You have always dreamt of buying a car of your wish. You start your work career and within a couple of years do the best you can and earn a handsome salary. The most obvious purchase is then a car. But before you start calling dealerships for a test drive, there is one thing that you must be aware of.
The quotations of the cars that you receive will almost always include an insurance component. There is a good reason why it is there. The Motor Vehicle Act of 1988 made it mandatory for all vehicles to have a valid insurance so that they can be driven legally on the roads.
Why Buy Insurance?
Apart from the obvious legal clearance, you also get a host of other benefits when you buy a car insurance policy. For starters, if your car met with an accident and there was damage to both the parties, a car insurance will come in handy.
If you were to repair your car after any such incident, it can easily burn a hole in your pockets. To repair the bumper of a standard hatchback, you will end up paying between INR 3000-5000. If there is any damage to the windshield you will end up shelling out INR 6000-8000.
Then there are other perils that your car needs protection from. For instance, if any natural calamity were to strike your place of residence, a car insurance will pay for all the damages. In the unfortunate event of theft, burglary, vandalism, riots, malicious intent etc. the policy kicks into effect.
How to Buy the Most Affordable Plan?
Now that we have established buying a car insurance policy is important, the next milestone is to save money on the same. The following are some of the most effective methods to save money on your car insurance policy or to be able to buy the most affordable one.
Insured Declared Value is one of the most prominent factors that decide the premium of your car insurance. It is the value of your car on which all other features and benefits are based on. When you set out to buy or renew your car insurance, you have the option of modifying the IDV as per your needs. A lower IDV obviously leads to a lower insurance premium. However, it is not advisable to reduce the IDV to the lowest possible value, as it might have repercussion later on.
For every year that you do not claim your car insurance policy, the insurer rewards you with NCB or no claims bonus. It is a cumulative bonus, which you can carry forward for a maximum of 5 years. For the very first claim free year, you can avail 20% discount on the own damage component of your policy and the same goes up to 50% for consecutive years.
Becoming a member of recognized automobile associations is another smart way of getting discounts. Being a part of such associations ensure that you tend to drive safely on the roads. Thereby, letting insurers offer you a discount for the same.
- Security Device
For car owners who are worried about the safety of their vehicles, they can install certain safety devices. Firstly, it offers them complete peace of mind, since modern day devices come with inbuilt trackers as well. Secondly and most importantly, insurers offer discounts for cars with security devices installed on them.
The last and most effective way for a more affordable car insurance is to compare the policies. You can obviously visit the website of individual insurers and keep a note of their features, benefits, premiums and so on. Sure, you will get the results, but it is far from ideal. Alternatively, you can visit a comparator website. You just need to enter the mandatory information once and get quotes from various insurers by just a click.
You can then assess the different policies based on factors such as features, benefits or just premium. In comparison, you will receive different quotes for the same car from different insurers. Thus, you can compare in real time the quotes and pick up one that is the most affordable one.
Comparison not only helps you save money on the car insurance premium but also can be extremely helpful in picking up a policy that has the most features.
It is no secret that each one of us has different needs and requirements from their car insurance policy. When you compare, you have a much better chance of buying the right policy.