Car insurance is a crucial addition to your car and secures it in times of need. However, as the price of the car goes up, thus does the rate of your insurance plan from car insurance companies in India. Lots of people complain about the subject of the high cost of car insurance premiums. Even though it mostly relies on the IDV (Insurance Declared Value) of your car, there are some tips and tricks which you could use to save the additional bucks.
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How can I reduce my car insurance premium in India?
- Compare Car Insurance Quotes Online: The best method to reduce car insurance premium is getting a quote from the top companies in the marketplace and comparing the similar. Moreover, if you have been taking the same type of policy for your car for many years, you should definitely try other insurance companies. You may get a good quote and attractive discounts and lower your car insurance premium.
- Increase The Deductibles: A deductible is an amount paid by the policy owner when making a claim. If your insurance deductible is zero, you will receive the entire claim amount for your claim. But, this will increase the upfront insurance premium. Increasing your deductibles can reduce your car insurance premium
- Avoid Insurance Policy Lapse: This is a big no-no. Once your car insurance policy lapse, you will lose out on the NCB (No claim bonus) you were eligible for. Set a reminder and renew your car insurance policy without fail.
- Reduce Car Modifications: Car accessories like expensive alloy wheels, fancy lights, car camera, spoilers can all attract heavy premiums. Keep the car modification to a minimum and only install car accessories with utility.
- Install Anti-Theft Devices: Car safety devices like an anti-theft alarm, gear locks, steering lock can fetch you upto 5% reduction on your car insurance premium.
- Avoid Filing Small Claims: Although, the very purpose of a car insurance policy is to save you expenses after an accident. However, making a small car insurance claim can seriously affect your NCB (No Claim Bonus). A No Claim Bonus is a benefit awarded for “no claim” on a policy cover. NCB can lower your car insurance premium by upto 50%.
- Opt-Out Of Unnecessary Add-ons: Definitely opt-out of additional features when buying an insurance policy. This can significantly bring down the premium rate against your car insurance policy.
- Insist On A Discount: A policyholder can avail big discounts on his car insurance based on his/her policyholder’s age, driving record, profession. In additions, being a member of the Automobile Association of India (AAI) or the Western India Automobile Association (WIAA) can also fetch you good savings.
Make sure you remember these tips in mind when you purchase new car insurance or renew car insurance online the next time. Get the top car insurance plan from the famous insurance companies in India for you and your requirements.
Why are car insurance premiums so high?
Owning and maintaining a car is an investment, but that doesn’t mean you should not opt for car insurance. With dangerous traffic situations and rising road accidents, it is significant to secure your car. However, car insurance can make up the more expense of your income per annum if you don’t understand the fundamentals behind buying auto insurance.
How are insurance premiums calculated?
Car insurance premiums are planned to bear in mind the risk issues. As is said, trust for the best but be prepared for the most awful. The same theory is used in determining the vehicle insurance premium charge. The insurance corporation pays heed to how lots of customers are prone to make insurance claims relying upon their situation.
What factors affect your car insurance premium?
- City of Registration: The premium for car insurance rule differs with the city for which the car is registered. The probability of car thefts and accidents in the metropolitan cities are more as compared to the normal two cities. So, cars in metropolitan areas have to pay more premiums.
- Build and Model of the Car: Factors linked with the build and model of a car can play a chief role in determining the premium.
- No Extra Claim Percentage: The cost of the insurance premium will be fewer if the car insurance policyholder has not prepared any claims earlier. Thus, it is recommended that the customers not to start to the car insurance company just for a negligible mark or scratch.
- Kind of Coverage Taken: Consumers who like better full coverage or consider extra covers such as CNG or LPG kits, roadside support, and key replacement charges will have to pay extra.
There are tons of factors out there that determine your car insurance premium like your CIBIL score, your annual income return, no. of previous loans you currently have, etc. It varies from cars to cars or from person to person. For more info, you need to check your credibility, credit score, etc for ease.
How do I find out my car insurance premium?
There is all the time a mystery nearby the car insurance premiums and how different folks find a different deal. Some of them pay vast amounts for insuring their car whereas some move with the minimum. We can manage to pay premiums simply when we can understand the formula of creating the rate. According to professionals, the whole motor insurance charges are calculated after doing a risk advantage analysis. That is the key reason the suppliers charge different premiums from their customers.
What makes car insurance go up?
Traffic violations are an ordinary reason for auto insurance prices to go up. Some violations are more dangerous than others. Violations are generally classified into two categories: the first one is major violations, and the next is minor violations.
Why do insurance rates increase?
In recent times, if your car insurance premium went up, there are a number of reasons why that might be. Whereas some charge increases may be caused by feature within your control, others are caused by matters that are influencing car insurance customers across the nation.