Here are the 6 ways to reduce your Car insurance premium
Car insurance premium has been on the rise in the recent days due to many factors such as increased loss ratio, rising maintenance costs and several other factors. Many of us are dissatisfied with the higher car insurance premiums and are looking out to reduce the car insurance premium every year. Most of you might have been maintaining your car in good condition and the premium paid every year is not justified as no claim is made during the policy period. Let us look at the below ways to reduce the car insurance premium:-
1. Voluntary Excess/ Deductible:
Excess or deductible is the amount which the insured promises to pay in the event of a claim. Under this a part of the risk is passed on to the insured and the insured is made liable to a percentage of claim amounts. Each insurance policy has a compulsory deductible or excess up to Rs.2000 depending on the cubic capacity of the car. The voluntary excess is the amount which the insured promises to pay in the event of the claim over and above the voluntary deductible or excess mentioned under the car insurance policy.
By opting for higher deductible the premium can be reduced to a maximum of 35% on the own damage premium or Rs.2500 whichever is less. The maximum voluntary deductible to be borne by the customer is limited to Rs.15k under the Indian Motor Tariff.
2. Insured Declared Value:
The other option to reduce the premium in car insurance is to opt for the lower Insured declared value in the policy copy. Lower the IDV, lower would be the premium in the car insurance policy. A small percentage of the own damage premium can be reduced by reducing the insured declared value in the insurance policy copy. It is important to maintain a balance between the IDV and the premium to be paid so that at the time of claim settlement the claim amount is not too less.
The riders or add-ons are the extra coverage at an extra premium provided to your car by the insurance company. These add-ons include Bumper to bumper cover, Consumables cover, Key protection cover, Road side assistance covers etc. The premium for these add-ons is calculated as a percentage of the insured declared value. By reducing the number of add-ons covers and opting only for the necessary covers your car insurance premium can be reduced drastically.
4. Online purchase:
These days insurance is available online easily due to the advancement in the technology. These online portals offer huge discounts to the customers compared to the offline agents. These discounts are possible due to the fierce competition in the market and the involvement of less paper work with the online portals.
We at Policy Bachat offer up to 80% on your car insurance premium from the top general insurance companies.
5. Anti theft device:
Cars fitted with Anti theft devices are eligible for discount in the own damage premium. The anti theft device in your car helps in tracing the car in case of theft compared to the car without an anti theft device. The cars fitted with anti theft devices are eligible for a discount of 2.5% on the own damage section of premium subject to a maximum of Rs.500/-
For midterm installation of the anti theft device a pro rate proportion of the premium discount is calculated as per tariff for the unexpired period is allowed under your car insurance policy.
6. AAI membership:
For a valid and recognized membership with the Automobile Associations, a discount of 5% on the own damage section subject to a maximum of Rs.200 for a private car is allowed in the Indian Motor Tariff. Members of Automobile Association’s such as Automobile Association of South India, Automobile Association of Eastern India are eligible for the discount under the own damage section of the car insurance.
The Car insurance premium can be reduced by using any of the above or all of the above tips. You are advised to exercises caution at the time of selecting the voluntary deductible as it implies the amount of claim you will be bearing in case of an accident to your car.
For best car insurance quotes visit www.policybachat.com and get the best car insurance renewal quotes from the top general insurance companies.