Smart Buying tips for your Car Insurance
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Get complete information about the add-ons available to be integrated into your car insurance policy for additional coverage.
Renew On Time, Every Time
Set reminders for your car insurance renewal dates so you never miss your policy’s renewal date. The early bird always stands to benefit.
Avoid False Declarations
False declarations will come back to haunt you. Your car insurance policy will lapse immediately if any incorrect information is found at any stage of your coverage period.
Discount for Security Features
Some cars come with enhanced built-in security features such as anti-theft alarms, immobilizers and other systems that give potential thieves nightmares. With a low probability of theft, such cars can be insured for less premium. Note that only Automotive Research Association of India (ARAI) approved devices will fetch a 2.5% discount on your premium.
Your premium for a Car insurance is determined by
The city where a vehicle is registered determines premiums. Cars in metropolitan cities have to pay higher premiums as the incidence of vehicle thefts and accidents is higher.
Make & Model
Vehicle make and model and potential risk factors associated with it is a factor. For instance, some makes and models fare better in collisions than others so injuries to occupants and damage to the car would be less severe.
No Claim Bonus Percentage
The insurance premium amount will always be less if you haven’t made any claims before. The no-claim bonus percentage plays a major role in determining your premium amount. So think twice before scurrying to your insurer for a miniscule scratch or dent.
Type of Cover Taken
Additional cushions you may consider such as cover for CNG/LPG kits, key replacement costs, road-side assistance etc. will increase your premium amount.
Expert Tips For Cutting Your Car Insurance Costs
You Snooze, You Lose
Always renew your motor insurance before the due date to avoid the inconveniences such as vehicle inspection as well a potential increase in premium cost.
Don’t Sweat the Small Stuff
Making small claims like dents and scratches will push up the premium amount when you renew it the following year and you will lose the no-claim bonus in the corresponding year.
Shubh Financial Hub – Your Best Bet
Buying car insurance by comparing premiums of various Insurance companies with us will help you to save your money.
Add-on benefits in a car insurance policy
Zero Depreciation Cover
Normally car insurance plan pays you the depreciated value of the part and not the invoice value of the part. By opting for a Depreciation Cover, you would be paid the actual price of the part and not the depreciated value. This benefit comes with a small increase in premium.
Invoice Price Cover
In case of a “total loss” of your car due to severe damage, the insurance companies will pay you the depreciated value of your car and not the price to purchase a new car. If you opt for this add-on cover, you effectively receive an amount to purchase a brand new car. Companies also pay the road tax and registration costs with this cover. It is also called the “Return to Invoice” cover. This can be availed by paying extra premiums.
No Claim Bonus Protection
In case, you have accumulated a good No-claims bonus %, this add-on cover will protect your against the loss of this bonus in case of a claim you make. You will be able to carry on your NCB % on renewal.
Assistance which insurance companies offer as add-on covers include emergency transport, daily allowances, assistance if you run of out fuel, assistance in case of a flat battery, towing facilities, taxi benefits to name a few. Some are offered as freebies and some are charged as part of the annual premium itself. Small measures which can actually be very handy when you are stranded.
Keys and Locks Replacement Cover
In case the keys to your car are lost, this will cover the costs of replacement. In case new locks need to be procured, this will cover that cost also. Usually this is available only once during a policy period.