Cheap Car Insurance in India: A Simple Guide to Save Money
Cheap Car Insurance in India:- Car insurance is not only a legal necessity in India, but it is also a buffer to the safety of your car and your money. However, to be realistic when the majority of us think of insurance the majority thought must be: How much is this going to cost me?
You are not the only one and you are looking to buy cheap car insurance in India. And everybody wants to spend less, and with all the insurance companies on the market, it is quite achievable to find out an affordable plan without too much consideration of the required coverage.
This article will dissect the fundamentals of affordable automobile insurance in India, how you can reduce your premium and some personal tips that have served me well.
The Process behind Mandatory Car Insurance in India.
It is best to get the concepts of why insurance is compulsory before we discuss how insurance helps you save money.
The Motor Vehicles Act in 1988 stipulates that all car owners in India should have a third-party liability policy. This is to make sure that when your car is involved in damaging some other individual or a car or property the expenses are taken care of.
It means that without insurance you will not only be imposing huge fines upon yourself, you might be also entering the world of legal trouble.
Car Insurance types in India.
.webp)
- Third-Party Insurance- It is the least expensive and simplest one. It merely encompasses damages to another vehicle, person, and/or property. But it does not include your own damage.
- Comprehensive Insurance – This is a little higher but covers your own car and third party damages. In case your vehicle is new and expensive, this will be a better choice.
Third party insurance is the cheapest insurance to people who want purely cheap car insurance. However, a simple overall plan could end up saving you more in the long run should your vehicle be damaged.
How do I Find Inexpensive Car Insurance in India?
.webp)
The big question now is how do you save money on your car insurance?
Here are some practical ways:
Compare Online.
Don’t buy the first policy you come across. You can easily compare plans through websites such as Policybazaar, Coverfox or portals of the insurer itself. It once occurred to me that I saved almost 3,000 rupees by simply changing the insurer through the Internet.
Select only the Add-Ons you require.
Insurance companies are always keen on selling you additional options such as zero depreciation cover, roadside assistance, or engine protection. These are useful, although not all of them should be purchased. In case of an old car for instance, zero-depreciation may not be the best option.
Increase Your Voluntary Deductible.
It is the sum that you accept to pay out of pocket in the event of a claim. A larger deductible will tend to decrease your premium. However, watch it is not too high or you could find yourself regretting it in an accident claim.
No Claim Bonus (NCB)
You will receive a discount on the following year of premium provided you do not make any claim during the policy period. This discount will be increased to 50 percent in five years. Therefore, unless it is a major repair sometimes it is better to pay little damage on your own and retain your NCB.
Install Safety Devices
Premiums could be slightly reduced on cars with anti-theft devices certified by ARAI. Not a big one, but every bit matters.
Renew on Time
Without your policy renewing, you lose your No Claim Bonus, and in some cases must pay a new inspection. Set a reminder for renewals.
Top Insurance Companies in India to get cheap car insurance.
Although cheap can mean different things to different people based on your car, city, and driving history, the following are some of the insurers that are known to offer good prices:
- ICICI Lombard
- Bajaj Allianz
- HDFC ERGO
- SBI General Insurance
- Tata AIG
- Reliance General Insurance
The policies of these companies tend to be low-cost, particularly when you compare and contrast online before purchasing.
My Individual Account of Cheap Auto Insurance.
The first car that I purchased had the insurance that was recommended by the dealer. It was convenient and I later realized I had paid almost 4000 more than I would have paid online.
The following year, I was more than willing to visit the online portals myself. I have compared 4 or 5 different insurers, chosen a general plan with a single add-on (roadside assistance), and paid considerably less. It was at that time that I realised the importance of doing a little homework in lieu of blindly renewing.
In my opinion, therefore, you should never forget the price comparison. A 10 minute check could save you thousands of rupees.
How to keep your premium down each year.
- Be safe and do not be involved in accidents to avoid losing your No Claim Bonus.
- Shun unnecessary add-ons.
- Install simple safety precautions in your vehicle.
- Pay once a year (rather than monthly).
- To decrease the risk of theft, park in secure places.
.webp)
0 Comments