Car insurance is a mandatory requirement for all car owners. The Motor Vehicles Act of 1988 defines these regulations, and no one can bypass them. Be it a commercial car or a privately owned car, all must comply with the law.
But among the myriad insurance plans to choose from, it often can get confusing which is a suitable insurance cover. Thus, many car owners end up selecting only a third-party cover, which is the minimum required insurance cover. While this may be sufficient to comply with regulations, it certainly lacks any coverage for the damage to your vehicle. For that reason, insurance experts recommend buying a comprehensive car insurance plan to make the most of your insurance policy.
Since comprehensive plans offer a wider insurance cover, they tend to be expensive. For someone looking to strike a balance between policy features and its price, this article will help to keep the premiums in check while ensuring comprehensive insurance coverage.
- Choosing the right insurance plan
Selecting the right insurance policy is the first step to getting a plan that is not only light on your wallet but also includes necessary features. There are two types of policies that are available—a third-party cover and a comprehensive insurance plan. Depending on the vehicle’s usage, you can choose to buy an insurance policy. In addition, make sure to compare the available insurance policies as it helps save on premiums. *
- Avoiding raising minor insurance claims
You remember your insurance plan only in situations of damage and accidents. But not all the damage needs to be claimed with the insurance company. A comprehensive policy offers a No-Claim Bonus, or NCB, when no claims are made during a policy year. This bonus is in the form of a markdown in the insurance premium and hence, helps lower the car insurance prices. By raising a claim for nominal repairs, you end up foregoing such a concession that you would otherwise receive when renewing your insurance policy. Thus, do not raise an insurance claim if the repairs are minimal. *
- Transferring NCB benefits
Another hack on how to lower your policy premiums is for the times when you buy a new car. Most buyers assume that all policy benefits, including the accumulated no-claim bonus, are lost when you sell your vehicle. However, such an NCB benefit is transferable. Transferring your accumulated NCB helps carry forward and avail concessions in the insurance policy for your new car. You can visit the official website of IRDAI for further details. *
- Opting for voluntary deductibles
Every car insurance policy includes a deductible, which is a nominal amount that the policyholder is required to pay when a claim is raised. Of the two types of deductibles, a compulsory deductible is included in all car insurance plans, but a voluntary deductible can be added in addition to the mandatory one. By choosing a voluntary deductible, the policyholder increases the out-of-pocket expense for the policy, thereby lowering the amount of premium paid. *
- Excluding unnecessary add-ons
Add-ons are optional policy features that are available when you buy a comprehensive insurance policy. There are different add-ons that you can choose to enhance your policy’s scope. But dropping unnecessary add-ons helps keep the premiums at an affordable level while securing your car with all the necessary insurance cover. *
* Standard T&C Apply
These are some tips to help you ensure to pay the right amount for your insurance cover. Not only do they help when buying a policy, but also at the time of car insurance renewal. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.