- Compare policies and their premiums It is advisable that you do your homework prior to purchasing your car insurance policy. Compare the policies side-by-side to get a clear idea about the premiums, benefits, and their list of inclusions and exclusions. Insurance premiums will usually differ across policies and the coverage they provide.
- Factor in voluntary deductibles Voluntary deductibles constitute the out-of-pocket expenses that you, the policyholder, have to bear at the time of filing a claim. Should your policy hold voluntary deductibles mandatory, you will have to bear, up to a limit, expenses in case your car is involved in an accident while the insurer settles the remainder of the claim.
- Install vehicular-safety features If your car is of an older model, you probably have to think it through, considering most new models come already equipped with standard safety components. Features such as anti-theft devices, anti-lock braking and alarm systems serve a two-pronged purpose – of contributing to the safety of your car as well as bringing down premiums.
- Be discerning when it comes to claiming for damages While you are certainly entitled to claim for damages, try and be a little discerning when it comes to minor repairs – fixing a broken windshield, for instance.
- Don’t go for unnecessary modifications to your car Installing expensive gadgets or opting for external modifications – including alloy wheels and its likes - could take your policy premiums for a ride. Make sure that should you want a modification done, it is necessary and doesn’t add unnecessarily frills to your car. That way, insurers might consider these additions fluff and end up scaling up policy premiums.
This simple step can help you zero in on a policy that not only fits your needs the best, but also allows you to save big on premiums. However, it is imperative to keep in mind that you should ideally not compromise on coverage in a bid to keep premiums in check.
In case your cover doesn’t feature such deductibles, the entire claim value will be taken care of by your insurer. The general idea here is that higher the deductibles component, lower will be the premiums and vice versa.
Should you install additional safety features in your old car, you will be able to benefit from reduced premiums as well.
That’s because should you have a claim-free year, you would be entitled to a No Claim Bonus (NCB) discount on your car insurance premiums, beginning next year. If you end up claiming for damages all and sundry, you will have to forego the NCB discount and stand to lose out on reduced premiums.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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