Finance Blog

Simple Tips to Follow to Get Car Insurance

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Is your car insurance renewal around the corner? Are you confused about which is the best policy for your car or not? We will be covering some simple steps and tips that you can follow to purchase an effective car insurance policy. Before we jump into that, here are a couple of reasons why you must, at any cost renew the policy.

  • Legal Obligation

The Motor Vehicle Act of 1988 mandates all the vehicles on the road to carry a valid insurance on them. If you do not renew the policy on time and it lapses, you might have to pay a hefty fine if a traffic policy gets hold of you.

  • Other Benefits

On the other hand, not renewing on time has other repercussions as well. For starters, you might have to pay for someone to inspect your car again. Secondly, insurers might charge you higher for a lapsed policy. There might be some accumulated bonuses that you might miss out on if you let your policy lapse.

The Best Suggestions for Someone Selecting Car Insurance

Before you set out to buy a car insurance policy the following steps should aid you achieve them.

  • Understanding your needs

You can either buy a third party liability insurance or a comprehensive insurance. Though it is solely at your discretion which one to choose, a comprehensive policy is recommended. A third party liability policy gives you just enough to set your car rolling. For starters, it ensures that you are not breaking any laws. It also provides cover for the third party in the event you meet with an accident with a person or a property.

On the other hand, a comprehensive policy gives you all of the above and more. If you are in a city that is prone to earthquakes or floods, a comprehensive insurance is your best bet. Theft, damage to your own car, personal accident cover is some of the other benefits that you shall be entitled to.

  • Riders

A rider or add-on is a feature that you can plug into your car insurance by paying additional premiums. Depending on your insurer there is a long list of riders that you can choose from. You could pick up a zero depreciation cover policy which ensures that you get paid in full for replacement or repairs. You could also opt for a road side assistance rider, wherein the insurer will provide you with the necessary road side assistance should your car breakdown. For individuals living in areas prone to floods, the engine and electronic circuit cover can be a big plus. Should any unforeseen events take place, damages to the engine and electronics circuits will be covered by the policy.

  • Safety Devices

This is a personal choice but can earn you a couple of benefits. If you remotely feel that your neighborhood is prone to theft, go ahead and install a security device in your car. This will give you additional peace of mind and lower the insurance premium as well. Yes, you heard it right, insurers provide a small discount if your cars have security devices.

Simple Steps on How to Get A Perfect Car Insurance

Unlike several other things, getting a perfect car insurance is not all that difficult. The simple reason being, that you get a lot of control on choosing the right product and the right additions to it later on. The fact that you can take a few steps to reduce the insurance premiums is the icing on the cake. Here are some quick and smart ways by which you can save some money.

  • Deductibles

When you opt for a slightly higher deductible than the norm, you end up paying a slightly lower insurance premium.

  • Associations

There are a few driving associations such as the Automobile Association of India and Western India Automobile Association. When you enroll yourself into any of these elite clubs, insurers will provide you a certain discount.

  • NCB

Do not forget to make the most of NCB. If you haven’t claimed your policy in the previous year, you can ask for a discount on renewal of the policy. It starts from 20% and goes all the way up to 50%.