Affordable card Insurance; Tips for Car Insurance purchase

 

Here are tips for finding affordable auto Insurance:

The prospect of saving money on auto insurance, or any kind of insurance for that matter, is appealing. Once you know what to look for in a policy that will keep costs down, buying car insurance will be a breeze. Hence, one needs to understand the basic features – no claim bonus, insured declared value, deductibles, voluntary additions – and by doing so, the scope of saving money on a motor insurance policy.

Best Practices for Finding Affordable Auto Coverage

1. Compare Various Auto Insurance Quotes

Purchasing a policy for your automobile online is a great way to save money and time. When comparing auto insurance policies, it is important to think about how much you would be willing to pay for a premium that includes all the coverage you need. Learn which insurance policy is necessary for your vehicle by looking up its make, model year, and fuel type (gasoline, diesel, or compressed natural gas). You can now easily compare insurance policies and costs by requesting quotes online from multiple providers. You can save money on auto insurance and find coverage from reputable companies by doing a thorough comparison search.

2. Bonus for Not Filing a Claim i.e. No Claim Bonus

The No-Claim-Bonus provision of a car insurance policy is one such feature that should not be overlooked in the pursuit of a low-cost policy. Insurance companies often offer discounts to policyholders who remain claim-free throughout the duration of their coverage. Annually, you can expect a no-claim bonus anywhere from 20 percent to 50 percent. No-claim bonuses (NCB) are offered to customers even if they decide to trade in their vehicle for something else.

3. Value of Insurance required i.e. IDV of car

Its Insured Declared Value (IDV) represents your car’s current market value. Your car is considered a "complete loss" if it is stolen or if it is damaged beyond repair. When this occurs, the insurer will pay you the Sum Assured, which is the Insured Declared Value of the car as determined by the Depreciation IDV formula. Insurers offer a discount of 5-10% to minimise the category IDV that can be opted by the insured. If your IDV is low, your premium will be too. However, in most circumstances, there are predefined formulas for this.

4. Deductibles

A deductible is a sum you are willing to pay in case of an accident or collision. There are two types of deductibles — voluntary and forced. A voluntary deductible is the amount one is prepared to spend to minimise insurance costs. Compulsory deduction is a mandatory contribution when a claim comes in. Therefore, you can minimise the insurance rate by increasing the optional deductible.

5. Make and Model of car in important in determining the insurance amount

The make of your vehicle, engine volume, model, speed, version etc. are essential elements that affect the rate for car insurance. These elements also affect how a car operates and how often it is to break down, which is again a key parameter in premium computation.

2. Age of Car

The age of your car is one of the main deciding factors on how much premium you have to pay. As the car get older its value get depreciated so as the IDV amount associated with it also get reduced along with insurance amount to be paid for getting the insurance.

A new car will have a higher IDV (insured stated value) and hence a higher premium. This indicates that it will cost less to insurance an old car and more to insure a new one.

3. RTO Location

Location of the RTO where the vehicle is registered also plays a role in determining the insurance rate. Since cars are more likely to be damaged and run of vehicles is expected to be more in densely populated locations, insurance premiums in a Tier 1 or two city will be higher than in a Tier 3 or four city.

4. Complementary Elements/ Ad-Ons

The cost of insurance will go up if you opt for features like a GPS tracking device, passenger cover, passenger lock, zero depreciation, the door handles or other added on luxury accessories. Therefore, it is recommended that you only purchase the extras that you consider necessary.