HOW TO LOWER THE CAR INSURANCE PREMIUM

HOW TO LOWER YOUR CAR INSURANCE PREMIUM

In India, every year massive number of vehicles get insured. Have, you ever imagined how company make profit from your insurance and how they actually customize your insurance which is quite irrelevant and you are ended up paying premium of those Add-ons which are not necessary. Now, the bigger question is that why some representative of your car company calls you and continuously remind you for the renewal of your car insurance and somehow they not only manage to take the appointment from you, but also come with the invoice of your insurance that you need to pay and create urgency and they hardly bother to make you understand the details of policy which they are offering. And, in this cut throat busy schedule, most of the people hardly care about going through the details of the insurance premium amount. Lacking of knowledge about the calculation of this insurance premium  amount could also be the reason of negligence.

Most of the companies are aware of your above situation and they take the full advantage of your negligence. But, by the time you finish studying the below details you are in situation to save upto 30% of  the total amount of your premium.Let us first understand the types of vehicle insurance that companies are offering.

Types of insurance

I)   Comprehensive 1 year / standard policy.

II)  1-year third party policy.

III) 1+3 bundled comprehensive policy.

IV) 3 year third party policy.

In above types, the first and third one is very common .In first one i.e Comprehensive 1 year / standard policy you pay the premium for the first party and the third party  for only one year. . And in the third one i.e  1+3 bundled comprehensive policy you paying premium for the first party for one year and three year premium of the third party. In 1+3 policy only advantage is that you are paying the three year party insurance prmium in advance which actually saves you from every year hike in the third party premium that could be around Rs.1000/- to Rs1200/-  for vehicles upto 15 lakh, it keeps on increasing as the vehicle price increases. But, you should be aware to take the first party insurance for the next two years when the policy is expiring for every consecutive year in the 1+3 bundled comprehensive policy .It is upto you which plan suits you according to your budget.

Now, the remaining other two policy i.e 1-year third party policy and 3 year third party policy  is quite understandable by the nomenclature itself. As per the government norms, it is necessary to a have at least the third party insurance.

Alongwith that, the basic owner damage insurance and the third party insurance, the Add-ons are important things which adds security to your claim. Let us discuss about the different Add-ons listed below and its importance:-

Types of ADD-ONS

1.   ADD on - Zero depriciation

2.   NCB- protection

3.   Compulsory owner driver

4.   24x7 Roadside assistance

5.   Engine protection cover

6.   NCB protector

7.   Keyand lock replacement

8.   Consumables

9.   Daily allownce

10. Invoice price

11. Tyre protector

12. RIM damage cover

Note:- Addons are not compulsory.

From the word itself Add-ons means adding something which improve the value of your policy. Add-ons are quite important generally if you are taking the new vehicle. Generally  insurance company ask you about the zero depriciation Add-ons but they hardly tell about the those Add-ons which could be very useful for you at the point of making claim and also while paying the premium the policy. By taking the zero depriciation people think that there vehicle is fully covered in insurance, but it is not like that ,  there are various other Add-ons for the different conditions which you should add according to your need. You could ask about the details of the above Add-ons from our insurer.  Here, we will discuss about  the important Add-ons which one should include in its policy and those are  ADD on - Zero depriciation , NCB protection and Consumables.

 Zero depreciation Add on:- Zero depreciation Add-on provide the whole coverage to your vehicle from damage except the consumables like coolant , nut washers and bolts etc. Most of the people think that getting Zero depriciation Add-on means you not need to pay a single penny of your damage. But, it is not like that, you have to pay for the consumables , you should ask the insurer for the details of the consumables and what will be amount need to pay for consumables for per lakh of claim.

NCB ( Non claim bonus) protection :- Most of the people hardly listened about the NCB protection, as most of the insurance company don't tell the insurer about the NCB protection . NCB is very useful in protecting your non claim bonus even if you have taken the claim on your vehicle. It is not actually money saver but also very beneficial in safegurding your NCB . By taking the NCB protection for every consecutive year you will reach upto 50% NCB level and can save money.

Consumables:- Consumables are those components of vehicle which are not covered under the Zero depreciation Add-on. You should be well aware of  the list of consumables which the company not taken under coverage of  Zero depriciation Add-on. Otherwise, during the claim, you find that your bill includes the charge of consumables and you will end up in surprise. So, if you adding the consumables in your policy then during the claim the company is not going to charge you for consumables like coolant , washers etc.

Number of Claims:- Generally, company do not mention the number of claims they offer you for an year. But, now a days, companies generally  offer you the multiple claims depending upon the premium of your policy.It is better to get it cleared from your insurer about the number of claims they are offering before taking the policy.

PA owner driver cover:- Apart from above. if you drive your car yourself and not using driver then one thing which is important that you should insured yourself from accidental death and that can be done by taking  PA owner driver cover which gives about  sum assured of Rs.15,00,000/- in approx premium of  Rs750/- and this one is  also optional. You can avoid this if you are having life insurance. Alongwith that, you can avoid insurance coverage of paid driver also.(Paid driver means he is getting the salary slip from his employer).

Mostly, people don't compare and customize there policy . So, it is highly recommended that you should compare your policy from the different companies. Because, different companies have the different amount of premium for same policy which actually saves your money.