Top 3 Smart Tips For Getting The Best Price On Auto Insurance
There are a few ways of saving a ton of money on Car Insurance like ‘Switch to reverse and drive away from the accident’ or a bumper sticker that reads ‘Please don’t hit me as I am not sure about my coverage’.
Wish we could get away so easily and avoid paying huge amounts for ensuring our vehicle. Well, in this blog we will share three important tips for getting the best price on Auto Insurance. To begin with let’s understand Auto Insurance, its Types, and Factors which affect the Premium of your Car Insurance. In this article let’s talk about the Top 3 Smart Tips For Getting The Best Price On Auto Insurance!
What Is Auto Insurance?
Auto insurance is an agreement for your vehicle between you and the insurance company that protects you against financial loss in the event of an accident or theft of your car. The Auto Insurance Company is liable to pay your losses as determined in your car insurance policy and in turn you have to pay a regular premium and renew your Insurance Policy periodically.
What Are The Types Of Car Insurance?
Third Party Liability Policy –
This covers bodily injury, Death and Property Damage. Personal Accident cover for Owner Driver is also included in Third-Party Insurance policy. Third Party Liability Insurance Policy is legally mandatory in India under the Motors Vehicle Act.
Comprehensive / Package Policy –
This covers loss or damage to the vehicle insured in addition to the Liability Only policy. Most people prefer Comprehensive Insurance for their vehicles since it provides end-to-end or bumper to bumper coverage
What Are The Factors Affecting The Insurance Premium Of A Car?
The basic factors which are taken into account for calculating the Auto Insurance premium include the vehicle value, the age of the vehicle, geographical zone and vehicle cubic capacity.
Various add-on covers available to choose from will accordingly increase or decrease the price of Auto Insurance.
- Third Party Cover (TP): It covers third party Life for unlimited value and third-party property damage for a certain amount. There is an option to reduce the insurance company liability that reduces the premium.
- Owner Driver Personal Accident (PA) Cover: It is a mandatory requirement. It ensures the vehicle owner for Rs. 15 Lacs, at a premium cost of Rs. 750.
- Personal Accident Cover for Passengers: This is an optional cover. Its cost is Rs.100 per passenger, for the cover of Rs. 2 Lacs which is the maximum coverage that can be offered. It can be reduced up to Rs.10000 which will have a premium of Rs. 5/-.
- Registration City: Premium Rate varies based on Registration City – higher premium is charged for metros and state capitals as compared to remaining cities.
Few other factors considered for Auto Insurance premium calculations are:
- Insured Declared Value (IDV), Insured Vehicle Value
- Engine CC
- Discounts from No Claim Bonus or Automobile Association Membership
- CNG / LPG – Inbuilt or External
- Electrical / Non-Electrical Accessories insured
- Vehicle type – Private or Commercial
- Customer type – Individual / Corporate
When it comes to Insurance there is always a tug of war between Great Insurance Coverage and Affordable Insurance Rates. Let’s help you save some money while getting adequate coverage for your vehicle under Insurance.
Three Smart Tips For Getting The Best Price On Auto Insurance:
Voluntary Or Excess Deductible
The voluntary deductible is the minimum amount that a customer declares to bear at the time of the claim. This is an option wherein, if the customer agrees to bear the claim cost up to a certain amount, then the customer can get a discount accordingly at the time of taking Insurance. So if a customer is willing to settle petty claims for small damages from their own pocket voluntarily, then the cost of the premium for vehicle insurance can be reduced approximately by thirty percent. The higher the deductible the customer opts for, the lower the premium will be.
Security Features Discount:
Few cars come with enhanced security systems which are built-in such as anti-theft alarms. These enhanced Security features decrease the probability of car theft thus making your car less liable to theft. If your car is fitted with an anti-theft device approved by ARAI, make sure to ask your dealer for a discount as you are entitled to an Anti-theft Discount of 2.5% of own damage net premium or Rs. 500, whichever is less
No Claim Bonus:
NCB is a discount given by insurance companies while renewing a motor insurance policy if the owner has not made a claim during the previous policy period(s). The NCB can be accumulated up to a maximum of 50% on OD premium which means you can reduce the premium pay-out by nearly fifty percent every year if you don’t claim insurance on your vehicle. Insurance companies give the benefit of no claim bonus as a record of your good driving year after year. If you sell your vehicle, this no-claim bonus can be transferred to your new insurance policy for the new vehicle and avail lower premium pay-out.
Now that you know all the necessary details and tip to save money on Car Insurance plans, it’s time to secure the car of your dreams using the cover it deserves.
Your safety and peace of mind are of paramount importance to us. Shivam Autozone, therefore, offers exceptional protection to Maruti Suzuki vehicle owners through New Car Insurance and Insurance Renewal services. Our insurance services ensure highest levels of trust and transparency in transactions, speedy processing, near-cashless repairs, no hidden charges, and complete reliability. Compare car insurance policy rates/insurance renewal price online and we guarantee the best car insurance plan at the lowest premium.