Here's how you can lower your motor insurance cost
As per the Motor Vehicles Act, it is mandatory for every vehicle owner to buy a motor insurance policy in India.
One of the earliest big-ticket purchases of our lives is mostly a vehicle. Now, as much as you would claim to love your first car/bike, it’s often excluded from the purview of a good insurance cover. If you’re oblivious to the fact that your automobile deserves significant protection in the form of a comprehensive motor insurance cover, about time we break this bubble. Motor insurance can be very helpful in case of any unforeseen incident involving your vehicle. It’ll help you manage your finances and not put a burden on your personal wallet.
Now, the rise in car prices has a direct impact on the cost of a motor insurance policy. But, if spending a few extra bucks gives you guaranteed financial assurance for the well-being of your vehicle, it’s not a bad deal. However, there are certain ways to lower your motor insurance cost as well. Let’s take a look at those.
Price comparison
As per the Motor Vehicles Act, it is mandatory for every vehicle owner to buy a motor insurance policy in India. In order to comply, one must decide to invest in a policy that is cost-effective and offers significant coverage too. But how do you compare and pick the best motor insurance policy from a plethora of options available online? Some of them may be outright fake or lack enough credibility.
“Purchasing a motor insurance policy online is mainly an instantaneous and paperless process for issuing your policy which may also seem fast and easy. However, in order to avoid falling prey to online fraud, customers must prefer to purchase the policy directly from the insurer’s secure website. The insurance policy must be purchased from a reputed insurer with a healthy claim settlement ratio. The insurer must also have a good network garage and digital support system which will be helpful in case of any unforeseen exigency,” said Gurdeep Singh Batra, head – retail underwriting at Bajaj Allianz General Insurance.
It’s advised to compare the policy features, the premium cost, Insured Declared Value (IDV), etc. directly from the insurance companies websites and buy it online instead of involving small dealers.
Add-ons increase the cost
While certain add-ons like zero depreciation and roadside assistance can be extremely helpful in times of need, one must be extra careful while choosing from a variety of riders available to enhance your motor insurance policy. This is because add-ons evidently increase the overall premium price of your policy.
“Motor insurance add-ons must be opted by customers depending on a specific additional need of the customer which also works as a complete protection plan for your vehicle. Add-ons although are optional for customers, it provides good coverage to customer’s vehicle at affordable prices especially for the coverage they provide,” Batra advised.
Role of NCB
No claim bonus or NCB is like a discount given by insurers to customers for making no claim on account of good driving habits during the policy period. The NCB discount is then applied to your own-damage premium which can be a significant reduction in your overall premium.
“In case of motor insurance claims for minor scratches/damages, customers can evaluate the value of minor damages vs the NCB benefit they would lose if they do file for a claim. If the value of damages is lower, then you can opt to not make a claim and eventually use the NCB discount benefit to lower the own damage premium during policy renewal,” Batra concluded.
These savings via NCB can be utilised by the customer to purchase relevant add-ons and enhance coverage for better protection.