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Tips to Lower Car Insurance Costs

02 Jan 2022 0 COMMENT

Introduction

Owning a four-wheeler is no longer a luxury. Having a car, however, comes with specific responsibilities.  Getting a Car Insurance Policy is one among them.

Types of Car Insurance Policies

Car insurance is mandatory in India. The Motor Vehicles Act of 1988 mandates that the vehicle owner buys the Third-Party Liability to provide monetary compensation to the third-party due to injury or loss caused by the vehicle.

This, however, does not offer any relief if you or your asset gets injured or damaged in an accident. This is precisely the reason to consider buying an all-inclusive Comprehensive Car Insurance Plan. The benefits of this over Third-Party Liability are as follows:

  • It offers a broader coverage and takes an all-round consideration
  • Has the provision for add-on covers to extend the scope of your base policy
  • Scope of customising your policy exists in a comprehensive Car Insurance

Cost of Car Insurance

The Car Insurance cost is the Car Insurance premium you pay. Ideally, you want your Car Insurance to be exhaustive so that you are protected across scenarios. You must remember that such a policy entails higher Car Insurance cost. Hence, maintain a healthy balance between the Car Insurance coverage amount and the attached Car Insurance cost.  Some of the factors which affect the premium are as follows:

  • Geographical location, i.e., the region where you operate the cost
  • Make, model, and vehicle variant
  • Engine type
  • Fuel used

Tips and tricks

While Car Insurance cost is inevitable when you buy a robust policy, there is a reliable Car Insurance tip cost that you can rely on for lowering the expenses:

Compare and buy:

The Car Insurance market is huge, where every provider is striving to outdo the other to gain a larger client base. Before you lock in for a specific Car Insurance, do extensive research and explore the market. You would find different Car Insurance providers charging differently. Based on the coverages offered, you can take an informed decision about which policy to go for.

Invest in anti-theft devices:

The high Car Insurance cost is owing to the increased liability your Car Insurance provider thinks they may face. Therefore, invest in anti-theft devices for your vehicle. This reduces the probability of your car getting stolen and assures your Car Insurance provider of their potentially lower liability. This results in lower Car Insurance cost.

Pay as per usage:

There are provisions available under Car Insurance policies wherein your premium gets decided depending on how much you drive. If you do not drive frequently, you can make good use of this provision and lower your Car Insurance cost.

Increasing voluntary deductibles:

Deductibles are that portion of the Car Insurance plan, which the owner promises to pay out of their pockets during claim settlement. This deductible amount is inversely proportional to the Car Insurance cost. If you increase the deductible, the attached premium amount will drop. However, raise the deductible amount only up to the level you can afford to pay if an unfortunate event occurs. Do not solely focus on it for lowering the Car Insurance cost.

Additional Read: 8 Things to Keep in Mind While Opting for a Pre-Used Car Loan

Conclusion

Buying a vehicle is not a regular affair. Therefore, consider the Car Insurance tip mentioned to safeguard the car. The Car Insurance cost is inevitable, but these will help you make an informed and cost-effective decision.

 Disclaimer:

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec acts as a Composite Corporate agent having registration number –CA0113. Please note, Insurance related services are not Exchange traded products and I-Sec is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.