Be it a brand new car or a second hand purchase, you have to get a car insurance on immediate basis, without which driving on a public road is strictly illegal. Not just the legal quotient, in case your vehicle meets with an accident and leads to severe damage you might have to shed a fortune to get the repair work done. Or even worse, you end up hitting somebody else’s vehicle accidently and cause damage. Such scenarios are no less than a nightmare, but instead of entering the panic mode and creating havoc stay calm and invest in a good car insurance policy.
Generally car insurance policies are broadly comprised of Third party liability only policy and comprehensive cover. Third party liability protects third person, property in case your vehicle causes the damage of vehicle or death, disability of the third person. It is the mandatory policy and you must have before driving, so as to avoid penalties charged by traffic police. However, comprehensive plan is designed in such a way that it offers an all-round protection by giving own damage cover as well as third party liability. An all-around car insurance policy protects your vehicle from theft, fire damage, natural calamities damage, and accidental damage and offers personal accident cover for both drivers and passengers.
If you are convinced enough to buy a car insurance plan, please know that renewal is as important as buying. Mere buying car insurance for the first time will secure you for the first year, you have to renew it every year to stay protected and enjoy continuity benefits. Buying an insurance policy for your car is a very good decision, however many of us fail to renew the policy on time. It’s important to understand that renewals are equally important. If you do not renew your policy and it gets expired, you would have to lose out on a lot more things. Similarly, if you renew your car insurance on time you will save a lot on your annual premiums.
Here are 5 important tips that could help in saving money while buying car insurance
- No claim Bonus
Renew your policy every year to ensure you enjoy no claim bonus on your next year policy. To elaborate on the thought, no claim bonus is a reward offered in form of premium discount for your ability of making no claims and driving safely. If you don’t renew your policy you will lose out on NCB benefit.
- Claim higher deductibles
If you opt for higher claim deductibles then your premium amount would reduce leading to lower premiums. If you opt for higher deductibles you will have to pay a share in case of claim reporting.
- Return to Invoice Add On cover
In case of total loss, your insurance company pays you up to IDV only, however the actual vehicle cost with taxes and depreciation is much more. Hence, if you opt for return to invoice add on cover you get the total amount instantly without any deductions except the insurance policy first premium. This helps you in saving money in a long term, premium may increase but the ultimate benefit in case of total loss is impressive.
- No inspection
Ensuring timely renewals will help in saving time and give continuity benefits. Your car would not go under inspection and help in instant policy issuance. Missing out on renewals may deprive you of benefits and lead to higher premiums.
- Ensure safe driving
If you are driving safely without causing any damage or registering claims, it keeps your vehicle scratch and damage free and help in lowering premium or offering a better IDV. A vehicle that faces a lot of accidents due to driver’s negligence or loss of expertise may have to incur higher premium or land up with insufficient cover.
Keep the above tips in mind before buying a car insurance policy or renewing your existing one, it can help you in saving premium amount and also give you a much wider coverage.