Affordable Car Insurance Policy For Your Car

Purchasing a car insurance policy is legally mandatory for car owners in India. A motor insurance policy can be a significant expense, so every vehicle owner dreams of a policy with comprehensive coverage at cheaper premiums.

But is it the right decision to go for a cheap car insurance policy? While the answer varies from person to person, a thoughtful purchase may benefit you in certain ways. You will be surprised to know that your affordable car insurance may also provide you with adequate features and IDV. Can’t believe it? You will, for sure!

Continue reading this article to learn more about affordable and cheap car insurance in India, its advantages and disadvantages, and the premium comparison list for a better understanding.

How Do You Define a Cheap Car Insurance Policy?

The term ‘cheap car insurance’ may sound financially profitable and reduce your car premium cost. But do you know what it exactly means?

The flip side of affordable car insurance is that it quotes a lower Insured Declared Value (IDV) for your car, which ultimately reduces the sum insured of the policy. But remember, when in the search for a cheap car insurance policy, don’t fall for inadequate coverage for your car.

While low-cost auto insurance may save you money at the time of policy purchase, it may lead to big expenses later when your vehicle is damaged. Hence, look for affordable car insurance that offers value for your money and comprehensive features.

Factors that Determine Car Insurance Premium

Before getting to how you can buy an affordable car insurance policy, make sure you are aware of the factors that determine the car insurance premium. To make it easy for you, we have listed the factors below:

List of Low-Cost Car Insurance Policies in India

The premium cost for the same car may vary for different car insurance companies based on the multiple covers and benefits offered. You can customise the premiums by adding or removing add-on covers while comparing car insurance.

For your reference, we have prepared a premium comparison list of the best car insurance companies offering a 1+3 bundled plan (1-year own damage + 3-year third party).

Say you want to purchase a brand new Maruti Wagon R Lxi 4-seater (1061 cc, petrol), registered for Delhi (DL01) location. The estimated premium package will be as follows:

* Disclaimer: RenewBuy does not endorse any particular motor insurance company, plan, or rates offered by an insurer. Select the correct insurance policy as per your needs.

What is Covered under a Cheap Comprehensive Car Insurance Policy?

A low-cost and comprehensive car insurance policy offers extensive coverage for the damage caused to you, your car, and the third party. While keeping cost in mind, prefer car insurance that offers sufficient coverage at a feasible price. Below is the list of coverage you may look for while buying a low-cost car insurance policy:

Car Theft: In case your car gets stolen, a comprehensive car insurance policy provides the IDV or the market value of the car. In case of complete or irreversible car damage, you get the IDV of the car as the reimbursement.

Damage Caused by Natural Disasters: Comprehensive car insurance policies and standalone own damage policies offer complete financial protection against damages caused by natural disasters, such as floods, earthquakes, cyclones, etc.

Damage Caused by Man-Made Calamities: In case your car sustains damage caused by man-made calamities, such as strikes, acts of terrorism, or riots, comprehensive car insurance and your own damage policy provide financial protection.

Damage Dues to Car Accidents: The repair expenses are reimbursed to you in case of minor or major damage caused to your car.

Transit Damages: When moving your car from one place to another, there might be certain damages. A comprehensive car insurance policy protects you financially against the transit damages caused to your car.

Third-Party Liability Cover: A comprehensive car insurance policy and a third-party car insurance policy cover you financially and legally against third-party damages to a person and/or vehicle.

Personal Accident Cover: Car owners get personal accident cover under a comprehensive car insurance policy, which reimburses the medical expenses incurred during treatment. The policy also covers the transportation of the owner-driver to the hospital and also offers a sum assured to the beneficiaries in the event of the demise of the owner-driver.

Car Insurance Add-Ons: You can customise your car insurance policy by adding add-on covers according to your insurance requirements and financial capabilities.

Tips to Get Affordable and Cheap Car Insurance

Whether it's the first time you buy a car insurance policy or if you are an experienced driver, certain basics can help you crack adequate discounts and deals. We have compiled a list of the basics you can implement to lower your premiums and make it an affordable car insurance policy for you:

Compare Multiple Quotes: Review the different car insurance options and features the insurers offer. Compare what is provided at what value and what is missing. For more ease, connect with one of our RenewBuy Partners, who will do it for you and help you find a policy that fits your finances and complements your car insurance needs.

Analyse the Coverages: Analyse and remove unnecessary coverages to make room for the required ones. This may lower the insurance premium and allow you to add the necessary coverages.

Avoid Making Minor Claims: Using your car insurance policy in case of minor claims may lower your chances of gaining several benefits, such as a no-claim bonus in car insurance and lower premiums during renewals. So, to preserve those benefits, prefer paying for minor claims from your pocket.

No Claim Bonus: NCB in car insurance is offered at the time of policy renewal when you do not claim during the policy year. You can grab up to a 5-10% discount during policy renewal if no claim is filed for the policy year.

Keep Your Car Secured: Whether you have car insurance as your safety net or not, keeping your car secure may prevent big and small damages. To keep the car secure, you can install safety systems, such as anti-theft alarms, a locked steering wheel, airbags, etc.

Avoid Car Modifications: Certain car modifications, such as alloy wheels, ultrasonic sensors, automotive night vision, etc., may enhance your car's appearance. However, in an accident, the repair may be expensive, ultimately increasing the car insurance premiums.

Ask for Discounts: Depending on different factors, such as low mileage, membership in certain organisations, multi-policy discounts, etc., you may grab a good discount on the policy. This will help you cut costs while getting good coverage without compromising.

Select Affordable Deductibles: Deductibles are the amount you must pay out of your pocket before using the car insurance policy benefits. The higher the deductibles, the lower the premiums. So, we advise you to choose the deductibles wisely.

How to Evaluate Premium Using a Car Insurance Premium Calculator?

To estimate how much you need to spend to buy cheap car insurance and get an idea of what you save, use a car insurance premium calculator. To use the calculator, you need to submit the following details:

• The age, make and model of the car
• Year of manufacture
• Car model details
• Car ex-showroom price
• Cubic capacity of the engine
• The location where the car is registered
• Fuel type
• IDV of the car

Disadvantages of Cheap Car Insurance

While purchasing car insurance, you may have a second thought: is it too much to pay for a car insurance policy? Should I opt for a low-cost car insurance policy? No doubt, the cost-cutting comes with certain disadvantages mentioned as:

• Limited and insufficient coverage if not purchased wisely
• Lack of important add-on covers
• High deductibles
• Impact on your IDV, which will affect the resale value of your car

Compare and Buy Comprehensive Car Insurance Online with RenewBuy

RenewBuyInsurance has been a trusted motor insurance partner for many years. You can simply connect with one of our partners, who will help you compare affordable car insurance quotes online from different companies. Thus, you can find the best plan with an affordable premium that matches your vehicle needs.