How can you lessen your car insurance premium?
Important Measures To Lower Your Car Insurance Premiums
There are many insurance companies selling car insurance in India. While most of them promise the maximum coverage at the lowest possible rates, car insurance prices do not vary much across various insurers. However, despite the nominal variations in premium amounts charged by the car insurance companies in India, there are ways to reduce your premiums even further. These include:
- Raise your voluntary deductible: Your car insurance premium depends on the amount of claim you have chosen. But some companies allow their clients the benefit of choosing voluntary deductible before premium determination. Voluntary deductible is the percentage of the claim amount that you agree to pay towards the repair of your car or before making any claims on the policy. Choosing a higher voluntary deductible implies that the company charges a lower premium by the same amount.
- Choose the coverage that you need: Bigger need not always be better. This stands true for your cover amount too. The best car insurance policy is the one that offers maximum benefits. But, it does not imply that you must opt for all the benefits given. It serves to choose the coverage amount wisely. Opt for an amount that you will claim in the long run. Do not pay for benefits that you do not need or can afford to pay yourself.
- Compare car insurance online: The internet has made it possible for insurance companies and insurance web aggregators to share important details like price, features, benefits, etc on the web. This means that customers today have better access to details as and when required to buy any kind of vehicle insurance including car insurance. Buying car insurance online ensures that you choose among the different car insurance premium quotes that are in sync with your need and budget. Moreover, online buying is cheaper than the conventional method of buying car insurance, which explains cheaper premium rates.
- Refrain from making small claims: Do not make claims for repairs of small scratches or dents that you can pay yourself. Abstaining from making any claim for consecutive years ensures that you avail the benefit of the no-claim bonus (NCB) that will lower your premium amount to half during your car policy renewal. If you can pay for the repairs without digging hard into your savings or affecting the cumulated NCB amount, then prefer not to make any trivial claims.
Declare the correct IDV of your car: Do not misinterpret the Insured Declared Value (IDV) of your car to be equal to its market value. The IDV is in fact, the value set by the insurance company and is calculated by deducting the depreciation amount from the original value of the car. The IDV is the maximum amount that your insurers would agree to pay in the event of any theft or complete car damage. Inflated amount of IDV implies higher premium charges. This explains why you must quote the correct amount of IDV in order to pay reduced premium charges.