If you own a car, you must purchase a car insurance policy as it is a mandatory requirement under Indian Motor Vehicles Act. Choosing the right car insurance plan is an important step in getting financial protection against the losses arising from third-party liabilities and damages to your car. While buying a new car insurance plan or renewing your existing policy, you must do your homework and choose a suitable policy.
In this blog, we discuss a few valuable tips to help you choose cost-effective car insurance online.
Leverage the NCB benefits
Using the accumulated NCB (no-claim bonus) is one of the best ways to reduce your car insurance premium and make the policy more cost-effective. NCB is the reward offered by the insurance company to encourage policyholders to drive safely and dissuade them from filing a claim.
For every year of not filing a claim, you get NCB, which is basically a discount on the premium upon policy renewal. As per the car insurance rules, you can avail of up to a 50% discount on your premium if you don’t file a single claim for five consecutive years.
So, always make use of the NCB benefits by renewing your car insurance policy on time.
Buy insurance online and save money
One of the most effective ways to car affordable car insurance online is to do your homework well and research the different plans available in the market before buying a policy. This includes reading the terms and conditions and comparing the plans from different insurance companies in terms of coverage and benefits they are offering.
It is better to visit the official website of each insurance company or the aggregators’ site, where you can compare different plans side-by-side. When you compare and buy a policy online, you can compare the prices and choose a cost-effective car insurance policy.
Factor in the deductibles
Most car insurance policies have a deductibles clause. It is a critical factor that affects the premium cost. It is basically an out-of-pocket expense that you agree to pay during claim settlement. You must choose the deductible carefully. If you choose zero deductibles, you will get the full claim amount from the insurer, but you may also pay a higher premium.
If you are a seasoned driver or have not made any claims for a few years, you can choose a higher deductible. This will help you reduce your premium and make your policy more cost-effective.
Know your requirements
If you want affordable car insurance online, you can consider buying a third-party four-wheeler policy. It has a lower premium and offers limited coverage. It provides protection only against the damages caused to the third party’s car and assets. In third-party car insurance, you don’t have coverage for damages to your vehicle.
If you are looking for more extensive coverage, you can consider buying a comprehensive policy. It offers coverage against both third-party liabilities and own damage. Although the premium for such plans is slightly higher than third-party insurance, they turn out to be more cost-effective when it comes to the savings they offer during a claim.
Now that you know how to buy a cost-effective car insurance policy online, do your due diligence and get the best coverage at an affordable price.