Motor insurance premiums are set to rise as third party motor insurance covers have undergone an increase as per regulatory guidelines release recently. Amid a scenario where inflation remains persistently high, an increase in car insurance premium further adds to the expenses. However, by adopting some simple measures, you can reduce the impact of the increase in motor insurance premiums.
- Purchase motor insurance cover online: The online medium has brought a sea change in the way we go about our purchase pattern. Today, one can save a lot by searching, comparing and purchasing online. The same applies to motor insurance. Purchasing insurance online can not only save money but also save your time as it reduces the time required to visit insurance company's office or relying on an agent. Insurance companies offer instant quotes as well as beneficial packages to encourage customers to buy motor insurance policy directly from their websites. You can thus compare and select a policy that meets your requirements.
- Opt for DeductiblesDeductible is an amount that you pay out-of-pocket for the occurred expenses. There are two types of Deductibles; Compulsory Deductible and Voluntary Deductible. Compulsory Deductible in motor insurance refers to the part, where you are required to pay a pre-decided amount while the insurer will pay the rest of the expense. In the case ofVoluntary Deductible, which is an additional deductible, you agree to pay a certain portion at the time of claim and in return you get an additional discount on your insurance premium. You can decide on the expense of claim that you can pay for and in the process benefit from lower premium
- Avail No Claim Bonus: No Claim Bonus (NCB) is offered to customers who have not registered claims during the preceding year of the insurance cover. NCB starts from 10% for a year of no claim and increases with each subsequent year of no claim going up to 50%. Apart from reducing your car insurance premium, the NCB discount can also be transferred to your new car when you opt to buy one. Since the premium of a new car is much higher than an old car, NCB will allow you to make considerable savings on the insurance premium of your new car.
- Installation of Anti-theft devices in your vehicle: With vehicles being vulnerable to theft, installing anti-theft devices in your vehicle can be a proven worthy. Insurance companies also encourage their customers to install anti-theft devices as a precautionary measure. Taking one step ahead, insurers now offer special discount on the insurance premium for installing such devices in cars. Therefore, if you are planning to buy a new car, opt for car with prefixed anti-theft device. You can otherwise buy these devices separately in the local market and set it in your vehicle. Moreover, if you are a member of bodies such as Automobile Association of India or Western India Automobile Association (WIAA) which are empowered under the Motor Vehicles Act, you can get special discount on insurance premium.
- Declare the correct IDV for your vehicle Insured Declared Value (IDV) refers to the depreciation applied on your vehicle over the manufacturer's selling price. It is the maximum amount that an insurance company will pay in case the vehicle needs to be replaced. However, seeking higher than reasonable IDV would result in increasing the insurance premium on the car instead of giving any benefit. Therefore, it is advisable to declare an appropriate IDV to avail some discoun
Taking these simple steps is an effective way to reduce your recurring expenses on the vehicle. However, fuel consumption also causes major expense. Following speed limits, avoiding sudden braking or rapid acceleration, switching off the engine at long duration signals etc. will help you reduce fuel related expenses.
So go ahead, follow these basic steps and enjoy the drive in your favorite vehicle.
- Deductibles: Most health insurance policies have a deductible clause as well. As in the case of Co-Pay, Deductible is the amount of expense that you need to pay before the insurance company will pay for the balance amount. In most cases, it is provided as a voluntary option for the insured to choose, including the amount of Deductible that you as a policy holder would be willing to pay from your own pocket. The insurance company on its part charges a lower premium to the policy holder availing a deductible.
Equipped with information on these intricacies of health insurance, you can choose a policy that will work at the time of claim settlement. Today, most insurance companies provide detailed information on health insurance policies including their features, exclusions, terms and conditions etc. You can also specifically ask for this information in case you are purchasing the policy offline through the company or agent.
So don't choose your health insurance policy merely on benefits, but look at the exclusions and policy terms as well. These may turn out to be more important during claim settlement than the policy features.