How To Optimize Your Car Insurance Premium

How To Optimize Your Car Insurance Premium

Getting a new car is always exciting and a source of great joy. But just buying a new car is not enough in today’s time. It’s important to be able to maintain the vehicle well and adequately pay for its additional expenses. Another aspect of owning a car is keeping it safe and secure from all kinds of harm. That’s why motor insurance becomes necessary for all car owners as it acts as a preventive measure that protects the car and the owner’s interest in the unfortunate event of an accident, theft, fire, etc. However, more often than not a car insurance is bought without paying proper heed to the details and scope of its coverage. This ultimately results in car owners not being able to leverage the policy for all its worth.

Car insurance is of prime importance in a country like ours where road accidents are perpetually on the rise. That is why car owners need to have car insurance to protect themselves and their cars. As the former accident capital of the world, cars in India need insurance not just for critical situations but also as a safety net from a financial standpoint.

While there are several options in the market to choose from, it is essential to do some research and set some parameters before making a decision. Doing so not only enables you to make an informed choice but also saves you from spending excessive money. Let us know more about some ways to optimize your car insurance premium.

No Claim Bonus

No-Claim Bonus or NCB is a type of reward that is offered to the policyholder by their insurer for having a claim-free year. The bonus comes in the form of a premium to the insured at the time of policy renewal. The interesting thing about the NCB is that it does not pertain to the car as much as it does to the car owner. This means that it is essential on the car owner’s part to be careful while driving and not raise a claim.

The important thing to note here is renewing the policy on time as it can help the policyholder avail discounts of up to 20%-50% on the premium. Additionally, if a policyholder wishes to port to a new insurer at any point then the NCB can be transferred to the new insurer. This brings in continuity in the policy and safeguards the NCB’s consistency.

Voluntary Deductibles

When talking about motor insurance, one cannot miss out on the topic of voluntary deductibles. A voluntary deductible is an amount that a policyholder agrees to pay for the repair of the car from their end while raising a claim. Paying the voluntary deductible is mandatory for car owners before the insurance company pays the claim value. It helps the insured in saving on the insurance premium. Hence, the higher a policyholder’s voluntary deductible amount, the lower is their insurance premium.

Adequate Coverage

After you begin your research around car insurance, you will want to choose a plan that offers just the right cover for your requirements. Today, insurers in the market are offering comprehensive car insurance coupled with valuable features including cashless network garages, quick online process and a high claim settlement ratio. Therefore, it’s essential to map out your requirements first and then shortlist the plans that seem most relevant to you. It can then be supplemented with add-ons like engine protectors, 24×7 spot assistance, consumable expenses and conveyance benefits.

Hence, with the correct research, logical evaluation, and choicest add-ons you are sure to enjoy a smooth ride for life. So take your time and patiently map out the best way possible for you to save and optimize your insurance premium.

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