Buying car insurance is not only a legal requirement but also a wise choice to maintain your precious asset protected and secure. It isn't correct to just get any coverage with the lowest premium. The focus should be on buying the very best car insurance for your vehicle following a clearly thought-out plan predicated on practical facts. There are particular factors to be kept in mind while you choose your car insurance policy or opt to buy an insurance policy for the car so that your hard-earned cash and investment in the car in addition to the coverage doesn't go waste.

How to Choose Your Car Insurance Policy

Let's talk to you four pointers that will help you massively while you go for pick your car insurance policy to pay to your car:

Guide to choose your car insurance


Choose your car insurance policy

1. Selecting Insurance

In India : Two types of car insurance are there

(i) Third-Party Liability Insurance
This is a compulsory program for all automobile owners and it covers damage to property, unintentional death, and harm to another party to the contract.

(ii) Comprehensive Strategy
This is a plan that might be a little costly, but it ensures damage to get a vehicle as well as the third party obligations. It also covers theft and damages brought on by events like war, fire, cyclones, floods, etc..

2. Premium

This is what interests most people while buying car insurance. This amount is calculated based among certain factors, That are described below:

(i) According to Vehicle
Based on the age, make, fuel type, etc. of the automobile, the premium amount is established. Particular vehicles like SUVs or vehicles operating on petrol when compared with petrol command higher premiums than their counterparts. Also, at the time of renewal, the age of the car and its own depreciation play an important part while calculating premiums. You have to get your car properly scrutinized to arrive at a figure that works to your benefit, providing sufficient cover at the lowest possible premium.

(ii) Based on Location
For example, if you're living in a component of the city where auto theft is uncontrolled, then odds are that the premium will be greater. Additionally, locations like compact localities, places near highways, etc.. draw higher premiums.

(iii) According to Claims History
In case you've registered for claims in the previous year, there's a good possibility that if you like renewal, then the premium charged to you would be on the other hand. Unclaimed policies lead to no claim bonus the subsequent year and this policy is followed by all insurance companies.

(iv) According to Driver
A car that is driven by multiple people may attract a higher premium compared to a single-driver run car. The thought of car insurance is not only to make life simple for you but also to pay all probable dangers for an insurance supplier too.

Car Insurance


3. Ways to Reduce Premium

There are several smart choices that you can take to reduce the premium on your car insurance policy. If you choose to pay for some petty expenses out of your pocket and purchase a car insurance policy only for major damages, you can reduce the premium amount appreciably. Also, if you buy a car with inbuilt enhanced security features, approved by the Automotive Research Association of India (ARAI), you stand for discounts from the insurance provider. Of course, not submitting claims for consecutively for 3-4 years can lead to a no claim bonus of up to 40-50% in the fifth year.

4. Precautions

There are some common mistakes we perpetrate while purchasing car insurance. First of all, reducing the value of the car while declaring from the form. This might assist initially to reduce the premium, but in case of an accident, this proves real costly. Hence, always try to offer the right value of this car to obtain maximum benefits in the time of an accident. Also, never forget to renew your policy punctually. Post that, you stand to shed discounts and other premium benefits on the new policy.

Car insurance in India is a valid binding and rightly so. But whom to purchase it from and how, depends entirely upon the purchaser. Enjoy this freedom to choose your car insurance and perform thorough research to purchase the best coverage for your car.