Knowledge Centre

How to Get Cheaper Car Insurance

Buying a Car is an important investment, buying car insurance for it helps you secure it for life. You do lot of research when buying a car, similar efforts needs to be put in when buying a insurance cover for it. Buying a Car Insurance not only secures your vehicle but is also a mandatory requirement under Motor Vehicles Act 1988.  According to Supreme Court Order, all cars bought after September 1, 2018 need to have a third party cover of 3 years duration and as per the recently passed Motor Vehicle (Amendment) Act 2019, a fine of Rs 2000 would be levied or you could face up to 3 months jail time on driving a uninsured car.

There are certain ways which helps in reduction of premium for the car insurance. Generally when buying car insurance, we often don’t take into criteria the fuel cost, repair expenses and maintenance cost, also if you are purchasing a luxury car or sports car the insurance cost would rise. Let’s discuss some of the measures to be taken to get a reduced premium for your car.

  • When you install safety components like brakes, anti lock system, air bags and anti theft system, you are increasing security features of your car. The car insurance has a positive view on such changes and therefore considering the additional security measures offer discount on the premium.

  • If you are have assets like bike, car, home then taking the insurance cover for them from one insurer could be a wise decision as the insurer could offer discount on the premium for them.

  • In the scenario where you are buying a new car and also selling the older one, you need to remember that you can carry forward the accumulated No Claim Bonus to the new car, No Claim Bonus is a discount that the insurance company offers making no claims during a year. The accumulated NCB can be in the range of 20 to 50%. Utilizing NCB can reduce the insurance premium for the new car.

Disadvantages of Buying Cheap Car Insurance

  • When you go on a vacation you take all the precautions, similarly when buying a car insurance you also need to ensure that you have adequate coverage so that you are able to insured your car against most of the risks.

  • Ignoring the benefits of Add-On coverage, there can be times when you need emergency roadside assistance or may have to forego accumulated No Claim Bonus as you have not opted for the Add-On.

  • A higher deductible may get you lower premium but in event of claim you would have share higher burden of claim amount as you have chosen a higher deductible.

A lower insurance coverage for the car may get us a lower premium amount but at the same time scope of risk covered would be lower. It is suggested that we opt for Comprehensive Insurance plan as not only it offers benefits of third party cover but also risks of damage from natural calamities and manmade events.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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