Different Factors affecting Car Insurance in India
“Nowadays people know the price of everything and the value of nothing”- Oscar Wilde
We live in the information age where the smallest investments are finalized only after detailed research on the internet. Be it buying a phone, car, bike, or even jewellery. However, when it comes to buying car insurance, people ignore the comparison part and blindly opt for the policy that their agent recommends. We need to understand that with a little bit of research people can save a lot of money. Therefore, let’s shed some light on the different factors affecting car insurance to save some money every single year:
1. The model name of the vehicle and its manufacturer: The Company that has manufactured the vehicle as well as the model name has a major impact on how save the vehicle is in case of an accident. So for instance, a model which has better safety features will be considered safe and would have a cheaper premium rate. The safe logic applies to the age of the car.
2. The city where the car is registered: The Registration city plays a part in determining the safety of the car. This is because certain cities have more incidents of accidents and thefts. No wonder, the metro cities have to shell put a higher premium amount for a car insurance policy compared to the Tier 2 cities.
3. The Add-on cover opted: There are a lot of add-on covers floating in the market. Opting for a cover that perfectly fits your requirements and staying clear of the add-on covers that increase your premium amount is the trick to reduce the car insurance premium you pay. Ensure you opt for Roadside assistance and Nil-depreciation covers which come extremely handy in times of need.
4. Leveraging the no-claim bonus: The no-claim bonus amount is the bonus you get when you don’t make a claim for an entire policy period. The no-claim bonus feature enables you to save a lot of money on your premium. Therefore, rather than making claims of small amount it is always suggested to bear the cost of small claims from your own pocket as it would rob you of a no-claim bonus of a much higher amount. Next time you have a small scratch on your car ignore your insurance and pay it yourself.
Special Tips to save on your car insurance
1. Pay your premium on time to avoid additional break-in cost.
2. Buy online to make the most of discounts
3. Avoid making small claims to leverage no-claim bonus
4. Compare prices before purchasing a policy.
Therefore, next time you buy car insurance don’t close the deal without considering these tips.