Kolkata: Motor insurance is a mandatory requirement in India. Every insurance policy needs the insured party to pay premiums to the insurer and car insurance premiums too can be reduced a bit by following certain tips that experts share. Incidentally, some of the factors deciding the premium are value of the vehicle and type of coverage, which are obviously not under the control of the vehicle owner. But some of the factors can be controlled by the policyholder since these have to do with the frequency of premium payment, track record of claims etc.
Car insurance is a service that has to be done every year. Therefore, the right approach can help the owner of the vehicle to control expenditure on this item. And in the long run the amounts saved is not really insignificant.
One can pay monthly premium
It is always convenient to pay insurance premium once a year and be done away with a botheration. However, paying the annual premium once upfront can involve a significant payout that might not ne easy on the pocket of many. Some insurance companies are known to be offering monthly payment which, reports state, do not involve extra costs compared to what annual premiums entail. This obviously puts less strain on the pocket of any car owner. The most significant point is there is not difference in the coverage between the annual premium and monthly premium modes. Therefore, one gets the same coverage and service along with the benefit of a better cash flow management.
Don’t claim every small amount
The no claim bonus is a significant benefit that many car owners don’t think through. If you can spend a year without claiming anything, you can get rewards. According to reports, these can be even 50% of the premium over a few years. Most car owners are either not aware, or overlook this feature and end up making all small claims and thus squander major benefits on reduction of premium. For example, one can perhaps skip claiming a Rs 2,500 expenditure on a minor repair which can jeopardise a benefit a few times of that amount due to no claim bonus. Experts point out that no claim bonus should be transferred if one is buying a new vehicle.
Another point is to scout the market for vehicle insurance and not fall for the one offered by the dealer of the vehicle. Exploring options for car insurance can be done online and it might save you a sum if you are ready to spend a small time researching what is available in the market. All vehicle dealers usually have agreements with a specific insurer and you could become a prisoner to limited choices.
Car insurance is mandatory in India. Every insurance policy needs the insured to pay premiums. But there are ways to bring down the premium one pays for car insurance, which unfortunately do not receive as much attention as health insurance premiums. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
