There is a common myth that car insurance needs to be bought to comply with the law. That is one part of the story, but car insurance is not only meant to avoid hefty fines. It helps you to take care of the repair costs that otherwise can burn a hole in your pocket. If not that, it can be unexpected, and you might not be prepared for it.
The ones who purchase car insurance online
are aware of its benefits, but it might so happen that the premium might exceed their budget. While it may be a situation of compromise as to which coverage to drop, you need not always do that. This article has a few nifty tips that can help you avail concession on car insurance premiums.
Timely policy renewal
Procrastination is human nature. Things that do not require immediate attention are often pushed over to a later date or time. This sometimes might be okay, but not in the case of car insurance plans. Since the renewal of your car insurance online is simple, it is advisable you renew it before time. Delayed renewal has the effect of losing all the accrued policy benefits which will require you to purchase a fresh policy thereby costing more than your existing one.
Making use of No Claim Bonus
When you purchase comprehensive car insurance online, it comes with a No Claim Bonus. Here the insurance company offers a concession during car insurance renewal
for each year when no claims are made. The best way to avail this on car insurance is by driving safely. Ensuring safe driving practices will help you not only obey the law, but also save money on car insurance premiums. Further, these no-claim benefits go on increasing up to 50% for every consecutive claim-free policy renewal.
Setting the appropriate IDV
IDV or insured declared value is one term that is often misunderstood by new insurance buyers. The common interpretation is that IDV is the resale value of your car, the truth however is different. In fact, IDV is the approximate current valuation of your car. Setting the right IDV is crucial since it impacts the premium directly. The insurance company allows you to select the IDV value within a specified range depending on the age of your vehicle. Setting a higher IDV as a conservative approach will increase the cost of insurance premium whereas a lower amount will provide insufficient coverage.
Taking care of small repairs
Another way to avail concession on car insurance premium is to pay for the minor cost of repairs. Although a car insurance policy is there to safeguard you in times of accidents and damages, each claim requires you to pay a mandatory deductible. It is the minimum amount that you are required to pay from your own pocket at every claim stipulated by the regulator, IRDAI. Along with mandatory deductible, you also miss on the No Claim Bonus at renewal if you raise an insurance claim. This way, you can avail some of the best car insurance deals, knowing that your No Claim Bonus is intact.
Comparing before you purchase
Reiterated a countless number of times, comparison is the key to buying anything and it is true even in case of a car insurance plan. Comparing the available plans will help you avail some of the best car insurance deals, both in term of value and in coverage. While it may seem an arduous task, tools like car insurance calculator
help you simplify it. You can either select the available plans and run a comparison or even select policies from different insurance companies.
Buying the right car insurance cover
One of the most effective ways to save premium is to opt for the right car insurance coverage. Since there are two types of insurance plans you can buy, third-party and comprehensive, it is for you to decide which one based on your requirements. For a car that is very rarely driven, a third-party policy can suffice, whereas a new car driven frequently should be insured using a comprehensive car insurance policy. This way, you end up saving not only on the premium but also avoid unnecessary policy purchase.
Lastly, remember to thoroughly read the terms and condition of your insurance policy. This will help you secure some of the best car insurance deals at an affordable price.