Traditionally, buying a car is the second biggest achievement and indicator of success in India after buying your house. We want to buy the best available car in the market. It should have a great exterior design, plush interiors with a lot of space, all the best comfort, convenience and safety features.
But when it comes to insurance we look at all possibilities to save money, either by choosing a third party insurance, or looking at the cheapest options.
But is this how you should save money while buying your Car Insurance?
We advise avoiding such methods to save money as your vehicle insurance is very important. Instead consider employing some of the tips listed below to save money while buying a good and safe insurance plan for your car.
First, let’s understand what all is covered by a comprehensive car insurance:
- Damage to the insured vehicle caused due to accident, riots, strikers, malicious acts, earthquake, flood, storm etc.
- Loss or theft of vehicle
- Liability to third parties
- Personal Accident Cover available for owner-driver
Choosing the right plan and insurer could be very confusing as there are over 12+ insurance companies in India, over 30 plus plans, and over 20 plus unique add-on covers to choose from.
Choose the correct Insured Declared Value (IDV)
Insured Declared Value (IDV) gives an indicated value of the car in the case you meet with an accident and the car is scrapped or if the vehicle is to be considered for a total loss. So choosing the correct IDV is important. If you are a regular commuter and drive on highways we suggest you consider the higher IDV value of the car, else you could opt for a lower IDV.
So if you drive less and mainly in the city limits we suggest you to opt for a lover IDV for your vehicle.
A lower IDV will save you more as you pay a lower premium to be paid.
Avail No Claim Bonus
No Claim Bonus (NCB) is the reward to the policyholder for not making any claim before the policy is renewed. The NCB could range from 20-50% on premium payable and has to be earned by maintaining a claim-free record. NCB is also transferable while buying your new vehicle.
If you drive responsibly you could save money by getting a higher NCB and also keep your car and yourself safe.
Compare insurance costs before you buy your vehicle insurance
Today one can compare insurance plans as prices differ from company to company and plan to plan. Choosing what best suits your need will help you save some money during your Car insurance renewal. There are many online portals which allow comparing plans.
Once you decide what best suits your needs, you could check directly with the company and compare if the plan is cheaper to buy online from the insurance comparison portal or directly from the company.
Choose a reputed company over cheap plan
Keep in mind that the lowest price isn’t always the “cheapest” option. Ensure the company you choose is reliable, reputed and has a good history when it comes to settling claims. Ask your friends which company they have chosen and also you could ask your dealer from whom you bought your car.
Analyze before making a decision.
Avoid unnecessary add-ons
Depending on your driving style and routine choose Additional Covers only if required. Additional Covers likes Zero Depreciation Cover, Engine Protection, NCB Protection and Invoice Cover increases the insurance premiums.
Choose only if you need them.
Buying online
Buying car insurance online could help you save some money by using discount coupons and bank promotions. Many credit card companies offer cash backs. Read the terms and conditions carefully.