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How To Get Cheap Car Insurance

By Finserv MARKETS - Jul 29,2020
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Owning a car is a huge responsibility. You have to factor in fuel expenses, maintenance costs, and insurance coverage. When it comes to car insurance in India, choosing the right policy at an affordable rate is essential. In this section, we will be discussing how one can get a car insurance plan at cheaper rates in India. How Can I Get Cheaper Car Insurance? Here are a few tips that will help you get an affordable car insurance deal in India - 1. Do not go for the first plan you come across When you are looking for car insurance plans, do not sign the deal for the first policy that you come across in the market. Do your research well. You can compare different car insurance plans online. Consider factors such as premiums charged, coverage of the policy, exclusions, claim settlement ratio, etc. Based on the comparison results, you will be able to choose a car insurance plan that best suits your needs. 2. Consider voluntary deductions A voluntary deduction is nothing but the amount that you (the policyholder) agreed to pay from your pocket in case of any unfortunate event. If you have not opted for voluntary deductions, then you shall receive a full claim settlement amount in case of a mishap. When you choose voluntary deductions, you will be liable to pay that amount while the insurer pays the balance claim amount. On the other hand, the higher your voluntary deduction amount is, the lower your car insurance premiums will be. 3. Install anti-theft devices Car insurance premiums are high for people who live in theft-prone areas. Since the chances of your vehicle getting stolen are high, the insurer takes you as a risky applicant and determines your premiums accordingly. To minimise the risk imposed due to your area of residency, you can install anti-theft devices to keep your car safe. Once the insurer verifies that your car is secure and has essential safety features such as airbags, they reduce the car insurance premiums. 4. Do not claim for minor damages Once the car is insured, people are quite tempted to make claims for every minor damage incurred by the vehicle. What most people forget is that for every claim-free year, the insurer rewards you with the No Claim Bonus (NCB). You earn a minimum of 20% NCB on the first claim-free year, which can go up to a maximum of 50% for five consecutive claim-free years. The earned NCB can be used to avail discounts on the premiums of your car insurance plan during renewal. So, when you claim for minor damages on your car insurance plan, you lose the earned bonus. 5. Do not let your policy lapse You must renew your car insurance plan on time. Not only is it illegal to drive a car with a lapsed car insurance plan, but you will also lose out on the No Claim Bonus that you have accumulated so far. Hence, put a reminder on your planner to renew your car insurance policy before the expiry date. Now that you know how you can reduce the car insurance premium, we will take you through the factors that affect the premium rates in India. Factors Influencing Car Insurance Premiums The factors that affect your car insurance premium rates are as follows - ● When applying for a car insurance plan, the insurer will consider your driving history and previous claim records. If your history involves accidents and traffic violations, it affects your car insurance premiums. ● The maintenance and repair of a brand new vehicle are expensive. Also, it is better to opt for comprehensive car insurance as it covers for own damage and third-party liabilities. You can enhance the scope of the policy with add-on covers. While all these are the safest option to keep your car protected during unforeseen events, it factors in when determining the premium amount. ● The type and features of your car also influence the premium amount. The premiums for luxury and sports cars are high compared to other vehicles. ● The area of your residency also affects car insurance premiums. The insurer will take into consideration your weather conditions, crime rates, and the severity of the claims in your area when determining the premium amount. Conclusion When looking for extensive car insurance coverage, affordability is not the only factor to be taken into consideration. It is important to have a policy that protects your vehicle financially, in times of need. Hence, having a comprehensive car insurance plan will cover the damage repair expenses in case of mishaps and take care of the third-party liabilities as well. If you are looking for comprehensive coverage, consider buying Car Insurance at Finserv MARKETS online. You can benefit from features such as hassle-free renewals, cashless claim settlements, bespoke car insurance plans to suit your demands, 24x7 assistance, and more. In fact, you can buy/renew the policy through the Finserv MARKETS App as well. So, don’t wait. Get a comprehensive car insurance plan with us today.

