Claim Bonus (NCB)
If you don’t make any claim during a previous year or consecutive policy years, you become eligible to get the benefit of the No Claim Bonus. It is a reward offered by the insurance company for not making any claim. The NCB benefit is available on the premium component payable towards its own damage cover. This benefit is available in the form of premium discounts varying from 20% to 50%, depending on the duration for which you did not make the claim.
If, you get a comprehensive car insurance policy with a premium of Rs 17,000, out of which the premium for your own damage cover is Rs 13,000. In case, you did not make claim for two consecutive policy years, so you can get the NCB of 25%. With the NCB benefit, your premium will be reduced to Rs 13,750 and you save Rs 3,250 in premium due to the No Claim Bonus.
3. Transfer No Claim Bonus
If you are replacing your old car with a new one, don’t ever forget to transfer the No Claim Bonus. NCB is linked to the policyholder, not to the vehicle. So, on buying a new car, you can easily transfer the NCB benefits of your old car to a recently purchased car. You just need to inform the insurance company about the transfer of NCB and they will issue you an NCB certificate that will help you reduce the insurance premium on a new car. The NCB certificate remains valid for three years.
4. Anti-Theft Devices
Installing anti-theft devices secure your vehicle against probable theft and robbery. It obviously reduces the chances for claims, so the insurance company offers you a discount of 2.5 percent up to a maximum of Rs. 500. This discount is available on the Own Damage component of the annual premium amount.
When choosing the anti-theft device, make sure it is approved by the Automobile Research Association of India (ARAI). You can install anti-theft devices such as alarms, steering wheel locks, keyless lock devices, electronic immobilizers, vehicle tracking, etc.
5. Compare Plans & Buy
All insurance companies have started offering their plans online. When looking to buy the best car insurance policy, it is advisable to compare plan features and benefits online. The insurance comparison portals also provide you the flexibility to compare car insurance quotes online. So you can choose the cheapest car insurance that offers all the required coverage at low premiums.
Comparing and buying a plan online helps you save on the insurance premium.
6. Renew Policy Before Lapse
It is advisable to renew the policy before it lapses. In case, your car insurance has lapsed, you need to get fresh insurance that requires you to get your vehicle inspected again and there are chances that your premium may be increased. Not only this, with the lapse of a policy, you will also have to lose your accumulated NCB benefit.
If you are looking to reduce the insurance cost, it is recommended to renew the policy before it lapses.
7. Membership of Automobile Association
If you become a member of one of the registered automobile associations such as the Automobile Association of India, the insurance companies offer a discount on premiums. Having a member of the Automobile Association of India, you can get a 5% discount on your own damage premium, subject to a maximum of Rs. 200.
8. Get Only the Required Coverage
When buying new car insurance or renewing an existing one. It is recommended to choose the coverage that you need. Having unnecessary add-ons or additional covers will only increase the cost. There are several add ons that can be opted under a car insurance policy, such as Zero Depreciation Cover. Engine Protector Cover, Roadside assistance Cover, Key Replacement Cover, and many more.
You only need to choose the add ons that enhance the protection of your car. Choosing only the required cover under your policy will facilitate your way to reduce the premium.
Some Other Facts that’ll impact your car insurance idea.
Geographical Location – Well, geographical location is not a problem. The actual problem is the crime rate of that particular area. If the crime rate of that selective place is too high, in this situation insuring any car is like a risk for insurance companies, and might be they will refuse to do so. Crime like the theft of a car, accident, and rash driving. There is nothing wrong with this because we all know that it is logically correct and no one wants to take risks in certain situations.
Car Usage – Whether you will get cheap insurance or not, depends on the way you use your car. Whether or not you will get cheap insurance also depends on the way you use your car. Apart from this, the condition of your car can also prove to be helpful in getting a cheaper and better insurance option.
How to calculate Car Insurance Premium?
This is like a question for all of us because many of us do not even know how car insurance premium is calculated. While all of us should have this common information, we need some information to calculate car insurance premiums:
- Car Model Details
- Year of Manufacturing
- Make and Model of the car
With all these documents, we can calculate the premium of the car and with this, we will know about the liability of the car.
A car insurance policy provides cover for Third-Party Liabilities. And you can also obtain an Own Damage cover to secure your vehicle against probable perils. You can get the most affordable and cheap insurance for your car by following the key points mentioned in this article. It would be a prudent move to do a car insurance comparison and choose the Cheapest Car Insurance policy, which offers you the required coverage at a low premium.