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Quick Tips to Purchase the Best Car Insurance plan

07 November, 2016

Having a car insurance policy in India is mandatory by law. It is for providing you financial protection in times of accidents and other unfortunate events. However, general observations shows that people tend to overlook the importance of availing a car insurance policy. The main reason is the cost behind purchasing it. But you shouldn’t have to give up on such an important protection plan just to save a few bucks. Also, there are ways that will assist you in saving a good deal of money on car insurance premium.

The price of each policy differs, depending on various factors. It can be the make and model of your car, driving record, location, etc. Thus, to make the car insurance policy budget-friendly, we have put together a few tips.

Shop around and compare Policies:

  • As stated earlier, prices differ from provider to provider, so shopping around is absolutely worth it.
  • You can get quotes from different providers online.
  • While comparing different policies, the price should not be the only determining factor. Look for aspects such as the financial strength of the insurer, goodwill, claim settlement ratio etc.
  • If you are buying a new vehicle, check for the cost of insurance before making a purchase. Premiums are majorly determined by the cost of the car, safety record, the cost to repair it etc.

Look for higher deductibles:

  • A deductible is an amount you pay before your insurance provider starts compensating.
  • If you choose a higher deductible, it is possible to considerably lower the cost of premium.
  • Ensure that you have enough funds to pay at the time of making a claim.
  • Compare quotes with different deductible levels before making a decision.

Buy multiple insurance policies from the same company:

  • Although, it pays to shop around. Many insurance providers offer discounts to loyal customers.
  • So, if you are availing two or more types of insurance or have multiple vehicles to insure, it is advised to avail it from a single insurer. Maintain a good credit history:
  • Maintaining a good credit history helps you in lowering the premium costs.
  • Some insurance companies look at the credit history of the policy taker to set the amount of premium.
  • So, clear of all your financial debts. Ensure that you do not have any pending credit card bills. Applying for more than one credit cards can negative effect your score.
  • Ensure that the information you provide is true and accurate.

Take benefits of various Discounts:

  • Companies offer discounts for multiple reasons. For example, if you have a safe driving record or if you drive less than an average number of miles per year or taken a driver’s education programme, you will be eligible for various deals and discounts from the provider’s end.
  • If you have safety features such as airbags, anti-lock brakes, anti-theft devices, and alarm systems installed in your car, the premium will come down to a great extent.
  • But always remember, that discounts aren’t the only way to save money on insurance policies. Some insurance providers might not give discounts but still offer a lower overall price.

Review your coverage:

  • At the time of the renewal of the policy, you are required to review the coverage amount. The review is done to ensure that your policy is coping up with all your needs.
  • For example, if the vehicle you own isn’t worth the comprehensive cover, you can choose to skip the same.
  • Consult your agent to better understand the worth of your car and to choose a policy that best suits your needs and budgets.

Group insurance policy can further help in reducing the cost:

  • A good car insurance policy will ensure that you don’t have to any substantial amount in case of the event of accident or other unfortunate event. Also, it offers essential covers such as third party liability, which will save you from legal liabilities arising out of damages caused to another party.

Royal Sundaram is renowned for offering the best car insurance policy suitable for your needs and budgets. Our team of experts is here to help you find the best policy at extremely affordable price.

If you avail an insurance policy through a group plan from your employer, there are fair chances that it might help in a premium reduction by your provider.