Having car insurance is not only crucial but also mandated by law. So, the convenience of owning a car comes at a cost. In addition to maintenance, one is responsible for paying car insurance premiums. For instance, if one has opted for a comprehensive car insurance policy, it consists of two parts, the “third party” and “own damage”. Naturally, the premium cost will be higher.
Nevertheless, understanding the factors that affect vehicle insurance policy premium is essential if a customer wants to cut down on the amount of money they spend on car insurance.
However, there are some simple tips to reduce the cost of your auto insurance.
Here are some easy strategies to help lower the price of car insurance policy premiums:
The vehicle model directly affects the cost of the car insurance policy. In reality, the type of automobile is a key factor in determining the premium cost, whether purchasing standalone damage, third-party liability, or comprehensive auto insurance.
For example, insurance premiums are more for newer or larger engine cubic capacity vehicles than for older or lower engine cubic capacity vehicles. The market value of an automobile, which establishes the Insured Declared Value (IDV) – essentially decides how much the auto insurance will cost.
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The likelihood of your automobile being stolen is reduced with the installment of security equipment. For instance, security alarms, brake locks, steering wheel locks, and other similar safety equipment are some of the most utilized modern security features.
The insurer will reduce the cost of your auto insurance if these anti-theft gadgets are installed on the car as a measure to avert theft. However, ensure that the Automotive Research Association of India has approved the security gadgets that are to be installed.
If one has a history of traffic violations or accidents, the auto insurance provider might view them as a high-risk client, and the insurance prices might go up. However, if one strictly adheres to the law and operates their automobile responsibly, they may be able to obtain auto insurance at a reasonable cost.
Additionally, if an individual doesn’t raise an insurance claim during a policy year, insurance firms will also provide a No-Claim Bonus (NCB). If one goes five or more years without making an insurance claim, they can receive a discount of up to 50% during the renewal of their insurance policy.
After an accident, an individual has to pay a certain amount out of pocket for car repairs and other costs. The insurance provider will pay the entire claim if one chooses a zero voluntary deduction. But if they choose a voluntary deductible, the individual has to pay a certain portion of the claim from their pockets.
In this regard, do remember that the voluntary deductible’s relationship to the cost of the premium is inverse. Hence, the cost of automobile insurance will be less if one chooses a large optional deductible. As a result, choosing a high optional deductible is advised if one wants to pay a lesser premium.
Conducting adequate research on various insurance plans offered is a fantastic approach to make sure one chooses the most suitable auto insurance plan. Before looking for a good plan, one must first evaluate insurance needs. After that, they can proceed to buy one depending on their needs.
One can also buy car insurance online. Compared to other offline insurance plans, these can come with benefits like fast claims, cashless repairs, self-inspection, etc. Nevertheless, one can also use a car insurance premium calculator to compare and purchase a suitable plan.
The insurance policy becomes deactivated when the auto insurance expires. There is a grace period during which one has to renew the policy.
One will fail to get any benefit from an inactive policy if anything happens. This is why it’s important to renew your motor insurance policy promptly. Additionally, timely renewal of insurance plans will let you use your accrued No-Claim Bonus to lower the cost of the policy.
One would benefit if they paid for the repairs out of their own funds in case of any minor damage. One can preserve the NCB by taking care of the charges out of their own money. It is essential to note that it would be more financially wise to file a claim if the repair costs were greater than the NCB.
The car insurance premium may increase if one fits particular gadgets or accessories. Additionally, any changes one makes to their automobiles, like adding alloy wheels or changing the exterior, may increase the prices of auto insurance premiums.
The premium amount for the car insurance policy depends on various factors. Those looking to reduce the premium and thus make car insurance more affordable can follow the simple tips mentioned above.
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