How to avail discounts on car insurance ?
Published on May 24, 2020. EST READ TIME: 5 MIN
In India, you cannot legally drive a car unless you have a valid car insurance policy. As per the Motor Vehicles Act, 1988, every vehicle owner in India should insure his vehicle with a third party car insurance cover to legally drive the vehicle on Indian roads. Driving without a valid car insurance policy is illegal and can land you in a huge legal as well as financial trouble. Apart from third party cover, another type of insurance cover, one can insure his car with is comprehensive car cover. A comprehensive car insurance policy insurers your car against damages caused to it as well as third party or property. However, since the premium for comprehensive car policy is higher than that of third party cover, many vehicle owners refrain from opting for this type of cover. And if you are one of those, then it is important you know about various ways by which you can avail discount on your car policy.
No claim bonus: For every claim free year, your insurer offers you reward of up to 50% on car insurance renewal premium. The reward starts from 20% in the first year and can go up to 50% for five consecutive claim free years. You can use the NCB at the time of car insurance renewal and reduce your out of pocket expense. However, it is important that you renew your car insurance policy within 90 days of the policy expiry as not doing so can make you miss out on the NCB. Also, in case you change or sell your car, then you can transfer the NCB by obtaining a NCB certificate from the insurer.
Avoid making claims for minor damages: Though you may think that you can always ask the insurance company to compensate you for minor damages claims. And even if the insurance company compensates you for minor claims, but in reality, you would be the one at the losing end as you would miss out on the no claim bonus as well. So to get the desired discount on the policy, ensure that you do not file claims for minor damages.
Drive safely: To ensure you get discount on car insurance policy, always practice safe driving. This way you can not only procure the NCB discount but the insurance company can offer you additional discount for being a safe driver. Do not cause any accident and always carry your driving license and car registration copy to be on a safer side.
Disclose the correct details: When buying a car insurance policy, ensure that you declare all the details correctly. This includes your age, profession, mileage, usage of car and others. Remember, few insurance companies offer discounts on the basis of gender and profession too.
Add-ons: You can extend the coverage of your car insurance policy by opting for add-ons such as zero depreciation, engine protection and others. However, it is necessary that you opt only for add-ons that you think are necessary. For instance, if you have a new car, then it is always advisable to opt for zero depreciation coverage as it offers you full compensation without considering the value of the depreciated parts. Similarly, when driving in monsoons, opting for engine protection cover is a good choice