8 Things To Keep In Mind While Buying Car Insurance
Vehicles like cars and two-wheelers are the most extensive modes of transportation in today’s day and age. The probability of vehicles being involved in an accident is on an all-time high due to the rise in the number of vehicles as well as their nature of being fast and dangerous.
In order to safeguard from any uncertainties, it is mandatory for a person to purchase a third party insurance for the vehicle at the time of its purchase.
The insurance protects the interests of the owner as well as the vehicle. It is very important for a person to do an extensive research and then find the appropriate vehicle insurance as per his requisites.
In order to invest in a suitable insurance for a car, the owner is supposed to keep an eye out for the pointers mentioned below.
1. Car make and model
The insurance premium is majorly affecting by the model, brand, year of a particular car. All insurance providers have a dedicated data on car models and their ranking on the expected premium provision board. Before deciding to purchase a new vehicle, the vehicle owner should have the knowledge about the various insurance options and their respective premiums. This would help them in knowing the indispensable variable expense of the vehicle and help in making a wise decision.
2. Ample research
Investing in an appropriate car insurance is very important to safeguard the substantial risk of driving on Indian roads. With the availability of multiple motor insurance options available in the market today, a buyer can get very confused. There are a number of web aggregators that come to the rescue. There are tools and calculators available on these sites which help the buyer to ascertain the appropriate car insurance as per their requirements.
3. Assessment of various voluntary deductions
By definition, voluntary deductions are the amount of sum which has to paid by the insurance holder in case of the occurrence of an uncertain event. It is very important that a person should clearly evaluate the voluntary deductions which are associated with each plan. This would help the insurance buyer to outline how much he is willing to pay personally at the time of an accident. It should be noted that the amount of premium to be paid by the insurance buyer is inversely proportional to the number of voluntary deductions. The lesser the number of voluntary deductions, higher the premium amount.
4. The benefit of being careful
A careful and alert driver is likely to be less involved in accidents in comparison to a reckless driver. A person buying insurance having a history of accidents and multiple claim filings is generally a lucrative option from the viewpoint of the insurance company. This is because the premium to be paid by him is generally higher than a person with no history of claim filings.
5. Effect of modification of the vehicle
Installing any high-end gadgets or getting exterior or interior car modifications can lead to the rise in the insurance premium. This is because, with the use of these modifications, the driving style of the person is altered. The modifications can range from alloys, spoilers, shockers, tires and so on. This causes the person to be more prone to accidents and in turn filing more claims. Therefore the insurance provider provides insurance cover to them at higher prices.
6. Policy Lapse Period
Most people end up ignoring their car insurance policy after it lapses and take a long time in renewing their insurance. When the policy becomes inactive, the insured does not get any bonus for no- claim filing or no accidental history.
7. Claim for minor expenses
It is quite advisable for people to not apply for insurance claims for expenses which do not burn a hole in the insured’s pocket. This will make the insured liable to receive a no claim bonus from the insurance provider. The amount of bonus provided is approximately 20% of the premium amount. Thus, it is only advised that a claim should be filed only if the charges to repair the car are more than that of the no-claim bonus amount.
8. Keeping safety a priority
Active members of various safety organizations such as Safe Roads Foundation, Association of Automobiles etc, help in reducing the premium of insurance substantially. As it is a stated fact that an alert and enlightened person is less likely to make any mistakes that would lead to accidents.
The above-mentioned features should be kept in mind by all car insurance takers in order to fully protect their interests as well as make an economical decision and not lose money.