Owning a car is a huge responsibility. You have to factor in fuel expenses, maintenance costs, and insurance coverage. When it comes to car insurance in India, choosing the right policy at an affordable rate is essential. In this section, we will be discussing how one can get a car insurance plan at cheaper rates in India.

How Can I Get Cheaper Car Insurance?

Here are a few tips that will help you get an affordable car insurance deal in India –

  • Do not go for the first plan you come across

When you are looking for car insurance plans, do not sign the deal for the first policy that you come across in the market. Do your research well.

You can compare different car insurance plans online. Consider factors such as premiums charged, coverage of the policy, exclusions, claim settlement ratio, etc. Based on the comparison results, you will be able to choose a car insurance plan that best suits your needs.

  • Consider voluntary deductions

A voluntary deduction is nothing but the amount that you (the policyholder) agreed to pay from your pocket in case of any unfortunate event.

If you have not opted for voluntary deductions, then you shall receive a full claim settlement amount in case of a mishap. When you choose voluntary deductions, you will be liable to pay that amount while the insurer pays the balance claim amount.

On the other hand, the higher your voluntary deduction amount is, the lower your car insurance premiums will be.

  • Install anti-theft devices

Car insurance premiums are high for people who live in theft-prone areas. Since the chances of your vehicle getting stolen are high, the insurer takes you as a risky applicant and determines your premiums accordingly.

To minimise the risk imposed due to your area of residency, you can install anti-theft devices to keep your car safe. Once the insurer verifies that your car is secure and has essential safety features such as airbags, they reduce the car insurance premiums.

  • Do not claim for minor damages

Once the car is insured, people are quite tempted to make claims for every minor damage incurred by the vehicle. What most people forget is that for every claim-free year, the insurer rewards you with the No Claim Bonus (NCB). You earn a minimum of 20% NCB on the first claim-free year, which can go up to a maximum of 50% for five consecutive claim-free years.

The earned NCB can be used to avail discounts on the premiums of your car insurance plan during renewal. So, when you claim for minor damages on your car insurance plan, you lose the earned bonus.

  • Do not let your policy lapse

You must renew your car insurance plan on time. Not only is it illegal to drive a car with a lapsed car insurance plan, but you will also lose out on the No Claim Bonus that you have accumulated so far. Hence, put a reminder on your planner to renew your car insurance policy before the expiry date.

Now that you know how you can reduce the car insurance premium, we will take you through the factors that affect the premium rates in India.

Factors Influencing Car Insurance Premiums

The factors that affect your car insurance premium rates are as follows –

  • When applying for a car insurance plan, the insurer will consider your driving history and previous claim records. If your history involves accidents and traffic violations, it affects your car insurance premiums.
  • The maintenance and repair of a brand new vehicle are expensive. Also, it is better to opt for comprehensive car insurance as it covers for own damage and third-party liabilities. You can enhance the scope of the policy with add-on covers. While all these are the safest option to keep your car protected during unforeseen events, it factors in when determining the premium amount.
  • The type and features of your car also influence the premium amount. The premiums for luxury and sports cars are high compared to other vehicles.
  • The area of your residency also affects car insurance premiums. The insurer will take into consideration your weather conditions, crime rates, and the severity of the claims in your area when determining the premium amount.

Conclusion

When looking for extensive car insurance coverage, affordability is not the only factor to be taken into consideration. It is important to have a policy that protects your vehicle financially, in times of need. Hence, having a comprehensive car insurance plan will cover the damage repair expenses in case of mishaps and take care of the third-party liabilities as well.

If you are looking for comprehensive coverage, consider buying Car Insurance at Finserv MARKETS online. You can benefit from features such as hassle-free renewals, cashless claim settlements, bespoke car insurance plans to suit your demands, 24×7 assistance, and more.

In fact, you can buy/renew the policy through the Finserv MARKETS App as well. So, don’t wait. Get a comprehensive car insurance plan with us today.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522