Best Tips to Reduce Car Insurance Premium Plan

“Absolutely! Here are some easy tips to bring down your Best Tips to Reduce Car Insurance Premium Plan car insurance costs in India:

  1. Choose ‘Pay As You Drive’ Insurance:
    • Opt for usage-based insurance, where premiums depend on how much you drive.
    • Driving less can significantly lower your premium.
  2. Be Smart with Add-On Covers:
    • Some damages aren’t covered by the base policy. Add-ons boost your coverage but also raise your premium.
    • Pick add-ons based on your needs; skip less important ones like daily allowance cover.
  3. Avoid excessive modifications:
    • Inform your insurer about any car modifications.
    • Unreported changes may lead to rejected claims. Avoid modifications that increase the theft risk.
  4. Maintain a Good Driving Record:
    • Safe driving gets you discounts and lower premiums.
    • Steer clear of accidents and traffic violations for a clean record.
  5. Consider a higher deduction:
    • A higher deductible (the amount you pay before insurance kicks in) can bring down your premium.
    • Assess your finances and choose a suitable deductible.
  6. Bundle Policies:
    • Bundle your car insurance with other policies like home insurance.
    • Insurers often give discounts for multiple policies with them.
  7. Improve Your Credit Score:
    • A good credit score can positively affect your premium.
    • Maintain a healthy credit history for lower rates.
  8. Compare Quotes:
    • Shop around and compare quotes from different insurers.
    • Look for competitive rates and coverage that fits your needs.

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What is the Average cost of car insurance in India?

The cost of car insurance in India varies based on factors like the type of policy, car make and model, chosen coverage, and the insurance company. Here’s a breakdown:

Third-Party Insurance:

  • It’s mandatory and covers damages to others caused by your vehicle.
  • The average annual premium starts at around ₹2,400.

Own Damage Insurance:

  • Covers damages to your car from accidents, theft, fire, or natural events.
  • The premium varies based on factors like Insured Declared Value (IDV) and vehicle cubic capacity.

Approximate Rates Based on IDV:

  • Exceeding 1000cc but not exceeding 1500cc: 2.039% to 3.343%.
  • Exceeding 5 years but not exceeding 10 years: 3.191% to 3.698%.
  • Not exceeding 1000cc: 3.127%.
  • Exceeding 1000cc but not exceeding 1500cc (different range): 3.283%.

Monthly Premium:

  • On average, monthly premiums range between ₹350 to ₹450.

What is the claim process for car insurance?

Absolutely! Filing a car insurance claim involves a few steps. Here’s a simple guide to help you through it:

1. Intimate the Insurance Company:

  • Let your insurance company know about the accident or incident ASAP.
  • Use their toll-free number or email.
  • Fill out a claim form and submit it with the necessary documents.
  • Get an estimate for the damages from a workshop.

2. Inspection:

  • A surveyor from the insurance company assesses the damages.
  • You receive a report from the surveyor.
  • Your car goes to a network garage for repairs based on the report.

3. Submit Documents:

  • After repairs, give the surveyor the signed repair invoice, payment receipt, and other needed documents.
  • The surveyor forwards these to the insurance company.

4. Cashless Claim:

  • If everything is in order, your car gets repaired at the network garage without you paying (cashless).
  • The insurance company settles the claim directly with the garage.

5. Reimbursement Claim:

  • If you choose reimbursement, pay the garage directly for repairs.
  • The insurance company reimburses you based on policy terms.
  • Submit bills promptly after your car is out of the garage.

For a Stolen Car:

  • File a complaint with the police and get an FIR.
  • Submit a copy of the FIR to the insurance company.

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How do I renew my policy online?

To renew your policy, just do these simple steps:

1. Contact Your Insurer:

  • Get in touch with your insurance company or agent.
  • Let them know you want to renew your policy.

2. Provide Necessary Details:

  • Share your policy number and other important info.
  • Confirm any changes you want (like coverage or add-ons).

3. Premium Payment:

  • Pay the renewal premium.
  • Do it online, through mobile apps, or at the insurer’s office.

4. Receive Confirmation:

  • Once your payment goes through, you’ll get a confirmation.
  • Your renewed policy is now active.”

Are there any policies that cover natural disasters like floods or earthquakes?

Absolutely! Understanding insurance for natural disasters is crucial. Here’s what you need to know:

Home Insurance:

  • Basic home insurance covers fire, lightning, and storms but not floods and earthquakes.
  • For flood protection, buy a separate policy from FEMA or a FEMA-partnered insurer.

Standard Policies Exclusions:

  • Standard home insurance usually excludes floods and earthquakes.
  • You can add insurance to cover these exclusions.
  • To get reimbursed, prove the damage was from a covered peril.

Comprehensive Motor Insurance:

Additional Considerations:

  • Some insurers include flood coverage in the Standard Fire & Special Perils policy.
  • Business interruption insurance helps recover from financial losses due to temporary closures from floods.
  • Earthquake coverage can be added under the “Standard Fire and Special Perils” policy.
  • Individuals and businesses can buy suitable policies based on the value at risk to cover fixed assets in their area.

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