Every car in India needs to be protected under a car insurance policy. The Motor Vehicles Act, 1988 mandates all car owners to have their four wheeler covered under a car insurance policy. However, the law only mandates third party liability cover, while leaving the decision to buy own damage cover to the discretion of the car owner. For the unversed, third party liability cover provides financial aid in case your car has caused accidental injuries/ death of third parties or third party property damages. On the other hand, own damage cover indemnifies any loss or damages caused to your four wheeler in an accident, fire or due to manmade disasters, natural calamities or theft.
Whether you decide to buy a four wheeler insurance with comprehensive cover (third party + own damage cover) or third party liability cover only, you should strive to get maximum coverage without spending a fortune. In order to do so, you must check the cost of car insurance before buying it.
How Much Does Car Insurance Cost?
There is no fixed answer to know the price of a car insurance policy. This is because the cost of car insurance depends on several factors, such as the type of coverage opted, car make & model, age & engine capacity of the vehicle, claim history, etc. These factors may differ from car to car and thus, differentiates the cost of four wheeler insurance for one car with another. For example, if your car is 5 years old, you will have to pay less for 4 wheeler insurance than a car that is 2 years old.
To know the price of car insurance, you will have to use an online car insurance calculator. This calculator uses the details of your four wheeler to arrive at the car insurance price. Most insurance companies offer car insurance calculators on their websites. However, you can check the cost of four wheeler insurance for your car by various motor insurers at one place by visiting the website of an insurance broker, such as Policybazaar.
7 Ways to Make a Car Insurance Policy Affordable
When you have the task to buy affordable car insurance for your four wheeler, always remember to not go ahead with the first quote you come across. An ideal car insurance policy is the one that offers appropriate coverage at the minimum possible price. It may seem extremely difficult to find your ideal car insurance at an affordable price. But don’t worry! Here are seven ways to make your car insurance policy affordable:
Compare Car Insurance Online
The best way to find affordable four wheeler insurance for your car is to compare car insurance at Policybazaar and other insurance broker websites. An insurance company will only show the cost of four wheeler insurance plans offered by them and visiting each insurer’s website individually can take a lot of time. Online insurance broker shows the list of car insurance prices by different insurers allowing you to compare them with each other. You can opt for a plan that provides an ideal insured declared value (IDV) and maximum coverage at a budget-friendly cost.
Choose Third Party Over Comprehensive Cover
When it comes to motor insurance, more coverage attracts higher costs. Comprehensive car insurance includes both own damage and third party cover. Naturally, comprehensive car insurance offers greater coverage than third party car insurance and thus, comes at a higher cost. Since only third party insurance is mandatory under the law, you can always do away with comprehensive cover for your car, especially if it is old. This will reduce the liability on your insurer and hence, your car insurance policy will become more affordable.
Increase Your Voluntary Deductible
Voluntary deductible refers to the share of the claim amount that the car owner volunteers to bear at the time of settling the claims. These deductibles are pretty low and do not put a financial burden on the policyholder. However, it does help to reduce the premium for a car insurance policy. When you opt for a voluntary deductible, the insurance company rewards you with saving offers. Thus, you end up making your car insurance affordable by opting for a higher voluntary deductible. Just make sure to opt for a voluntary deductible amount that you can afford to pay during claim settlement.
Don’t Opt for Unnecessary Add-On Covers
An add-on cover provides additional protection to your four wheeler in exchange for a higher premium. Several add-on covers, such as zero depreciation cover, roadside assistance, engine protector, etc. are available under car insurance which may increase your premium substantially. Interestingly, not every add-on cover is suitable for your car and you can easily make things work without buying them. For instance, if your car is new, the engine would be in perfect condition eliminating the need for the engine protector cover. Therefore, you can make your car insurance affordable by removing unnecessary add-on covers from your policy.
Pay Premiums Annually
When you are buying car insurance, you must buy always choose to pay the premiums annually. Motor insurance companies may offer you the option of paying your premium monthly/ quarterly/ semi-annually and annually. Paying car insurance premiums on instalments may seem easy on the pockets but are more expensive in real. But if you pay the premium in one go, it will turn out to be more cost-effective. Thus, opt for a plan that allows you to pay your premiums annually.
Buy Insurance for All Cars From the Same Insurer
If you have more than one car at home, try to get them all insured by the same motor insurance company. Insurance providers mostly provide saving offers to people who get multiple cars or products insured from them. By doing so, you come across as a loyal customer to the insurer and your insurer gives you saving offers to reduce your premium amount.
A person who drives his/ her car safely poses a lower liability for an insurance company than a rash driver. If you have a history of accidents and car insurance claims, you will be charged a higher premium amount. On the contrary, people who drive their cars responsibly will be given No Claim Bonus (NCB) that can be used to reduce your premium during policy renewal. Moreover, you can build your NCB to up to 50% to reduce your car insurance renewal price by half. Thus, become a responsible driver and avoid making minor claims to build your NCB and make your car insurance affordable.
Buying car insurance is as important as buying a car since it protects your vehicle for all possible risks. Therefore, you must compare car insurance at Policybazaar or other online insurance brokers to find the most suitable plan. Moreover, if you diligently follow the tips mentioned earlier, your car insurance will surely become affordable.
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