Affordability of Car Insurance Premiums

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Car insurance in India is a must-have for every car owner. It is a valuable asset with several practical advantages, given how unsafe Indian roads are. However, when the time comes to purchase motor or car insurance, people often hesitate. Or they omit the idea altogether.

People often think about the insurance cost. They want the best value for money, whether they choose a basic third-party plan or a comprehensive one. However, they have to choose between affordability and coverage since more coverage also means higher premiums. As a result, most people only continue with third-party motor car insurance because it has the most affordable car insurance premium with the least coverage.

But this should not be the ideal approach while buying 4-wheeler car insurance. Here are some simple ways to lower your car insurance policy premiums without sacrificing coverage.

 Ways To Make Car Insurance Premiums More Affordable 

Basic car insurance premiums will depend on several factors like your IDV, location, insurance plan type, add-on covers, car model and registration, etc. Generally, the cheapest plans are often basic third-party plans. However, for comprehensive plans, the car insurance premiums can be highly variable depending on the covers you choose.

Here are some ways you can get affordable car insurance premiums without having to sacrifice coverage:

  •  Explore All Your Options 

Other insurers may provide more coverage at better prices or have more plans available. It is important that you explore your options before purchasing a plan, as people often make the mistake of sticking only to one provider or picking the same plans year after year.

Many insurance providers like Tata AIG allow you to compare car insurance policies on their websites and provide other resources to help you calculate your premiums. So it’s best to take full advantage of the resources insurance websites offer you before purchasing.

  •  Choose The Right Add-Ons 

Add-ons can be great to increase your coverage on your comprehensive plan, but you need to choose them wisely since they come with an additional cost. The more add-ons you get, the higher your car insurance premiums.

So it’s best to assess your current situation and only go for add-ons that strictly apply to your unique circumstances. For example, newer cars can benefit from zero depreciation covers more than older or second-hand cars.

  •  Get Anti-theft Devices 

Location is a significant factor in deciding your 4-wheeler car insurance premiums. Suppose you live in an area prone to theft. In that case, it is best to install anti-theft devices that can deter anyone from stealing or damaging your car.

These devices can make your car seem like a less risky investment to your insurer. So getting a verified anti-theft device can lower your car insurance premium.

  •  Avoid Modifications 

It’s best to avoid modifying your vehicle if you want a lower insurance premium. This is because any personal modifications made to your car can increase your car insurance premium.

  •  Avoid Filing Small Claims  

Filing lots of claims can do more harm than good. This is because the more claims you file, the higher your insurance premium will be when you renew your car insurance policy. Moreover, you can also lose your No Claim Bonus when you file a claim.

Unless your vehicle has been severely damaged or suffers a complete breakdown and needs costly repairs, it’s best to pay for the smaller repair costs out of pocket.

  •  Lower IDV Value 

Similar to location, your car’s IDV or Insured Declared Value plays a part in deciding your car insurance premium. Opting for a lower IDV value can lower your premium amounts.

However, you must strike a proper balance between your IDV and the premium to be paid so that your claim settlement amounts fully cover your incurred costs.

  •  Renew Your Car Insurance on Time 

One common mistake many car owners make is not renewing their car insurance policies on time. Letting your insurance plan lapse can lead to higher premiums on renewal.

A lapsed plan also means that you will have to go through the application process all over again, and you may have to pay a penalty. You also become ineligible for a No Claim Bonus even if you didn’t make any claims during your policy term.

Many insurance companies today send out reminders for policyholders when it comes time to renew their plans. So make sure to keep an eye out for any reminders that come your way.

 Conclusion

These are some ways to ensure that your car is financially protected without stressing your savings. Insurance providers like Tata AIG provide affordable car insurance policies and flexible payment options to accommodate different financial situations.

So the next time you buy a plan from any provider, consider using the methods stated above to get more affordable car insurance premiums.

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