How to choose car insurance with low premium?
While choosing car insurance, many people dream of getting good coverage at a low premium. But finding the right insurance policy can be a bit difficult. Here are some important things to keep in mind to choose the best and low-premium car insurance policy for yourself.
- Understand the type of policy
There are mainly two types of car insurance:
- Third-party insurance: This is the cheapest and most important insurance. It is useful only when your car causes damage to another person or his property.
- Comprehensive insurance: This provides more coverage than third-party. It also covers damage to your car (theft, fire, natural disaster). However, its premium is higher.
You can take third-party insurance for a lower premium, but it only fulfills the legal requirement and does not protect your car. Therefore, most people choose a comprehensive policy because it has more benefits.
- Choose the right IDV
The insured declared value (IDV) is the market value of your vehicle. This is the amount you get if your vehicle is stolen or damaged. The higher the IDV, the higher the premium.
To reduce the premium, you can keep the IDV slightly lower, but choosing a very low IDV can be detrimental. In case of an accident, you will get a lower claim. So, always keep the IDV close to the actual value of your vehicle.
- Avail No-Claim Bonus (NCB)
If you do not make any claim on your insurance policy for an entire year, the insurance company gives you a No-Claim Bonus (NCB). This is a discount on the premium. The NCB increases after every claim-free year, and it can be up to 50% in 5 years. If you make any claim, your NCB becomes zero. So, avoid making claims for minor damages.
- Understand essential and unnecessary add-ons
Along with comprehensive insurance, you can also take some add-on covers, such as:
- Zero Depreciation Cover
- Engine Protection
- Roadside Assistance
These add-ons increase your premium, but they can be very beneficial. If you want a lower premium, choose only those add-ons that you really need. For example, if your car is new, it would be good to take zero depreciation cover, but if your car is old, it may not be necessary.
More tips for low premium policies:
- Compare online: Visit the websites of different insurance companies and compare their premiums. On many online portals, you can see the plans of many companies at one place.
- Avoid minor claims: Do not claim for minor damages that you can repair yourself. By doing this, your NCB will remain intact and you will get a discount on the premium next year.
- Keep your vehicle safe: Park your vehicle in a safe place. Install an alarm or lock to avoid theft.
- Renew the policy on time: Get your policy renewed on time. If you do not do so, the policy may lapse and you may have to pay a higher premium while taking a new insurance.
Keeping all these things in mind, you can choose the best and low premium car insurance policy for yourself, which does not put a burden on your pocket and also gives you complete protection.