You can avoid these small claims to save more on your car insurance premium 09th August 2022
With the increasing traffic and road accidents, taking a car insurance is imperative. However, car insurance premiums can be heavy on the insured person's pocket and make up most of the annual expenses if not considered carefully.
It is very confusing for most insured people whether they should make small claims like for a damaged bumper or broken tail lights. To answer this question, there are a few things to remember. In every claim made, the car owner must pay an amount called the deductible. Also, there is a no-claim bonus (NCB) which is a premium reduction by a certain percentage by the insurance company for a year where there are no claims by the policy holder.
This percentage grows bigger and bigger each year in which there are no claims, eventually reaching a maximum of 50%. So, sometimes where there are minor dents on your car, it makes sense to avoid claiming as you may lose out on a much bigger NCB. Also, if these claims keep repeating, the insurance company may label you as a risk and increase your premium even more than the original.
Here are a few tips to reduce your car insurance premium.
1. Increase the deductibles:
The most effective way of lowering your premium is to increase your deductibles over coverages. It makes no sense to pay an extremely high premium yearly, as the purpose of purchasing the policy becomes null.
2. Staying loyal pays off:
Loyalty to one insurance company will get you a higher ground than others. If there is more than one policy you might want to avail of the same insurer, the company might give you a much lower premium on the second.
3. Research and compare car insurance online:
A car insurance policy is technically a pre-discussed set of benefits for the insured. Thorough understanding and research are needed on car insurance to understand which features to avail of and which to opt-out.
4. Try to make reasonable claims:
Try to be as selective as possible with the claims you put forward to the company, as they might end up causing more harm than good.
While being smart about things to lower your
car insurance
premium, it's also essential to be aware of what racks it up. By letting your car insurance lapse, you're not only letting go of the NCB you would've previously availed, but you're also taking upon the stress of planning out and purchasing a brand new plan with a penalty added.6. Avoid car modifications:
Car modifications like expensive lights and fancy wheels can all increase your car premium drastically. However, if you're still interested in installing cool features in your car like ultrasonic sensors, night vision, etc., or any other modifications, be sure to inform your insurer before any claims as they might invalidate a claim based on this.
7. Installing anti-theft devices:
Installing anti-theft devices like alarms and steering locks in your car can significantly reduce your premium.
It's essential to be wise while selecting car insurance. Compare prices of different insurance policies and choose the optimum car insurance online India . Follow the above ways to save on your car insurance premium and increase your chances of reaping huge benefits during adverse situations.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.