When you buy a new car, one of the things that the dealership offers is car insurance. As per the law, your car should have minimum third-party car insurance to be driven on Indian roads. Car insurance can be really expensive depending on the car you own and the type of insurance you choose.
The car insurance policy you choose should be affordable yet enough to cover all your requirements. Buying a car itself is considered to be one of the major financial decisions, to top it up, it is never a good idea to be confused about buying the right car insurance and burden yourself with it. So here’s why we have given you top tips to follow.
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Check out these tips to save money on car insurance.
Compare policies – Every person you seek advice from will tell you that you need to compare policies from different insurance companies and it is absolutely correct. Start by comparing policies along with other factors like settlement ratio, reviews, and so on. While comparing policies you may also wish to look at the available payment options that come with the policy to ease your financial burden.
Decide the type of car insurance you need – Mainly there are 2 types of car insurance – Third-party car insurance and comprehensive car insurance. Third-party car insurance covers the car and property of the third party involved in an accident when you are liable to take care of the charges. However, comprehensive insurance covers your own car along with the property of the third party. Comprehensive car insurance offers better protection and is more expensive than third-party party insurance.
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Assess the requirement for add-ons – If you are looking to buy comprehensive car insurance you get a list of add-ons that you can buy to increase the protective layer. Every add-on has a purpose and it is chargeable. Assess which ones you really need and avoid buying add-ons that have no use. One of the most popular choices for a new car is the zero depreciation add-on. This ensures that after a few years when the car parts need to be replaced, the difference between the depreciated value of the parts and the invoice value of parts is borne by the insurer. If you do not have this add-on then the insurer is expected to pay the difference depending on the depreciation. Another way to incorporate this valuable add-on in your policy is to buy zero dep car insurance. This policy has the add-on included in the policy premium itself and you don’t need to buy it separately.
Try to get the no claim bonus – If you have had car insurance for a while and you haven’t claimed any amount yet, you are eligible for the no claim bonus. This bonus gives you a percentage of the assured sum that you can carry forward to the next year and your premium stays the same but the coverage increases.
Balance your deductibles and premiums – It is observed that if the premium is lower, then the deductibles will be higher. Deductibles are the amount the insured has to contribute along with the insurer in case of an accident. Lower premiums might help you save money on car insurance but higher deductibles can cost you when an accident takes place.
Also read: A Beginner’s Guide to Purchasing Car in India
Get an estimate from the agent – If you are confused about which insurance policy to buy and which add-ons to opt for, you can reach out to an agent and talk things through to understand how you can save more money.
Look for discounts – Companies often offer discounts in particular seasons and towards festivals. There are attractive discounts for first-time users of insurance companies too. These discounts can help you reduce the cost of car insurance considerably.
Shop online – A common mistake most car owners make is to accept the first car insurance that is presented to them by the dealership. If you go online and take a look at what is available you are likely to get a better deal. Shopping online also means you have the freedom to choose the company and policy of your choice. The settlement processes for insurance companies that you find online are much easier and uncomplicated.
Get insurance from day 1 – Getting car insurance from day 1 is crucial as it helps you stay on the right side of the law and you don’t end up paying a heavy fine for flouting the rules. Another reason is, accidents can happen at any time. And it is essential to be prepared in case of such circumstances. If you are driving your car and you have insurance but an accident occurs before the commencement date of insurance, your expenses will not be covered by the insurer.
Drive carefully – Saving money on car insurance is essential. However, you play a big role in the fluctuation of the premiums. If your number of claims is high, your premium automatically goes up. Driving carefully is one way of ensuring you are not putting lives in danger and saving the cost of deductibles and maintaining a clean record of insurance claims as well.
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Saving money on car insurance is important but not at the cost of safety and security. While buying car insurance, ensure you don’t get overcharged for anything.
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