Complete look into Affordable Car Insurance Plans   27^th April 2021

Do you know the most significant factor that drives insurance purchases in India? It is not the services or the goodwill of the service provider but it is the affordability. Affordability matters to the customers in every type of insurances, be it life, personal accident, or as a matter of fact; car insurance. Whether you buy car insurance online or offline, you will always look at affordability

Important factors that affects affordability of the insurance policy:

1. Segment of the car: The segment of your car that you are insuring plays a crucial role in deciding whether the premium will be cheap or expensive. An expensive car is ought to attract costly premiums.

2.Facilities: The number of services you are trying to acquire in the insurance also directly affects the premium. You need to identify what services are highly crucial for you and then take an insurance plan accordingly.

3.Insured Declared Value: The IDV needs to be paid attention to before going for an issuance. The manufacturer’s price minus the depreciation is your IDV. It directly affects your insurance affordability as well.

4.Customization of plans: When you buy car insurance online or offline, there is an option for you to customize your plan. You can customize the services as per your requirements and needs. This mainly affects the plan’s pricing scheme; if you add more services to your plan, then it is obvious that your premium will increase. This directly changes the factor of affordability.

5.No claim bonus also affects affordability: You can receive the no-claim bonus in the next year only if you don’t claim in the current year. Sometimes what happens is that we tend to claim small amounts for our car repairs that lead to lapse of no claim bonus. The main losing factor here is that you lose the significant advantage of NCB in the long term for the petty short term expenses. NCB also affects the resale value of your car because it ultimately depicts the condition of your car.

6.Claim frequency: When providing you with the renewal premium of your car policy, the insurers look at the number of claims made. If the number of claims made is high, the premium amount is going to be high as well. They think that you tend to make claims even for very small repairs. This indirectly affects your affordability.

Wrapping up:

There can never be a fixed list of factors that will affect your plan’s affordability when it comes to insurance. But, you don’t have to worry as good companies will make your task simpler. However, all you need to clearly know is your requirement.

Here’s some highlights to add value to the piece:

● Try insuring your car with the same company that manages your other insurances. This way, you will be entitled to receive a discount.

car insurance

● Ultimately, drive safely and responsibly!