Tips To Reduce Your Car Insurance Premium

By Policybachat . Posted on November 3, 2014

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Giving in to the long pending demand of the general insurance companies, the Insurance Regulatory and Development Authority (IRDA) of India has hiked the third party car insurance premium by 10-65% across private and commercial vehicles with effect from April 25, 2011. The insurance regulator has also agreed to the industry demand of annual review of third party premium rates.

The premiums for private cars and two-wheelers have been increased by 10% while for commercial vehicle the hike is 65%.

Even though the car insurance bills will be going high, it will continue to remain a necessity for vehicle owners. Hence, the best way out will be to evaluate your motor cover, re-shop if necessary and make sure that you get a good deal.

Signing up a car insurance policy requires you to select the deductible amount. It is the amount that comes into the scene whenever the need arises to raise the car insurance claim. It is the part of the loss or damage occurred that you are willing to pay out of your pocket. The rest of the amount is paid by the car insurance company.

How deductibles help reduce your car insurance premium?

Signing up for a car insurance policy requires you to select the deductible amount. It is the amount that comes into the scene whenever the need arises to raise the car insurance claim. It is the part of the loss or damage occurred that you are willing to pay out of your pocket. The rest of the amount is paid by your car insurance company. The amount or percentage chosen as deductible would determine the premium amount of your car insurance policy. The higher the deductible, the lower gets the premium.

While determining the amount of deductible, the following should be kept in mind:

How often do you need to claim the insurance?
How much do you need while covering damages?
How much premium are you willing to pay every month?

After considering your driving record and how much you need to cover up for the loss, you need to balance between how much you want to pay as premium and how much you can afford to pay as deductible in case of any car-damage caused.

Keeping a clean record helps reducing car insurance premium

A thing to be noted here is points are typically assessed to a driver for moving violations. Less  points can help you get cheapest car insurance premiums. Hence, if there are not many instances of car accident, you can choose high deductible since paying for damages once in a while will save you many bucks when you pay considerably less for premium every month.

Named drivers and friends and family 

If you have previously been insured as an additional driver on another policy, see if you can transfer a no claims bonus to your own insurance coverage. Some insurers do this. Try for a discount by insuring two or more vehicles between friends or family members with the same firm.

Check for change in car insurance premium in case of change of the vehicle

If you decide to change your car, check with your insurer if the model will have a significant effect on the premium. Sporty cars can attract a high premium and often a slightly different model or smaller engine can make a big difference in your favour.

Compare car insurance prices offered by different insurance providers

Use an online comparison service to do the hard work for you. Put in your details and check the prices that come up. You can alter the excess that you are willing to pay and the mileage you will drive and get new quotes. Also check the insurers that don’t feature in comparison sites.  Choose Policybachat to compare and buy car insurance online. Call 1800-123-4006 to talk to our insurance experts.

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