Buying a new car fills your heart with joy. Imagine you drive down to your friend's porch to express your happiness and surprise him in your new car. After a short discussion, you find out that you paid an enormous sum on insurance compared to him.
To avoid such a scenario and ensure you get a good deal on your car insurance policy, you first need to know what factors influence car insurance costs. Read on.
Tips on how to get the best deals on car insurance
Here are a few tips that will help you get the best car insurance effortlessly-
- Take a quote
You can head here on our website and enter your vehicle details and personal information to take a quote. Once you see the quote, you can customise it with the coverage you need to check the price change. In this way, you can go for the lowest-priced premium on the coverage that suits your needs best.
- Look at the add-ons and other benefits
You can be smart and save some money on the car insurance premium by adopting some of the methods we discussed in this article. But the premium is not the only parameter to determine the best car insurance policy. A car insurance policy with cheaper premium and lower coverage is not necessarily better than others. In comparison, you can buy a car insurance policy that covers more against payment of a slightly higher premium. This brings us to the riders or add-ons.
At times, add-ons like zero depreciation, garage cash, roadside assistance, etc. prove crucial. Check for such add-ons when you are customising your car insurance policy.
- Pay attention to fine prints and exclusions
At the time of buying or renewing car insurance, always enquire your dealer about the exclusions. Comprehensive car insurance covers a lot, but not everything. Also, there are some clauses that you need to keep in mind at the time of a claim. Here are some pointers that you should know:
Car insurance doesn't wholly cover damages caused to the engine. No matter how surprising that may sound, that's a fact. You can opt for an engine protect add-on that will cover engine damage in case of an accident.
Although car insurance is issued on the motor vehicle's chassis number and engine number, it doesn't cover damages/loss if the car gets into an accident before registration.
Suppose the driver doesn't hold a valid driving licence and still drives a car into an accident. In that case, insurance may not cover damages. Also, in case of unauthorised driving, the insurance may not cover damages either.
Hence, before you buy a car insurance policy, you must be well aware of the exclusions.
- Check for discounts
Suppose you have installed an ARAI approved anti-theft device in your vehicle. In that case, you can get a discount of 2.5% on the OD (Own Damage) premium, subject to a maximum of ₹500.
Another type of discount you can get on car insurance is the No Claim Bonus (NCB), which we mentioned earlier in this article. If you made no claims in the past years, you could get up to 50% NCB on your own damage premium.
Apart from the above, insurers also offer a fixed discount to members of the Automobile Association of India (AAI) and Western India Automobile Association (WIAA). So if you are a member, you can opt for the discount at the time of policy purchase.
Tips to get discounts on car insurance premium
If you are looking for discounts on car insurance policy, here are a few things you can do-
- Leverage Membership Discounts: Certain organisations and memberships offer their members exclusive insurance discounts. For instance, AARP members can access special rates on auto insurance.
- Maintain Continuous Coverage: Lapses in insurance coverage can be viewed negatively by insurers. Maintaining continuous coverage without gaps can make you eligible for loyalty discounts.
- Take Defensive Driving Courses: Completing accredited defensive driving courses projects your commitment to safe driving, which can lead to premium discounts.
- Inquire About Low Mileage Discounts: If you don't drive frequently, ask your insurer about low-mileage discounts, as reduced road time lowers the likelihood of accidents.
- Pay Premiums Annually: At times, insurers offer discounts if your premium is paid annually instead of in monthly instalments, as it reduces administrative costs.
FAQs
- Comprehensive car insurance and third-party car insurance: What is the difference?
Third party car insurance covers damages or injuries you cause to others but does not protect your vehicle. Comprehensive car insurance provides broader coverage, including third-party liabilities and damages to your vehicle from accidents, theft, or natural disasters.
- How can I determine the right car coverage amount?
Assess your car's value, driving habits, and financial situation. Consulting with an insurance advisor can help you tailor coverage to your needs.
- Does credit score affect car insurance premium?
In some regions, insurers consider credit scores when determining premiums, viewing higher scores as indicative of responsible behaviour.
- Can I change car insurance providers at any time?
You can switch providers anytime. However, be aware of potential cancellation fees and ensure continuous coverage during the transition.
- How do I know whether I'm eligible for car insurance discounts?
Review your insurer's discount offerings and inquire about eligibility. Factors like a clean driving record, safety features of the vehicle, and affiliations can qualify you for discounts.
- How does driving behaviour affect car insurance cost?
When renewing car insurance, the insurance providers emphasise your driving behaviour and consider your past claim records. Following traffic rules and careful driving helps to maintain a clean driving record. Additionally, you can avail of a No Claim Bonus (10% - 50% discount on premium) on your renewal premium if you don't make any claims during the policy term.
- How do vehicle make and model affect car insurance cost?
The car insurance premium depends broadly on the type of car you buy. And it's pretty straightforward. Expensive cars have higher maintenance and repair costs; therefore, the insurance premium for such vehicles is relatively higher. In simpler words, cheaper car models may come with lower insurance premiums. Bear in mind that insurance for diesel cars may cost more than their petrol counterparts. On the other hand, you can save considerably on insurance costs if you install safety features (like anti-theft devices) in your car.
- How does the vehicle’s age affect car insurance?
Buying comprehensive car insurance policy for a brand-new car may cost more than for an old model. However, it depends on the insurance provider's policy. Compared to new cars, old vehicles cost less to repair, but they are more susceptible to damage because of wear and tear.
Conclusion
Getting the best car insurance deal is not difficult. All it takes is a little research and review. But learning the know-how and having a clear direction on to-dos indeed makes things easier.
You can buy ICICI Lombard's car insurance, which provides reliable coverage at pocket-friendly premiums.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.