Ever given it a thought that why you have been paying so much for your car insurance Policy?
If you think that you are paying more than your share, then it is worth finding out why your premium rate is more than others and what can you do to rectify it. To understand better you can compare various plans that are available for car insurance online in India. This way you can choose a car insurance policy that provides maximum coverage within your budget.
So, let’s see why you have been paying through your nose for your car insurance-
1. How many times have you claimed your car insurance?
You will lose your no-claim bonus if you make frequent claims for small damages. If possible try to use your car insurance policy as a backup against exorbitant financial losses. If the expenses are small, it is sensible to pay for them from your own pocket. This will reduce your car insurance premium cost at the time of renewal or while buying a new car insurance policy.
2. The Type of Policy You Have Purchased
It is essential to choose your car insurance policy carefully. So, if we take into consideration the deductibles – a policy with zero deductibles means higher insurance premium cost and policy with deductibles, say 10 or 15% means lesser car insurance premium.
There is certain coverage that may be redundant, for instance, you can easily get roadside assistance from a car dealer, then why pay extra for it in your car insurance policy.
You don’t need to buy additional personal accident cover if you already have a personal insurance policy with accidental cover.
Suppose you have purchased Bajaj Allianzcar car insurance policy. And the insurer offers various add-on covers, which may keep you in two minds. In that case, it is advisable that you assess your requirements and buy only the one that is required and enhances your safety.
Unnecessary add-on covers will only increase the premium cost.
3. A Dodgy Driving Record
An erratic driving record flawed with fines and traffic violations can be one of the major reasons why people end up paying a higher car insurance premium.
Maintaining a good driving record is important to ensure your safety on road as well as create a good impression with your car insurer. The bad driving record is an alarming situation for the insurer as it makes you a liability for them.
You are likely to claim more if you are an unsafe driver as it will increase the possibility of miss-happening on the roads or a collision. Simply put, there is more probability of your car being damaged in such a scenario and it can prove to be expensive to insure.
If you think, your driving record is not clean; you can take up the training courses to improve your driving skills. To remove the fines and black points from your driving record it is worth to take up these courses to maintain a cleaner record.
4. Credit history
Customer’s credit history is one of the major factors that can influence one’s car insurance premium. Countries where credit report system is well- established it is important to maintain an untarnished credit report or history.
Though this concept is still not that prevalent in India, it is now seen to be growing. Once established, it is going to hit the people with poor credit scores the hardest.
The car insurance premium can be affected by the accidental history of the driver based on the demographics. The cost of the premium varies from one insurance provider to another based on factors like the gender, age and marital status of the policyholder.
For instance, a mid-aged policyholder who has been driving for 20 years will be charged lesser in comparison to a young driver who just got his license to drive.
6. Not Comparing Car Insurance Premium
It’s always better to grab some deals and discounts, and car insurance is no less. Make sure thatyou compare different car insurance plansbefore you make the purchase. You simply need to search car insurance online India and you will get so many options.
If you failed to do so, you might not be able tochoose the plan that offers you optimum value for your money. You can compare various car insurance plans on an insurer aggregatorsite and save your hard-earned money.
7. Car Model
Car make and model is an important factor that decides your car insurance premium. The premium for a basic car model will be lesser in comparison to a sports or luxury car model. The parts of such cars are also expensive to repair.
Sports cars impose more risks due to their high-speed functionality, thus their premium is more. Modified cars also have a higher premium cost.
Everyone wishes to buy the best car in their range. The exterior and world-class features of expensive cars can lure anyone. But before that, you need to ask yourself one question – the purpose for which you are planning to buy a luxury car?The cost of premium attached to it along with the factors influencing the car insurance premium.
Wrapping it up!
To avoid paying a higher premium cost, it is advisable that you compare multiple car insurance quotes based on their coverage, premium, deductibles, and additional covers. Once satisfied, you can zero down on one policy and the insurer. This will help you select the policy with insurance premium within your budget.