Insurers quote the most appropriate and the lowest premium rates based on your credit-based insurance score. The factors determining an ideal credit score are:
Your payment history, late payments and delinquenciesLength of your credit historyTypes and number of credits, such as loans and credit cards
Age, marital status, ethnicity, sex, address and income are never considered when determining your car insurance credit score.
8. Personal Accident Cover
With 1214 road accidents occurring every day in India, you can never be too safe to guard yourself and your family against severe financial contingencies. Personal accident cover is as follows:
Accidental death from a mishapAccidental partially or total disabilityAccidental dismemberment of limbsInjuries and death due to a act of terrorismMonetary relief as daily payment during hospitalisation
Advantage of the personal accident plan is:
Can be bought as personal or family policy No documentation and medical tests required Low premium and wide coverage Coverage is worldwide Child education benefit Certified and easy claim process 24 x 7 Customer service Legal expenses are covered Double indemnity for impairment or demise when traveled in public transport Funeral expenses are covered Highly customization plan. Bundled Car Insurance
Bundled car insurance is for more than one car in a single household from a single insurance company. This type of insurance will help you get car premiums at a discount.
10. Knowing About Compulsory Deductibles
A compulsory deductible is a minimum amount that you, as a policyholder, need to pay for each and every claim. The amount of compulsory deductible varies from Rs.50 for a two-wheeler to Rs. 500 for a four-wheeler as per the Insurance Regulatory and Development Authority of India (IRDAI) rules.
Higher deductible might be charged for an older car with a higher claim-risk. A higher deductible can also be charged in the cases of cars with bigger cubic capacities and other scenarios where the risk of a claim is perceived as big.
Compulsory deductibles do not help in lowering the car premium though.
11. Low Premium Costs Through Voluntary Deductibles
A Voluntary deductible, as the name suggests, is not mandatory. Voluntary deductibles help in lowering the car premiums. This option allows you to share the repair costs in case of a claim, so it lowers the insurance premium.
Deductibles compulsory and voluntary are only provided in comprehensive coverage policy.
12. Familiarising Yourself With Your Car’s Insured Declared Value (IDV)-
The Insured Declared Value (IDV) of any car is the maximum amount that can be claimed under an insurance policy. It is the amount you get if your vehicle is stolen or gets totally and irreparably damaged.
A brand new car has a higher IDV than a year-old one of the same model. So it can be said that the IDV is the current market value of the vehicle.
If you subtract the depreciation value from the selling price, you get the IDV. It excludes the registration and the insurance costs though. Also, the IDV of accessories needing the insurance (not the factory fitted ones) is separately calculated for an additional cost.
The insurance premium is calculated considering the factors like the IDV, the model, etc. So knowing about the IDV of a car is important.
13. Knowing About The No-Claim Bonus (NCB)
A No Claim Bonus is what you get as an additional cover if the policy hasn’t been claimed for the duration of one complete year. In case of you not claiming your motor insurance policies for a full one year, the NCB comes into play, and you get about 5-10% of the IDV as a bonus upon renewing the policies. The bonus can go up to 50% at the most.
14. The Geographical Location And The Car’s Cubic Capacity Matter
Your insurance premium costs might be higher if you live in a metro compared to the insurance costs of the same model if you were living in a non-metro or rural area. The car’s geographical location is taken into account in your premium. Plus, the cubic capacity of the car’s engine also factors into car insurance premium costs.
15. Customising Your Car Keeping The Insurance Policy In Mind
Some vehicle parts do not get coverage under your regular auto insurance policy, following the modification. Usually, they are engine parts and some other mechanical ones.
The standard insurance plans cannot be extended for every customised part. It is always better to check with your insurance agent before customising your vehicle.
16. A Cashless Option Is A Big Plus
An insurance company that provides a cashless option is a good choice as it helps in the case of emergencies and saves you from the hassle of running around for cash. However, you should not choose an insurance company just for this factor while overlooking others, but if it provides a cashless option, then it is a big plus.
17. Proximity Of Network Garages Is Advantageous Too
Checking for the number and the proximity of garages in your location is an important factor to keep in mind before choosing an insurance company. More network garages in close proximity are always good. You can ask around and get feedback to make an informed choice.
18. A Speedily Issued Insurance Coverage And Policy
One important factor to keep in mind while selecting a car insurance company is how soon it can provide you with the insurance coverage. How fast the policy gets issued should also be taken into account. Today’s technological advances have made fast services possible. As a buyer, you should make sure to choose the insurance company that does not take months to issue the policy.
19. Customer Service and Helpline
This could be considered a not that important factor to look into a company when buying a car insurance. But once you buy insurance, then the customer care and support will come into play for all you future worries regarding the aspects of your insurance policy.
The feedback of other persons will prove beneficial in learning about how strong and efficient the customer support of a company is. You could check for online reviews or ask your friends about the customer services of various companies. Check for 24x7 customer helpline facility which would help you reach out to your company in your time of need.
20. Buying An Insurance Policy Online
This is a cost-effective and a faster way to get car insurance than by normal paperwork. You can compare different policies online from one place before zeroing in on the one that best suits you. It is paperless work, and after the issuance of your policy, you can access it from anywhere.
