With living arrangements expanding faster than ever, there has been considerable increase new places to live and work. While the public transport network is seen to catch up with this pace, there is an ever-growing demand for personal vehicles. While many prefer two-wheelers for its convenience, some even opt for four-wheelers for its comfort. But your it doesn’t end after buying a vehicle. You need to purchase an insurance cover too.
The Motor Vehicles Act of 1988 makes it mandatory for all vehicle owners to have a vehicle insurance policy. A third-party motor insurance cover is the minimum requirement as per the law and you can buy it online too. Be it a private vehicle or commercial vehicle insurance, it is a mandate for all. Not only motor insurance helps adhere to regulatory compliance, but also in protecting your vehicle for unexpected damages due to accidents or other damages. A motor insurance policy can be customised according to your needs using add-ons.
But when loading add-ons to your insurance cover, it can surpass your allocated budget. This article enlists some nifty tips that can help you keep the premium in check. Let’s have a look –
Comparing insurance plans: As obvious it might seem; it is the most ignored step when selecting a motor insurance policy, but in fact should be the starting point in the selection process. While offline insurance facility does exist, comparing and buying vehicle insurance online gives you the freedom to carry this process at your convenience. You need to compare the various available plans not only based on their price, but also other features like coverage, additional benefits and more. Further, comparing these policies will help you pick a plan that checks all the right boxes that are suitable for your vehicle’s insurance coverage. In this process, using the vehicle insurance calculator can come handy. This is an efficient tool that aids the comparison process among the various plans offered by the insurance company.
Avoiding raising a claim for minor repairs: When you renew your vehicle insurance coverage, the insurer offers a bonus if you have not raised any claims during the policy tenure. This facility is called as the No-Claim Bonus or NCB. This concession is based on the own-damage premium and is only available for comprehensive policies. The amount of NCB is starts at 20% and goes all the way up to 50% for every consecutive claim-free policy year. If you raise claims for small repairs, you will lose on these benefits at the time of renewal.
Pick suitable add-on covers: Add-ons are additional policy benefits that enhance your policy’s scope. Since they are additional coverage you can opt for, they increase your premium too. While there are many different add-ons to choose from, buying only those that are useful is necessary. Cutting down on unnecessary add-ons helps you save premium.
Selecting adequate deductibles: Deductible is that portion of the claim which you, the policyholder, are required to pay at the time of a motor insurance claim. There are two types of deductibles – the compulsory or standard deductible and voluntary deductible. As the name suggests, a voluntary deductible is optional and can be opted over and above the standard deductible. Wisely selecting a voluntary deductible as part of your motor insurance policy’s terms will help further reduce your insurance premium.
Keep these tips in mind since they can help you save premium and your hard-earned money while availing of comprehensive coverage for your vehicle. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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