Car prices are growing rapidly in India, and so are maintenance fees. Auto insurance rates are also going up along with them. IRDAI, for example, recently nodded up to 40% for an increase in third party insurance premium. Therefore, under these conditions, you should be aware of the different factors that typically impact your car insurance policy so you can take the full value and therefore reduce your premiums.
Table of Contents
1. Smart Drive
This is a newly implemented vehicle insurance alternative, whereby the insurance provider offers a GPS system at the insurer’s side at a cost with viewing facility.
2. Avoid additional fittings
Generally, your car insurance premium is calculated at baseline level coverage based on vehicle value, vehicle age, type of fuel, etc. Any extension such as fittings made from LPT, CD player or ultrasound censor will alter the premium car policy.
3. Keep No Claim Bonus (NCB) Intact
For future auto insurance premiums you are liable for a no claim benefit if you do not make a claim in a year. Most businesses offer a 30 to 50 per cent premium deduction if you are not consistently paying for 3 to 5 years. Except in the case of small claims, stop filing a petition so that you have long-term access to a large NCB.
4. Go for NCB Protector
This facility is offered by most general insurance companies, under which the customer can pay a little more premium and use that benefit.
5. Seek quote from different insurance companies
It makes sense to receive quotation from at least 5 to 6 different insurance providers and to compare the same in terms of value and premium to arrive at a rational decision. The market is very competitive and so, to get a better comparison, you will always try to get quotes online. Just the same, make sure you get quotes for similar content.
6. Opt for voluntary deductibles
You can opt out of civil lawsuits for minor damages, if you like. A generous deductible incentive is given for this, which can go up to 35 percent of the vehicle loss fee, up to the volunteer deductible sum that you select. A deductible is a fixed amount to be paid by the insured when he / she files a claim and the insurer pays the balance accordingly. Choosing a higher limit will give you a discount on the rate. This way, you can save on the premium too.
7. Make and model of the car
These days insurers keep a close eye on the cars make and model as every make and model has their own claim record. Hence, premiums are often calculated on the basis of the experience of claiming a product. For example, due to their structure or use some models can be more predisposed to claims. So, insurers will also be less willing to give a greater discount in such cases. So, for a make / model with a favorable loss ratio, you can expect higher discounts than a model that meets accidents on a regular basis or more frequently.
8. Avoid policy lapse
Try always to avoid lapse in policy. If your policy is lapsing, then insurance providers will disqualify the discounts and benefits that you might receive in the future when you renew your policy. As you might lose your No-Claim Bonus.
9. Profession of the insured
Many insurance providers provide discounts based on the insured’s occupation (viz: doctors, teachers, attorneys, etc.). An office goer, for example, will usually only use the vehicle to move between his office and home, while a sales worker will use the vehicle to move around the city. No wonder, insurance companies also take account of one’s occupation whilst determining the premium.
10. Safety features
If the vehicle has protection and anti-theft features and equipment such as airbags, anti-lock breaks, the auto insurance premium will be reduced by 2-5 per cent. However, an authorized make needs to be mounted to assert the discount.