A lot of us have a long-standing dream of buying a car for the most part of our lives. But little do we realize that a decent chunk of your time can go into taking good care of your car post the purchase. Regular cleaning and maintenance is just one part of it. To keep your car secure from any incidents or accidents, buying a car insurance policy is imminent.
It is also mandated by the law to have a valid car insurance so that you can drive legally on the roads. As per the Motor Vehicles Act of 1988, you must have a third-party car insurance at the minimum. This ensures, that if a policyholder’s car meets with an accident, aftermath such as injury or damage to third-party property or individual is well taken care of.
If you wish to buy a car insurance policy, there are quite a few tips and tricks that you can use to save money on the same. Here is a list of the top 10:
#1 Go online
If you opt to buy car insurance online, you stand a chance to save substantially on your policy. Since insurers do not have to pay the intermediaries and other channels, you can benefit from the same.
#2 Select Policy Type
You can either buy a third-party car insurance or a comprehensive policy. The former offers less coverage and thus the premiums are low as well. A comprehensive plan, as the name suggests offers much more. If you are someone who doesn’t drive the car a lot or stay out of the city or country, for the most part, a third-party cover might be enough.
If you are interacting with an insurance agent for your car insurance policy or buying car insurance online, there are chances that they will pitch for add-ons. While add-ons are great to enhance the capabilities of a policy, you might not necessarily need one. Thus, you must do a quick assessment as to which all add-ons make sense for your purchase.
The insured declared value or IDV of a car plays a crucial role in deciding the premiums. Essentially, it is the approximate current market value of the car. If your car were to be stolen or damaged beyond repair, your insurer will pay the IDV to you. By changing the IDV, you can reduce the premiums. But one must be careful with not reducing the IDV too much, as it might also reduce the claim amount.
Policyholders who are renewing their policy can avail NCB i.e. no claims bonus. As the name suggests, the discount is only applicable if you haven’t claimed your policy in the previous term. It is applicable to the own damage component and can range from 20% to 50% depending upon the number of consecutive claim-free policy years.
#6 Security Devices
The ARAI or the Automotive Research Association of India recommends certain devices to be installed on vehicles to increase their security. If you install any of these anti-theft devices on your car, you may avail some discounts.
Another potent way of getting discounts on your vehicle insurance is to become a part of certain associations. The most prominent ones are Automobile Association of India (AAI) and Western India Automobile Association (WIAA). Being a part of these organization recognizes you as a safe driver and thus the discount.
#8 Loyalty Bonus
A loyalty bonus would only come into the picture if you have an existing policy and decide to continue with the insurer. You can call them up and ask for discounts given the fact that you are continuing with them for a longer period of time.
Deductibles are a component of car insurance policies which can help you save money on your premiums. A deductible is the bare minimum amount that you must pay during claims. If you opt for a higher deductible, it will help you reduce the premiums. However, it would also lower the claim amount.
#10 Quick Comparisons
A big advantage of buying a policy online is the ability to quickly compare various policies. Comparison gives you a lot of advantage. For starters, you can get quotes from different insurers for your car along with the features and benefits. In comparison, you will be able to find a policy that is good value for money. Meaning, you can buy a plan with a decent blend of coverage without paying a lot of money as premium.
If you haven’t already renewed your policy, you can use the above tips to save some money so that you can do more with it.