Are you thinking to buy Car Insurance? Know 5 great tips to reduce premium
Avoid availing small claims in car insurance. By doing this you will get the benefit of NCB i.e. No-claim Bonus.
Minimum third party insurance required.
Car Insurance: When you buy a car, apart from maintenance, you have to pay a hefty amount every year for insurance. Car insurance has two components. The first component is third party damage and the second component is about self damage. According to the Motor Vehicle Act, third party cover should be in the car insurance at all times. Self insurance depends on your own convenience. In such a situation, the premium of your car insurance is decided on the basis of coverage. In this article, let us finally know how the premium of car insurance can be reduced.
If you buy basic car insurance, it basically covers third parties. The higher your coverage, the higher will be the premium amount. In such a situation, include add-ons according to your need. For example, if there is no problem of water logging in your area, then what is the need to buy engine protection. Similarly, there are dozens of add-ons. When buying insurance, pay attention to these add-ons and buy only what you need.
Pay the premium based on the amount of time the car will last
A new type of policy has started in the Indian auto sector. Under this, premium has to be paid on the basis of how many kilometers your car travels. You get all the facilities under the policy. In such a situation, if you drive less car then you can buy such a policy. However, only a few insurance companies have been allowed this by IRDAI.
Modification of the car increases the premium
If you are getting any kind of change done in your car, like getting a CNG kit installed, then you will have to inform your insurer. If the modification information is not given to the insurance company, your claim may be rejected later. Insurance sector experts say that if you change the engine of the car, change the wheels, update the interior, then in such circumstances your premium amount increases.
Take advantage of NCB instead of small claim
Avoid availing small claims in car insurance. By doing this you will get the benefit of NCB i.e. No-claim Bonus. This amount varies from 20-50% of the premium amount. If you do not claim insurance for the whole year, then you will get a discount of up to 20-50 percent in premium for the next year if you buy insurance from the same company. In such a situation, before claiming a small amount, check whether it is more beneficial to claim or will get more benefit on NCB. If you have taken advantage of NCB for many years and are thinking of buying a new car, then NCB can be transferred.
Compare Online Then Buy Policy
Apart from this, the easiest way to reduce premium is to compare online. Enter your requirement on the internet and find out which insurance company is charging the premium for that requirement. Then select the best plan for you. If you pay the insurance on time, then you will get relief in premium. The insurance company can increase the premium amount on late payment. Online cover can be purchased to ensure that premium payment is on time.
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