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4 Best Ideas To Get Lowest Car Insurance

Awesome Ideas To Get Lowest Car Insurance After the Motor Vehicle Act issued in the year 1988, it has been declared illegal to take down a car without insurance. Car insurances not only provide…

Awesome Ideas To Get Lowest Car Insurance

After the Motor Vehicle Act issued in the year 1988, it has been declared illegal to take down a car without insurance. Car insurances not only provide umpteenth coverage during any kind of damage but also assists the owners with urgent monetary requirements in case of severe car accidents. However, with the increasing car price in the market, affording a genuine car insurance policy with necessary benefits has become extremely difficult. Hence, a number of owners are on the lookout for cheap car insurance which can help them in the long run. Especially for new owners or young car drivers, a cheap car insurance policy helps to fetch the necessary benefits without burning a hole in the pocket. However, how do we get cheap car insurance? Let us discover how-

Opt For More Deductibles

Deductibles are of two types: compulsory and voluntary. While the former remains fixed, the latter can be manipulated to fetch cheap car insurance policy rates. The voluntary excess listed in the policy needs to be paid by the insured individual at the time of policy claiming and is not included in the premiums. Though it reduces the amount of monthly premiums that need to be submitted, the owner has to bear any additional expense from his own pockets. For example, a person lists 5,000 INR as voluntary deductible in a policy of 20,000 INR. The company will only bear the expense of the premium covered, i.e., 15,000 INR. In case of any damage repair costing 20,000 INR, the company shall only cover up to 15,000 INR, and the rest should be paid by the owner. Thus, more the voluntary excess listed, lower will be the premiums.

No Claim Bonus

No Claim Bonus (NCB) comes into play, during policy renewal. In case the insured individual did not made any claim throughout the year, he/she is given some discount on renewal of the policy. If the insured continues not to take the claim the discount price on every renewal is increased.

It is given on the following basis-

  • After one claim free year it is 20%
  • 2nd consecutive year- 25%
  • 3rd consecutive year it is 35%
  • 4th consecutive year it will be 45%

If the owner has not made any claim for 5th consecutive year, the owner is liable to get a 50% additional discount on renewal.

With a certain percent of deduction in the policy premiums which is ideal for people looking for cheap car insurance policy post renewal.

Focus On The IDV

The Insured Declared Value is the maximum value that is promised by the insurance company to provide in care of total car damage. It is the IDV, based on which, the premium is calculated. In simple words, if the policyholder buys an insurance that has high IDV, the premiums will be directly proportionate to the IDV. Thus, for cheap car insurance rates, the insurance company might suggest you a range of policies that has comparatively lower IDV.

Double Check The Add-Ons

The add-ons listed in the policy often keep the premiums piled up and multiplied. One of the best tips for availing the car owner is to opt out unnecessary add-ons and prevent creating a hole in your pocket. Other tips for reducing car insurance:

  • Policyholders willing to get cheap car insurance rates are advised to install anti-theft devices as these assure added protection of the car and posses leader threat to get stolen and benefits the insurer in the long run

Having a membership of clubs like Automobile Association of India, etc., may grant the policyholder certain discounts. The members (after being eligible under certain criteria) of these clubs are considered to be responsible drivers. One should always check the benefits offered before opting for a cheap car insurance policy. This is because a policy without the necessary coverage will eventually not come to any use during emergencies. Hence, the policyholders are always advised to thoroughly research and compare the available policies in the market that offer similar benefits at a much cheaper rate.

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