5 Ways To Optimise Motor Insurance In India
Highlights
- Top tips to keep your motor insurance premiums low
- Make regular premium payments and renew policies on time
- No-Claim Bonuses are one of the best ways to keep premium low
Insurance can be one of the tricky components to consider while purchasing a new or an old car. As per the Indian Motor Act, having car insurance is mandatory in India. It is pertinent to note that only third-party car insurance is mandatory. We tell you how you can best optimise your motor insurance to make it as cost-effective as possible, keeping the insurance premium as low as possible. Here a few tips to keep the insurance premium on your vehicle to a minimum.
Also Read: New Motor Insurance Rules Announced
Online Insurance
(Buying insurance online is a good way to keep the premium low)
A good way to reduce insurance premium is to look for motor insurance online and then choose one which fits your requirement the best. There are a lot of websites which can give you detailed comparison of insurance aggregators offering a variety of motor insurance policies. It becomes easier for you to compare prices, features, benefit, claim settlement ratio etc. So, online insurance is the way to go! Of course, this includes solid research as well.
Also Read: Types Of Car Insurance In India
Regular Payments And Policy Renewals
(Regular premium payments and timely renewals go a long way in keeping premiums low)
Another simple way to keep your premiums low is by making timely premium payments and renewing your policies on time, well before the deadline. The benefits of timely payments is that is the insurance provider may not raise the premium at the time of renewal since they do not view you as a risk in terms of premium payment. Similarly, timely policy renewal means you retain your NCB or no claim bonus and at the time of renewal, the insurance provider may not inspect your vehicle again. If they need to inspect your vehicle, they may end up increasing the premium.
No-Claim Bonus
This is one of the best ways to save money on vehicle insurance premium. For every year that you don't have any insurance claim, insurance providers are likely to offer discounts on the premium. The percentage of discount increases with each year of having no insurance claims. What also needs to be kept in mind is the fact that claiming insurance for small repairs/damages is not a good idea and if you plan to buy a new vehicle and sell your current vehicle, be sure to transfer your no-claim bonus.
Deductibles
(Choose your deductible amount smartly)
Deductibles or voluntary deductions are usually borne by the person who is holding the insurance policy, at the time of making a claim. A higher deductible means lower premium amount while a lower deductible may mean that the amount of premium might be higher. If you keep your deductible amount zero, then you will have the maximum premium amount.
Standalone Own Damage Policy
While a third-party insurance is mandatory, a motorist needs to additionally purchase a standalone own damage policy for the second and third year of owning a new car, since the law says that one year of comprehensive insurance and three years of third party insurance is compulsory. If you are somebody who doesn't use their vehicle that often then getting a standalone own damage policy may not be required. Paying for damages out of your pocket might be less expensive than the premium.
Last Updated on July 30, 2022
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