You cannot avoid a car insurance policy. Just like you need a valid Driving License to drive your car, you also need a valid car insurance cover to ply your car on Indian roads.
April 02, 2017
Since the policy is inevitable, you look for ways to lower the premium outgo.
But do you know how to get the best car insurance quotes?
Does lowest always mean the best? No. Atleast, not when in it comes to car insurance policy.
So you must strive that is best suited to cover your car.
Today I’m going to disclose 6 secrets of getting the best car insurance quotes:
Secret #1 – Go online and shop around and do some basic research before settling
Do you know how many car insurance policies are available in the market? Too many to lose count!
With more than 15 general insurance companies offering you a car insurance policy, you are spoiled for choice. You can get the best car insurance quote if you compare between these available policies before you buy one.
To compare, you should visit online web aggregators and brokers and look for the available plans. Other than premium, you should compare plans based on the company’s claim settlement ratio, customer reviews, claim settlement process and network of cashless garages, etc. so that you opt for the best plan which suits your needs. If you do not get the correct solution to your car insurance needs, then the entire purpose becomes meaningless!
We, at Coverfox.com, give you a choice of multiple car insurance policies along with their quotes so that you can compare the various plans and shortlist the best car insurance quote for your requirement.
Secret #2 – Opt for a voluntary deductible
Voluntary deductible is the amount you pay in case of a claim. The rest is then settled by the insurance company.
For instance, if you opt for a voluntary deductible of Rs. 2500 and make a claim of Rs. 10,000, you would have to pay the deductible limit of Rs. 2500 while the insurance company pays Rs. 7500 to settle the claim.
Voluntary Deductible Discount in Premium
Rs 2,500 20% of premium discount subject to a maximum of Rs 750
Rs 5,000 25% of premium discount subject to a maximum of Rs 1500
Rs 7,500 30% of premium discount subject to a maximum of Rs 2000
Rs 15,000 35% of premium discount subject to a maximum of Rs 2500
When you opt for a voluntary deductible, you lower the incidence of claims on the insurer. That is why insurers allow premium discounts when you choose a voluntary deductible limit. This premium discount saves your money and ensures the best quote for your car insurance policy.
Secret #3 – Look for discounts
A car insurance policy offers various discounts which lower the premiums.
Here’s the list that can easily avail from any insurer:
• You get a discount if you are a member of AAI (Automobiles Association of India) or WIAA (Western India Automobile Association)
• If you install anti-theft devices and other safety measures in your car
• No claim Bonus, which is a discount, for not raising claims in your policy
If you do not make a claim on your car insurance policy in any year, you get rewarded. The reward is a No Claim Bonus discount which is given in the next year’s premium. This discount rate also increases for every consecutive claim-free year. So, if you have accumulated NCB in your car insurance policy, use the discount to get the best car insurance quote for your car insurance plan.
These discounts help you save money on your car insurance policy. Thus, always look for a policy offering these discounts and you can get the best car insurance quote.
Secret #4 Check additional covers
There are some free additional covers provided by some insurers like Roadside Assistance while other insurers may charge for the same. While it is necessary to opt for some add-on covers, choosing the most necessary ones makes sense. Also try and get as many covers included in the original policy as possible without having to pay an additional sum.
Secret #5 – Lower premium might lower your car value: Check IDV
The Insured Declared Value (IDV) of your car is the market value of your car after subtracting the relevant depreciation. The IDV decreases every year as your car gets old which increases the depreciation rate.
The IDV also determines your car insurance quote. So, when selecting a car insurance plan, choose the correct IDV, as per the years of depreciation of your car to get the best quote for your insurance plan. So, a lower premium might not mean the best quote, it might also mean that your IDV has been lowered. So, you need to check your IDV and then opt for the insurance coverage.
Refer to the table:
Vehicle Age % Depreciation of IDV
Less than 6 months 5%
6 months to 1 year 15%
1 year to 2 years 20%
2 years to 3 years 30%
3 years to 4 years 40%
4 years to 5 years 50%
More than 5 years Percentage calculated will depend on the insurer’s discretion, car condition and claim history
Secret #6 – Renew your car insurance policy on time
The last secret for getting the best car insurance quote is to renew your policy on time.
If your insurance policy has expired, you face several complications. You have to get your car inspected and then get the policy renewed. If you postpone renewing, the NCB is lost if not renewed within 90 days. So, if you do not renew your car insurance policy on time, you might end up paying a higher premium.
These were the secrets of getting the best car insurance quotes for your car. Besides saving money on the premium payment, these secrets also give you the best car insurance policy for your car. So, keep these points in mind the next time you search for car insurance quotes.
Stories by sandip shah