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How to Get an Affordable Car Insurance Policy & Minimize its Cost?

insurance policy with third party liability cover as a prerequisite to taking it out on public roads. But car insurance offers much more than the compulsory third party insurance cover. All motor insurance providers in India offer a comprehensive policy that protects your car from all kinds of damages or risks in addition to the third party insurance. There is a stark difference in both the coverage and thus,  the decision to buy a liability-only policy or comprehensive car insurance policy should be taken as per your needs.

 

No matter which type of car insurance coverage you opt for, it should fit well within your budget. Several insurance companies in India offer car insurance policy online with different features and benefits. It is crucial to analyse your car insurance needs and pick a policy that best fulfils them without being expensive. The good part is that car insurance policy is available in different ranges and you can easily choose an affordable car insurance policy online. 

 

11 Tips to Get an Affordable Car Insurance & Minimize Its Cost

 

Here are some of the ways through which you can get an affordable car insurance policy online as well as minimize its costs:

 

  1. Compare Car Insurance Plans Online

If you are looking to buy an affordable car insurance policy, you must compare insurance plans from different insurance companies online. Several online insurance brokers allow car owners to compare multiple car insurance plans online based on factors, such as insurance cost, insured declared value (IDV), add-on covers, etc. You can find your ideal car insurance policy online by comparing various plans at insurance brokers’ website. Moreover, these brokers also allow you to buy car insurance policy online.

 

  1. Check Car Insurance Rates When Buying a Car

Car insurance policies costs vary as per the make and model of the car. Higher-end car models are not only expensive to buy but also attract a higher car insurance price. This happens because the insured declared value (IDV) of the car increases with an increase in the cost of the car. The IDV of a car is directly proportional to its car insurance policy rates. Therefore, if you don’t want to pay too much on your car insurance, you should check the car insurance rates before buying a car. For example, the car insurance price for a Honda car will be less than an Audi car because an Audi is expensive than a Honda car. You can check the car insurance rates for a specific car model online and choose a car whose expected car insurance price fits within your budget. 

 

  1. Increase Your Deductibles

Another great way to reduce your car insurance costs is to increase your policy deductibles. Of course! With a higher deductible, you will have to pay a higher share of the claim amount during claim settlement. But if you increase your deductible to an amount that you can easily afford, it would not put a burden on your finances but instead, help you to save on your car insurance premium. This is because motor insurance companies offer savings options to car owners who voluntarily opt for a higher deductible than compulsory.

 

  1. Savings Options

Most motor insurance companies in India offer premium saving options while buying a car insurance policy online. These discounts may vary from one insurer to another but can help you to save big on your insurance premium. Some insurers offer discounts to car owners if they buy car insurance policy online or if they install a safety device. Several insurers also offer savings options to people who own a vintage car or have a membership of a recognized automobile association. You can check with the motor insurance company for savings options before buying a car insurance policy online.

 

  1. Check for Special Discounts

Some motor insurance companies may offer special discounts to different kinds of car owners. These savings options may be related to the car owner’s occupation or professional groups. For instance, your insurance provider may reduce your premium amount if you are defence personnel. Similarly, if you belong to a certain group or organisation, your premiums may be reduced.

 

  1. Build Your No Claim Bonus

No Claim Bonus (NCB) is one of the best ways of saving on your car insurance premiums. It is a discount on the premium amount that the car owner gets for driving his car mindfully and not raising any car insurance claims in the previous policy year. The NCB can be earned from 20% to 50% if no claims are made consequently for five years. So drive safely and pay half the price for your car insurance policy online with the No Claim Bonus.

 

  1. Buy Multiple Insurance from the Same Insurer

Several insurance companies offer a discount to their customers if they buy multiple insurance products from them. For example, if you buy car insurance, health insurance and home insurance from the same insurer, the company may reduce your premiums. Similarly, if you bundle your car insurance policy or buy car insurance for all your cars from one motor insurer only, you may save huge on the premiums. Make the most of this option and reduce your car insurance costs.

 

  1. Living in Non-Accident-Prone Areas

The place where you live also plays a big role in reducing your car insurance cost. Car owners living in places that are not accident-prone or are considered safer have to pay less for their car insurance policy online. This is because the chances of your car getting damaged are greater at places that witness heavy traffic or are prone to accidents or natural calamities. We know that you are not going to change your city just to reduce your car insurance costs. But if you are planning to relocate to another city, you can choose to shift to a city which is not accident-prone or witnesses a lot of traffic daily. For example, buying a car insurance policy online in smaller cities will be more affordable than in metro cities.

 

  1. Pay As You Drive Insurance

If you don’t want to spend too much on your car insurance premium, then you can opt for Pay As You Drive Insurance for your car. This kind of insurance charges premium to car owners based on the total number of kilometres covered. The insurance company will install a telematics device in your car which will track the total distance covered as well as your driving habits. Not only the motor insurance companies charge lower premiums under this type of car insurance but they also provide savings options to car owners opting for pay as you drive insurance.

 

  1. Remove Unnecessary Covers

Add-on covers work on the concept of providing additional protection to the insured car in exchange for a higher premium. A variety of add-on covers can protect a car in multiple ways but not all covers are relevant for all kinds of drivers. For example, if you have a brand new car, the chances of your car’s engine or tyres getting damaged are less. Therefore, you don’t need to buy engine protection or tyre cover. Similarly, if you have multiple cars at home, you don’t need conveyance benefit cover if one of your cars is in a garage for repairs. Thus, you can skip opting for irrelevant covers and reduce your premium costs while buying a car insurance policy online.

 

  1. Skip Comprehensive Policy for Old Cars

As the name suggests, a comprehensive car insurance policy provides extensive coverage to the insured car from risks of fire, theft, natural disasters, third party liabilities, accidents, etc. But a greater level of coverage comes at a higher insurance cost. Thus, you can choose to not buy a comprehensive cover for your car if it is very old. This is because older cars have a lower IDV that you may be able to afford in an unlikely situation of the vehicle getting damaged. Moreover, if you trust your driving and the past record proves you as a responsible driver, it does make sense to pay a higher insurance premium for buying comprehensive cover for old cars.

 

Parting Words

Reducing your car insurance cost and finding an affordable car insurance policy online is no rocket science. All you have to do is keep these tips in mind and save as much as you can on your car insurance premium. So go ahead, find your ideal car insurance and drive your car without any worries.

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