Knowledge Centre

Tips to Get Cheaper Car Insurance

Prevention is better than cure, is a proverb that almost all of us would have come across. And this proverb fits in perfectly for a car insurance policy. A car insurance policy, otherwise also known as vehicle insurance and motor insurance, is insurance for your car, cab or four-wheeler vehicle.

The main objective of car insurance is to offer you financial assistance in the time of need. The time of need over here refers to unknown and unforeseen incidents on the road, liabilities towards other individuals or properties involved in an accident with your vehicle.

Why Is Car Insurance Important?

A myriad of options to choose from and higher disposable income mean that buying a car is much easier now. However, Indian roads have a tendency to throw surprises at you, more than once. The lack of lane or traffic discipline and ever-increasing vehicles on the road simply increase the chances of an incident by several folds. Here are some prominent reasons why it is important to have a car insurance policy.

  • Damage Control

    Repairing your car can be an expensive affair, irrespective of whether you are at fault or the damages were caused by someone else’s mistake. With a car insurance policy, you no longer need to pay for the damage repairs from your pockets.

  • Mandatory Third-Party Liability

    The Motor Vehicle Act makes it mandatory for all vehicles to have a third-party liability policy at the minimum. This policy will safeguard you and your finances in the case of an accident which involves other individuals (pillion, driver, someone walking on the street, etc.) or properties.

  • Accident Cover

    The death of the car owner is the worst possible outcome of an accident. The personal accident cover of a car insurance policy will ensure that the insurance company pays the sum assured. This will financially aid the family of the insured.

How to Get Cheaper Car Insurance

The following methods can help you get a cheaper car insurance premium.

  • NCB

    The No Claims Bonus is another method to reduce your car insurance premium. For every year that you do not make any claims for your policy, you receive a small discount on the own damage component. The discount starts at 20% and can go up to 50%.

  • Install Anti-Theft Device

    The Automobile Research Association of India lists security devices that you can install in your car. These devices can enhance your car’s security and at the same time reduce the premium by 2.5%.

  • Compare Policies

All the insurance companies do not offer the same coverage and premiums for your car. When you compare, you will get to know the difference in premiums and coverage. Thus, allowing you to pick a plan that meets your requirements and fits into your budget at the same time.

Conclusion

Now that the number of cars on the road is increasing rapidly, chances of accidents and other incidents have increased. Therefore, having a car insurance policy has become more than important now-a-days. It will keep you financially protected and prepared for any unforeseen incident on the road.

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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