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Points for the best results from your car insurance policy

 Points for the best results from your car insurance policy

If the cost of your car insurance plan drags you down, use these tips to make the most of your car insurance policy. Read on to learn more.

When it comes to buying a car, you plan to look for its model, cost, engine, tires, etc. So, why not follow the same party while choosing a car insurance policy? You should not underestimate its importance as it is vital for you as a car buyer to consider car insurance and provide the best of it to ensure future financial security. Let's discuss some of the key factors you should consider before buying an online car insurance policy.

1. Choose a policy according to your needs

Car insurance comes with two insurance plans that include third-party car insurance and comprehensive car insurance. Third-party coverage is mandatory and only concerns third-party obligations, while a comprehensive plan that provides coverage to third parties in addition to their damages expenses is recommended. Non-cheap liability coverage is limited, while the overall plan is more expensive because it provides extensive coverage. Therefore, you should consider your needs and budget before purchasing a car insurance plan. 

2. Insured Right Declared Value (IDV)

The declared insured value is the final factor that determines the premium on your car. The current market price of your car is known as IDV and is also the amount the insurance company provides policyholders with for a stolen or irreparably damaged vehicle.  However, you should know that the higher IDV value will increase the premium and IDV will reduce the claim amount. Therefore, you should not declare the wrong IDV to provide the premium because it may provide you with insufficient coverage during the settlement of the claim.

You may also want to read: The benefits of renewing hdFC ERGO car insurance policy 

3. Choose add-ons covers wisely

The additional covers are intended to expand your policy coverage. You can choose any required addition by paying an extra premium for it. There are many covers available to choose from such as zero consumption coverage, back to the bill, engine protection coverage, roadside assistance coverage, passenger accident coverage, And so on. Each additional coverage carries a unique benefit that you must choose according to your budget and requirements. 

4. Keep your NCB intact

There is no claim bonus (NCB) that refers to a bonus in terms of the discount that insurance providers give to their policyholders for not filing a claim in the policy year. To keep the bonus intact to take advantage of its discount on the premium of the coming years, you must keep your policy active by renewing it and not making any claim in the policy year, otherwise, you may lose the bonus accumulated over the years which can rise to 50% for 5 consecutive claim-free years. 

5. Choose discounts carefully

The discount indicates the percentage of cost that the insured person agrees to pay at the time of the repair or settlement of the claim. Discounts are of two types such as mandatory and voluntary deductions. Under the voluntary deduction, you can choose to pay the percentage of discounts but under the mandatory discount option, the insurance company decides the percentage of the claim amount you need to pay by the holder The document. Higher discount means a lower premium paid by the customer, so you must choose discounts according to your premium payment capacity.

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.

Factors that determine car insurance premiums

Here are some factors that affect your car premium and know what can help you make the right call while buying or renewing your policy:

1. Make, model and alternative

Premium car insurance for luxury SUVs will be higher compared to hatchback. This is due to the basic composition of the car as with the specifications the cost of the car increases and decreases, which increases the burden on the insurance company. Thus, the manufacturer of your car, alternative, etc. will affect your car premium directly.

2. Car age

The age of the car brings in the concept of consumption on the IDV of the car. Depreciation is a decrease in the value of assets due to wear and tear over time, while IDV refers to the current market value of the car. Over time consumption will increase making an old car have less IDV. In simple terms, it will cost less to secure your old car and more to secure a new car.

3. Car location

The cost of buying an insurance policy to secure your car in metro city will cost higher than buying a plan in a level 2 or 3 city. The reason for this is that cars are seen to be more vulnerable to losses or damage in an urban city for reasons such as traffic, congestion, crime and so on.

You may also want to read: The benefits of renewing hdFC ERGO car insurance policy 

4. Policy coverage

The cost of your car insurance plan depends on the type of policy you own. If you only have a third-party policy covering only third-party obligations, your premium will be minimal. On the other hand, if you have purchased a comprehensive car insurance plan that gives coverage to third-party obligations as well as your damage expenses, then you will have to pay a higher premium amount to take advantage of the coverage extensive.

5. Add on covers

Additional covers are additional coverage that provides additional protection for your car. You can choose extensions by paying a little more premium to add some additional coverage to your car insurance policy. Additional covers include zero depreciation coverage, return to bill coverage, passenger coverage, etc. Since you'll have to pay an extra cost to take advantage of these covers, it means that the more extras you choose, the more your premium amount. Therefore, you should choose the plugins you already need.

6. No claim bonus (NCB)

Insurance providers offer a bonus in terms of a discount known as "no claim bonus" to their customers for not filing any claim in the policy year. With each claim-free year, the bonus that you can get a bigger discount on your car premium during renewal increases. However, you should check the NCB component of the policy while purchasing a plan and during renewal to get the real picture of your premium.

7. Anti-theft device

To protect your car with an anti-theft device authorized by the Automobile Research Association of India (ARAI) can reduce the chances of car theft and make your car a little safer. Because it reduces the possibility of getting your bike stolen, it ultimately reduces the burden on your insurance company as well as to compensate for the loss. As a result, you may bring a discount on your car's premium. 


If some factors can increase your car premium, at the same time, using it accordingly can reduce your car premium as well. We have described some factors that can affect your car premium and conducting research on these can help you finalize your car insurance plan according to your budget and requirements.