4 Tips To Choose The Right Car Insurance Policy – News18
Curated By: Business Desk
Last Updated: November 11, 2023, 17:20 IST
Do a lot of research before opting for your car insurance.
While buying or renewing a car insurance policy, there are certain tips you need to follow to save money.
If you are already a car owner, you must be aware that there are many kinds of expenses one needs to keep in mind. This also includes vehicle insurance premiums. If you have a luxurious car, then you might be paying a higher sum of insurance. As per the laws of the country, insurance is now mandatory. The purpose of having it is that the insurance company compensates for the damage caused to the vehicle in case of an accident. It also covers injury or death of a person due to the insured vehicle. Make sure to not make decisions in haste, as it can lead to you choosing the wrong policy, for which you will have to pay more and get fewer perks. If you are shelling out a lot for your vehicle’s insurance, there are a few tips to reduce the premium and save money. Let’s take a look at them.
Research is the key
The more knowledge you have, the more informed you will be able to select the right insurance policy. To gain knowledge and information, make sure to engage in lots of research. You can do this from the comfort of your home. Check out various websites, and see informative videos on the internet. This will help you in choosing the cheapest plan, which will meet your needs.
Understand what the insurance covers
It is important to note that car insurance generally has two parts. One is third party damage and the other is the damage to your own vehicle. While it is mandatory to take third-party cover, self-cover is for you to choose. Insurance for your vehicle will cover various losses to the vehicle and driver which can be caused due to accidents, fire or waterlogging. There are various add-ons available, which can lead to higher premiums. Do not buy add-ons that you do not require.
Pay-as-you-drive insurance
Pay-as-you-drive is a usage-based car insurance and is a new concept in India. Traditionally, the insurance of a vehicle is determined by the model of the car and not by the driving pattern of the vehicle owner. The new insurance model focuses more on driving behaviour than usage. Calculating the premium based on the distance covered by your vehicle will reduce the premium cost. If you are someone who drives less, then this option is the best for you.
No Claim Bonus
When no insurance claim is made in a year, the insurance company generally offers a No Claim Bonus (NCB). It offers a discount of 20 to 50 percent on the insurance policy premium for next year. If you have collected NCB for many years and are thinking of buying a new car, then NCB can be transferred.
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