In times, when we battle for the maximum benefits out of every penny we spend, why leave behind your car insurance policy? Read on to explore how you can reap the maximum benefits.
Old newspapers fetch us money when we sell them as scrap, we remodel our old clothes as per latest trends rather than throwing them away, refurbish our houses instead of moving to another one, etc. just in an effort to get the best out of our stuff whether they are our gadgets, our house or other household articles.
When you struggle to get the best out of life, why leave your car insurance policy behind. Here are a few ways how you can achieve the best results from the insurance policy you have for your car.
Maintain your car’s IDV: repair minor damages early – The IDV is the Insured Declared Value of your car which is the car’s market price net of applicable age-based depreciation. As you use your car, there is bound to be wear and tear of the car and you cannot avoid depreciation which will reduce your car’s value. If there are other damages like scratches, dents, etc., the incidental depreciation rate will become higher reducing the IDV further. In case of total loss of the vehicle, the IDV is payable and the higher it is the better for you. So, repair those minor scratches or dents on time if you want to maintain the value of your car for insurance purposes.
Timely Renewals: Much as you would like to delay paying premiums, a continued car insurance coverage is compulsory if you want to drive your car legally. Renewals are inevitable and if you do it on time, you will not only ensure a continued coverage but also a lower premium. Yes, you heard me right! Timely renewals also reward you financially. If you renew your policy a month or so in advance, the asking premium rate will be lower than if you renew it on or after the expiry date. Insurers know that a continued coverage is compulsory and they raise the premium rate as the date of expiry nears knowing that policyholders will have no other choice than to opt for the higher premium if the renewal is done on the day or after the expiry date.
Buy add-ons: Though your comprehensive policy provides a wider scope of coverage, yet you always have the choice of increasing the coverage by buying additional covers at nominal rates of premiums. For instance, the Zero Depreciation cover prevents depreciation from eating into the value of your car’s parts so that in case of damage, their full value can be realized as compared to the depreciated value. Roadside assistance, key replacement, etc. are some of the other add-ons available with your car insurance plan.
Keep the insurer informed: Any type of insurance is useless if the claims raised against them are not properly settled. If you want your claim to be settled quickly and fairly, inform the insurer immediately whenever a claim arises. Other than claims, you should keep your insurer informed about every necessary detail like your address change or any enhancements done to your car, etc. which will enable your insurer to deal with your claims properly.
Maintain your No Claim Bonus: For every claim-free year you earn a No Claim Bonus in your policy which is cumulative in nature. With passing time, the rate of this bonus might rise to as high as 50 %. So, you might get a 50 % discount on your own-damage premium if you have not made any claim in the last 5 years. However, once claimed, the entire NCB (No Claim Bonus) will be lost. In case of small damages which are lighter on the pocket, pay for the repairs yourself without raising a claim which will keep your NCB intact to be utilized in future.
Your car insurance policy is compulsory and instead of making it a burden on you, won’t it be better if you know how to make the most out of your plan? Just follow the above-mentioned simple steps and reap the maximum benefit out of your insurance cover. Whether you are rewarded with a lower premium or a hassle free claim settlement, you will definitely benefit if you maintain your policy properly.
Also Read: Effective Ways to Reduce Car Insurance Renewal Cost