Buying a car is a personal choice, but having a four wheeler insurance policy is mandatory for all car owners in India. According to the Motor Vehicles Act of 1988, if you own a car in India, then you must have at least a third-party car insurance to drive on Indian roads legally. Many people still refrain from buying a car insurance policy and ultimately end up paying fines. If you still think the same and avoid buying this mandatory policy, thinking it’s expensive, then this blog is for you. In the section below, we will help you understand how to save on your four-wheeler insurance premium.
Tips to Save on Car Insurance Policy
Listed below are some of the smart ways that will help you save on your car insurance policy:
- Choose the Adequate Coverage
A car insurance policy has three types: third-party, standalone own-damage, and comprehensive. A Comprehensive Policy has a higher premium attached to it than other policies as it offers wider coverage. While this policy is highly recommended to get enhanced coverage, you can avoid buying it if you have an old car. Old car owners can buy a third-party insurance policy instead of paying a higher premium for a Comprehensive Policy.
- Include Necessary Add-ons
In a car insurance policy, you can include a range of add-ons such as Zero Depreciation Cover, No Claim Bonus Cover, Roadside Assistance, etc. These add-ons enhance the overall coverage of your car insurance policy. However, they are available at higher premiums. Thus, you need to be very mindful when including these add-ons, as unnecessary add-ons will simply result in you paying higher premiums.
- Renew the Policy on Time
It is a punishable offense to drive a four-wheeler with an expired car insurance policy. Thus, it is important to renew the policy on time to avoid paying extra money as well as fines. When the policy expires, the insurer sometimes charges a higher premium for the same car insurance policy. This is mainly because a lapsed policy may indicate the policyholder’s carelessness in renewing the policy.
- Install Anti-theft Devices
If you install anti-theft devices that are approved by the Automobile Research Association of India, then the insurer may charge a lower car insurance premium. This is because when you have such safety devices installed in your car, the chances of it getting stolen are less and the insurer’s credibility is also lower.
- Select the Right IDV
IDV, or the Insured Declared Value, is the exact market value of the vehicle. It is also the maximum amount that the insurer will pay you when you raise a car insurance claim. Furthermore, the IDV is directly proportional to the car insurance premium. This means that when you choose a lower IDV, the car insurance premium will also be lower.
- Refrain from Unnecessary Car Modifications
Many people enhance the look and feel of their car with additional features without realising that doing so may affect the car insurance premium. When you include these modifications in your car, the insurer’s credibility increases; hence, the overall premium you need to pay also increases.
- Opt for Voluntary Deductibles
While buying a car insurance policy, you can include a deductible component. These deductibles refer to the amount that the policyholder agrees to pay from their own pocket during claim settlement. Including deductibles in your car insurance policy is also a helpful way to lower down the overall car insurance premium.
- Don’t Raise Minor Claims
You should avoid raising claims for minor damages like scratches in the car. These minor damages can be repaired without burning a hole in your pocket. Thus, for such damages, you must spend from your own pocket and refrain from raising claim requests. This will also keep your No Claim Bonus intact and lower the premium.
Summing Up
Thus, to save on car insurance premiums, follow the above-mentioned tips. You must also compare the different plans available to get the best plan for your precious vehicle.
