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How do I get the best deal on car insurance?

Car Insurance policy is a policy that you purchase for the protection of your car against damages from incidents that are uncertain. India with its burgeoning population and rising number of vehicle users has registered an increasing number of deaths due to road accidents with each passing year. Although you would count yourself as a responsible driver, one who follows all the traffic rules, still there are chances that you could get involved in an accident. It may be a case that you have parked your car at the right place, but when you come back, you find that the car is damaged.

Car Insurance is not just needed for the security of the car but is also needed as per the law. According to the Motor Vehicles Act 1988, it is mandatory that all the vehicles have motor insurance at all times. Even in the recently enacted Motor Vehicle Amendment Act 2019, huge stress has been laid on getting the vehicle insured and the fines levied have also been increased. You can also get personal accident cover for the owner driver in case he/she gets injured in an accident or succumbs to the injury, in which case the nominee would get the sum insured.

Comprehensive car insurance is the one that is suggested as it offers wider coverage against damages  caused to your own vehicle from natural calamities like cyclone, floods, lightning etc. , from man-made events like civil riots, arson etc. and also against theft and burglary. Third party insurance offers coverage against claims by the third party for any damage to their vehicle, property or any bodily injury but does not cover damages to your own vehicle.

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9 Ways to get the best car insurance deal

Let’s discuss some of the ways you can get a good car insurance proposition, however one should note that car insurance premium is not the only factor that should be considered, other factors like the customer service, number of network garages and the add-on covers available are equally important.

  • Installation of GPS device with a viewing facility at the insurer’s side would help you get reward points for your good driving behavior. These reward points can be used at the time of your car insurance renewal.

  • Avoid any kind of unnecessary additional fittings, the fittings that do not come across as factory fitted attract a higher premium.

  • When you do not make a claim during a year, you are eligible for a no claim bonus in the subsequent car insurance renewal. You can get upto 30% to 50% reduction in premium, if you have not made a claim for 3 to 5 years.

  • You can opt for the no claim bonus protector, this add-on will help in protecting your no claim bonus in case you make a claim during the policy period.

  • You can opt for higher voluntary deductible, this is the cost the policyholder would have to incur first in case of claim, following which the car insurer would pay the remaining amount. Higher deductible allows you to pay a lower premium as in case of claim you have to bear a higher cost. Although this might look like an attractive choice, but in reality you end up paying more in case of a claim.

  • The make and model of the car also has a bearing on the premium charged. Therefore choosing a car which has favorable make and model would help you in insuring it for a lower premium.

  • You should not allow your policy to lapse, in the event of your insurance policy getting lapsed, your car losses the insurance protection and any claim in this period is not covered by the insurance company, alsoyou could stand to lose any benefits and discounts you could have received at the time of renewing your policy.

  • Installation of safety devices and anti theft features like airbags, anti-lock brake reveals the steps you have taken to ensure the safety of your car, this can help you in getting a lower premium offer from the car insurance company.

  • If you are a member of the Automobile Association of India or Western India Automobile Association which are institutions empowered by Motor Vehicle Act rules, you could get a possible discount on the premium.

Conclusion

Owning and maintaining a car is a costly affair, you need to make sure that it has all the necessary protection in the right form of insurance coverage, choosing whether you should go for third party insurance cover or for a comprehensive car insurance plan that offers coverage against third party cla­­ims and also damage to your own vehicle.

Insurance premium is an important consideration when you go for a fresh car insurance policy purchase or you are renewing one but it cannot be the only factor, matching the benefits and the features of the plans with your insurance needs is an equally important factor like which kind of add-ons are given by the insurer and which are more suitable for your vehicle.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle.


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