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No one enjoys paying a high car insurance premium if the car is sitting idle or not deriving any significant economic value. And, as an owner of the car, you cannot even let the policy lapse or keep the vehicle uninsured as car insurance is mandatory under the Indian law.
As an owner, you want to pay a reasonable premium that satisfactorily covers all your insurance and legal needs. So, let's look at all the ways in which you can lower your car insurance premium. But, let's first understand how the premium amount is calculated.
Your car insurance premium depends on the following factors:
By and large, these are the major factors on which your car insurance premium is calculated. However, there are quite a few hidden clauses that can help you cut your car insurance premium down.
Raise Your Policy Deductibles You can reduce your car insurance premium amount to a great extent if you raise your policy deductible. The policy deductible is the amount paid from your own pocket when you make a claim to the insurance company. For example, if you have made a total claim of Rs 100,000 to the insurance company, and you pay Rs 25,000 from your own pocket, then the final settlement amount will be Rs 75,000. The higher the deductible amount, the lesser your insurance rates. But you should select as much as you are comfortable with. Never go beyond your financial means. You can also opt for higher voluntarily deductibles if you fall under the following category:
Car insurance is the single biggest component in your car maintenance cost, and a high premium amount severely impacts your ownership experience. Steps like buying an online car insurance policy, raising policy deductibles, shifting to a new insurer with attractive policy terms, etc. will help reduce the coverage rates considerably. Also, the advent of fintech platforms, which offer attractive deals and discounts, can further lower your car insurance premium.