Various ways to tweak your car insurance:
Do not fret about your annual cash outflow as there are various ways of tweaking your car insurance to ensure a significant cut in your premium cost. Here is a quick dekho as to how you can “Trim the Bill”:
Ferret out discount schemes:
Many insurance companies offer premium discounts on auto insurance. Find out about these plans with your insurance partner. Discuss in details and understand the features relating to these schemes. Earlier, policy discounts would comprise of features like the age of the vehicle, the model of the car or your two wheeler, engine capacity, price, etc. However, with time, insurance players are studying to add other criteria to reflect favourably on your premium. This is applicable in areas where tariff restrictions are exempted by IRDA.
Be Direct with your insurer:
Then again, instead of asking your insurer for the best insurance plan, give them proper and relevant information and see what they have to offer. Chances are they will offer you an attractive plan to lower the annual premium by 10% -30%.
Careful driving… Avoiding claims:
If you haven’t claimed your car insurance policy in any given year, it goes to show your driving skills. This will result in a bonanza where you get to reap the benefit of No Claim Bonus. This comes in the form of a reduction of up to 50% in your own damage premium in the subsequent year.
Insurers offer you a discount on your vehicle premium if you bear a certain amount of loss associated with each claim. This is called ‘Voluntary Deductible’ amount which you, as a car owner, have agreed to pay towards a claim. This is before the insurance company fills in the balance amount. The higher you pay the ‘Voluntary Deductible’, the lower is your premium. But ensure that the discount amount on the premium is definitely higher than the voluntary amount you are paying.
Make of your car:
The discounts vary according to the type of car. Every insurer fixes a certain premium price for a car based on its past claim experience. As you know, each type and model of car has its own claim history. Some cars are more likely to be claim-prone than other models because of the structure, technical specifications, etc. Furthermore, high end salon cars also attract prohibitive repair costs, a factor to be considered by the insurer while deciding on their premiums.
Some insurance companies consider women to be safe drivers offering better discounts on premium. Yet other companies give their vote to men and so the discounts are set accordingly. However, such deals are more popular in the west and is yet to pick up in India.
Doctors, CAs bonanza:
Having said that, a doctor or a CA can get 5% more discount on premiums because of the profession they are into. They are considered stable, careful and mature, thus giving the insurer surety that they will demonstrate these qualities while driving !!!
Similarly, every senior citizen gets an additional discount if the car is on their name. Wow! Who knew ageing would be so advantageous. Similarly, discount of as high as 50% can be considered for differently-abled owner- drivers.
Are you a member of any recognized auto-mobile association? You are in for some pleasant surprise... Your membership could entitle you to some discount on your car insurance premiums. However, this is purely at the discretion of the insurance company.
If you plan to fix an anti-theft mechanism in your car, get the same approved by ARAI (Automotive Research Association of India). This will entitle you to get an additional discount of perhaps up to Rs 500 on your premium.
Many insurance companies are now taking into consideration the city where the vehicle is registered or will be driven. Claims based on location is investigated and the premium is thus calculated accordingly.
Buying a new car? When buying a brand new car, your dealer will offer you free insurance. But be aware of this momentary bubble of happiness. The dealer normally charges you more premium for the given IDV- Insured Declared Value. Don’t mistake it for a discount.
Instead, ask the dealer for a quote and verify it with an online portal or your car insurance company. After a thorough research you can then negotiate with your dealer for better premium or any other freebies for your car. Save on insurance or save on accessories.
Better still, call up Coverfox insurance experts to get the right advice. You will be on safer grounds.