Unravelling Lesser-Known Tips and Tricks

 

New Delhi (India), August 21: Car insurance renders financial coverage to the policyholder against various risks, damages, and liabilities involved with a vehicle. It helps individuals and businesses cover potential costs resulting from accidents, theft, third-party liabilities, etc. 

According to the Motor Vehicles Act of India, vehicle owners are legally liable to purchase at least a third-party insurance plan for their vehicles to drive in a public space. Various insurance companies offer a wide range of car insurance plans by customising them according to the needs and budget goals of the vehicle owners.

You can include add-on benefits at an additional cost in your car insurance plans, which might disturb your monthly budget planning. The add-on options provide additional financial coverage to you and include zero-depreciation cover, engine protection cover, no-claim bonus protection cover, roadside assistance cover, daily allowance cover, key replacement cover and more.

Avoid paying additional premiums and learn how to save big on car insurance by unravelling lesser-known tips and tricks. But before that, let us understand the functioning of car insurance in India.

Why You Need Car Insurance

Securing your car with a good insurance policy is important for a variety of reasons. Here is why you need to insure your car: 

It is mandatory under law to at least have a third-party car insurance.

A comprehensive insurance policy provides you financial protection in cases of accidental damage to your car, theft of your car and injury to yourself in case of an accident.

By having a car insurance, you will not be burdened by the sudden and costly expenditure of repairing your car or paying the treatment bills in case of an accident.

Basic Functioning of Car Insurance in India

Car insurance aims to offer financial assistance for third-party liabilities and personal vehicle damages. However, the coverage and reimbursement depend on the purchased policy plan. A third-party insurance plan is a mandatory car insurance plan, but opting for a comprehensive car insurance plan will cover third-party liability and personal vehicle damages as well.

The first and foremost step is to research budget-friendly car insurance plans available in the market. The digital world offers vast information about insurance plans, procedures, premium details, etc. You can also place an enquiry online in case of any confusion. 

The insurance agent will explain the policy plans and render assistance with the paperwork. Read the policy papers thoroughly to understand coverage inclusions and exclusions. Insurance premiums can be paid annually, monthly, etc., as per the norms and policies of the insurance company.

In an unfortunate incident with the vehicle, the policyholder must inform the insurance company to initiate a claim procedure. The claim is assessed by analysing the submitted documents. The settlement amount is disbursed upon claim approval.

The policyholder must remember to renew their insurance plan to avoid legal complications and the expiry of the accumulated benefits.

Lesser-Known Tips and Tricks to Save Big on Your Car Insurance Plans

Saving big on car insurance premiums involves employing various strategies and a cautious approach. Here are some unravelled tips and tricks to help you save more on your car insurance costs.

Compare Policy Quotes – Don’t settle for the first option you find online or in the market. Research and get quotes from multiple insurance companies. Take referrals from your friends and family to strike a better deal. Online comparison tools can help you compare different policies and premiums.

Select Your Plan Wisely –  While comprehensive coverage offers extensive protection, if your vehicle is older or has a lower market value, you might consider opting for a more basic policy to save on premiums.

Bundle Policies –  Many insurance companies offer discounts if you combine your car insurance with other types of insurance, such as health, two-wheeler, etc., to avail of a multi-policy discount.

Zero Defaulter Record – Safe driving can be beneficial to strike lower insurance premium deals. A zero-defaulter record with no traffic violations and accidents can help you negotiate lower premiums.

Consider Higher Deductibles –  Increasing deductibles, the amount one pays out of pocket exclusively apart from the insurance benefits can lower your premium. However, one must be able to afford the higher deductible in case of a claim.

No Claim Bonus (NCB) – Policyholders can earn a No Claim Bonus (NCB) if no -claim is made during the policy validity, significantly reducing the premium amount during policy renewal. No Claim Bonus is applicable when you have not made any claim against your car insurance policy during the preceding year.

Install Safety Appliance – Equipping your vehicle with safety features such as anti-theft devices, airbags, and anti-lock brakes can lead to discounts on your premium.

Low-Mileage Benefits – Some insurance companies offer low-mileage benefits to their regular policyholders. Inquire about these discounts.

Defensive Driving Course – Completing a recognised defensive driving course can demonstrate your commitment to safe driving and might lead to lower premiums.

Good Credit Score – Some insurance companies use credit scores to determine premiums. CIBIL score is determined by your repayment patterns of the past loans and a high score could result in lower premium rates. 

Avoid Premium Car Models –  The car model affects your insurance premium. Generally, vehicles with lower theft rates and good safety ratings have low premium costs.

Timely Policy Renewal –  Avoid a coverage lapse, as insurance companies often offer better rates to policyholders with continuous coverage.

Special Discounts – Inquire about special discounts, such as membership benefits, government services, etc.

**Note – The availability of discounts and specific strategies can vary based on your location and the insurance provider.