The internet is a very powerful tool of knowledge and information that is easily available to everybody and anybody. This gives people a chance to do their own homework before investing their money on anything. And, they can do all of this right from the comfort of their house. We really couldn’t ask for more, could we?
So why not use this invention to do something important like comparing car insurance policy? After all, safety comes first. With easy access to car insurance premium calculators, which helps compute the potential savings in premiums and offer the best choices, you will not need an expert’s guidance or an agent to help you get the best deal.
How does car insurance work and how to reduce premiums?
Car insurance offers financial reimbursement by way of claim settlement in case of a car mishap resulting in repair costs, spare parts replacements, personal accident cover and third-party legal liability. Some companies also provide a towing facility in case of car breakdown with 24*7 road assistance. This lump sum amount entails regular premium payment by the insured to the motor insurance company. There are various tools available online like an insurance calculator that compute the cover needed and car insurance quotes that is transparent in nature, thereby allowing you to make a better decision. Now, let’s take a look at how you can pay less and still get the best:
- Compare to get the best coverage: It is very important to compare auto insurance policies before you pick one. This will allow you to save more and avail add-ons like riders and benefits on your plan. Comparing such policies manually can be very difficult, therefore, you are recommended to use car insurance premium calculator online.
- Fine-tune your deductible on the higher side: Insure to the extent required to handle unacceptable losses. Else one would end up paying for insurance one does not need.
- Combine policies: Assume you own a two-wheeler and a four-wheeler; in this case, you may avail some benefits if you select the same motor insurance company for both your vehicles.
- Decrease one’s coverage: Reducing one’s coverage to the bare minimum will help reduce premiums. There is the Insured’s Declared Value (IDV) i.e. the current market value of your car after adjusting the current manufacturer’s listed selling price of the vehicle with depreciating percentage.
- Drive safely and responsibly: The premiums can be kept low by preventing insurance claims by driving safely. However certain motor insurance companies monitor the insured’s driving habits. For example, Bajaj Allianz General Insurance Company offers a vehicle tracking and monitoring device with DriveSmart Telematics Service.
- No claim gets you a gain: One can also reduce the motor insurance premium by ensuring a claim-free record as the accumulated No Claim Bonus can be converted into a discount on the Own Damage Premium.
- Voluntary excess: Another way of reducing premium cost is to opt for voluntary excess, i.e agreeing to bear a certain amount of loss from each claim.
Source: Bajaj Allianz General Insurance
- Install the latest technology: One can avail additional discount in premiums in case the vehicle is fitted with anti-theft devices, approved by the Automobile Research Association of India (ARAI). The amount of discount is usually 2.5% of the premium to a maximum of Rs.500.
Conclusion
The car insurance policy is not only necessary, but also unavoidable. Hence, it is important to choose a policy that does not cost a bomb and guarantees to protect you in a safety net, in the form of coverage it offers. So, be wise and make an informed decision. Good luck!
