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Insurance Article

Smart Ways to Buy Low Cost Car Insurance

July 08 2012
Car insurance premium is an unavoidable expense. The amount depends on various factors including the value of vehicle.

For maximum protection of a car, you need to buy at least comprehensive cover. Generally a comprehensive car plan will provide financial protection against damage or loss incurred due to natural calamities, man-made calamities and third party liability. Unfortunately, a present day standard insurance plan is expensive. Buying low cost car insurance may seem to be a far-fetched dream.

There are some ways that may reduce car insurance policy premium. Here are some of the most effective ways to follow:

The Basic Car Insurance Requirements

It is crucial to know what you want from an insurance plan. As a vehicle owner, you may have some special insurance requirements to ensure protection to your vehicle. Understanding these requirements will help you buy the best policy at affordable price. Regardless of whether you are planning to buy a new insurance plan or renew the existing one, it is crucial to understand what your actual insurance needs are.

This is easy if you determine some important factors such as deductibles, cover options, budget, etc. that suits your vehicle. Some of the most common cover factors include medical, third party liability, collision, and lease reimbursement. You may even check out with the insurance company for the availability of property and comprehensive car cover against various unforeseen situations such as man-made calamities and natural calamities.

(IDV) Decreasing Insured Declared Value

Also referred to as insured declared value, IDV is the highest amount to be paid in the event of total loss. IDV reduces every twelve months. Car owner can reduce it further. Decreasing the amount will automatically reduce the insurance premium.

Remove Extra Deductibles

In India, there are a number of extra deductibles and cover options car owners tend to purchase. These are expensive and may add up to the overall premium costs. It is not difficult to avoid these deductibles from a car insurance plan. All you require doing is understand the avoidable deductibles. For instance, you can eliminate the collision cover amount from your insurance plan.

This is one of the most common deductibles that cover damages incurred to the insured individual’s vehicle due to the mistake of insured. This may be considered an unnecessary or fancy cover. Car owners who have learned how to drive a car and practise safe driving may skip this cover. Opting out of these covers can save you significant amount of money on insurance premium.

Voluntary Deductible

A vehicle owner may adopt voluntary deductible to reduce insurance premium costs. What is deductible? It is the amount that is payable by owner of vehicle for each claim made.

Automobile Association of India

Indian insurance companies may offer discount on car policies for members of AAI (Automobile Association of India).

Anti-Theft Devices

Vehicle owners with high quality anti-theft devices installed in their cars can get discount on car insurance premium. It is best to install devices approved by ARAI.

Reducing Limits of liability

Insurance companies have a standard cover value offered to vehicle owners. This is offered for the third party liability cover. It amounts to about 7 Lakhs INR. However, a vehicle owner can reduce this amount. Once can go for the minimum amount of cover required. This amounts to only 6,000 INR. This saves you a lot of money.

No Claim Bonus

One of the best ways to get low cost car insurance is to maintain a track record for ‘no claim’ period. This will help you reduce cost of insurance premium costs. Collective discount can be received by car owners for not making claims. This amount of discount offered as ‘no claim bonus’ may range between 10 per cent and 50 per cent.

Study

Buying an insurance plan without understanding what is being offered can be a waste of money. Prior to buying an insurance plan, you need to be sure about the cover being offered, the facilities, add-ons, premium costs, and most importantly, the claim process. Also know about various types of plans offered. Studying these plans closely will help you know about the one that best suits your requirements and budget. People have been able to save up to 10 per cent easily by studying and comparing car insurance plans.

Car Insurance Quote Online

This is yet another smart way to save money when buying car insurance plan. The car insurance quote online facilities are available for customers, these days. Comparing these quotes can help them understand the difference between various policies offered in the marketplace and premium costs. These online facilities can save buyers a significant amount of money on insurance plans.

Profession

Your profession may become a great advantage for you when it comes to buying low cost vehicle insurance plan. Insurance companies in India offer special discounts to buyers belonging to specific professions such as chartered accountants, doctors, etc.

Investing in a car insurance plan is mandatory in India. You may invite trouble by driving a car on road without carrying legal car insurance. Hence, it is vital to buy car insurance along with your car purchase. If you have thought of avoiding it due to high premium costs, there are several smart ways to save money. You can follow the tips mentioned above to enjoy significant cut down on premium costs.

Buying online is the perfect way to save money on vehicle insurance policy. Using quotes and visiting official profile of a reputed insurance company will help you buy the best plan without having to burn a hole in your pocket. Buying one will also save you from legal liabilities.

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