How to Get the Best Deal on Car Insurance?

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 motor insurance compared to him.

To avoid such a scenario and ensure you get a good deal on your car insurance, you first need to know what factors influence car insurance costs. Read on.

What factors determine car insurance cost?

Car insurance cost depends on your driving behaviour

When renewing car insurance, the insurance providers emphasise your driving behaviour and consider your past claim records. Suppose there are frequent insurance claim requests on your claim history. It implies that the vehicle owner has poor driving behaviour and is likely to claim damages in the future too. In that case, the insurance provider may ask for a higher premium.

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.

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.

Buying comprehensive car insurance for a brand-new car may cost higher than 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.

Now that you know the primary determiners for car insurance price, keep reading to understand how to save on car insurance.

How do you get the best car insurance deal?

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.

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.

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.

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.

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.