Due to dangerous driving conditions, third party insurance is mandatory for every vehicle on Indian roads. It ensures the overall safety of persons involved in a road accident.
As we all know, it is very difficult to land much for a car insurance plan. Maintaining vehicle insurance premiums before the increase is a game that everyone wants to win, but nobody knows the rules. Here are 9 car insurance secrets that will help you save money on your car insurance premiums.
1 – Your car model
Your car model will have a direct impact on your insurance premium. Your car insurance provider will not say, but there is a car classification system for each model and do. If you are planning to buy a new car, you need to remember this point and feel free to ask your insurer about it.
2 – Being good has its value
You may be surprised that the wrong driver will have to pay 40 percent more than his or her car insurance premium if he or she is guilty in case of an accident.
On the other hand, if you are a good driver, you do not have to worry about it. If you are a good driver, you are less likely to make a claim. If you do not file a claim, you will be rewarded with a No Claim Bonus.
3 – Comparison is the key
Before you finalize a specific car insurance plan offered by a particular insurer, have you done your research? We’re not asking you to turn into a detective. All we’re saying is to be uber smart. Compare the insurance premiums charged by different car insurance providers. The premiums may vary depending on the type of motor insurance plan. The better the insurance, the higher your premium will be. Before you finalize it, make sure you have carefully read the printout of your insurance plan.
4 – Assess your voluntary deductions
Voluntary deduction is the amount that the insurance buyer has to pay if there is a traffic accident. If the voluntary deduction is zero, you will receive the full amount of the claim in case of an accident. If you have an insurance policy with a certain amount as a voluntary deductible (i.e. a certain amount that you will have to pay out of your pocket), your insurer will pay the remaining amount.
Your voluntary deduction and reverse charge bonus. The higher your voluntary deduction, the lower the amount of your car insurance premium will be.
For any voluntary deduction, you must carefully assess all the consequences.
5 – The installation of security devices can reduce
Safety devices serve a dual purpose when installed in a car. First, they protect your car from theft. Secondly, it helps reduce your insurance premium. Security features such as airbags, security alarms, etc. can affect the determination of insurance premiums by insurers.
6 – Skip claims for small expenses
If the policyholder makes no claim on his or her car insurance plan, this entitles him or her to a bonus without claim for the year free of claims. KBC accounts for about 20 percent of the insurance premium.
If you apply for small charges, such as small repairs, you will not be entitled to any NCB. The key is to analyse the amount of NCB you can earn and compare it with the repair fees. If the repair fees are higher than the NCB, you can apply for the same.
7- Keep your policy active
When your policy expires, it means that it’s gone. Inactive policies do not qualify for a bonus without a claim. Therefore it is very important to keep your insurance plan active.
8 – Expensive gadgets can wander their insurance premium
If you have an expensive gadget installed in your car, it can increase your insurance premium. Also, if you have made any modifications to the car, such as rear spoilers, aluminium wheels, external modifications, etc., this will affect your insurance premium. The only reason for this is your insurer will analyze your driving style based on such modifications and adjustments. And, the result will not be in your favor when it comes to deciding on the amount of insurance premium.
9 – The road safety organizations are
Having membership of road safety organisations such as the Automobile Association of India is very beneficial in reducing car insurance premiums. In addition to other benefits, you can get a discount on your car insurance premium.