Knowledge Centre

How accidents impact your insurance premium ?

Published on June 22, 2020. EST READ TIME: 5 MIN

Making a claim after an accident will cause a dent in your insurance profile and in turn increase your premium. To make matters worse if you have made regular claims in the past,your risk factor increases manifold and so does the premium amount. It is simple,high risk is equivalent to a high insurance premium. But there are ways in which you can reduce your car insurance premium significantly,read on to know how:

  • Avoid making an accident claim if the damage can be rectified at a low cost,this will ensure your No Claim Bonus will not be impacted

  • Opt for the No Claim Bonus protect cover which is an add-on cover that most insurers offer

  • Installing security systems certified by the Automotive Research Association of India (ARAI) can help lower your premium amount as well as ensure the safety of your car thereby reducing your chances of making a claim.

  • Choosing to add the voluntary deductible feature in your policy will also help reduce the premium. This feature enables you to decide on a percentage of costs you would bear in case of a claim while the rest will be borne by the insurer. This will reduce the premium by a margin but will also reduce the claim amount you get from the insurance provider. Hence it is not a feature advised by experts as it will increase your burden significantly despite the low premiums.

  • Last but not the least buying car insurance online can be cost effective as it gives you the benefit of discounts available.

Barring the above points,if you drive responsibly,keep your car in good shape and choose an insurance plan customized as per your needs,rest assured that increased premiums will be the least of your worries.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance,he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".


Awards & Recognition