There are a number ofcompanies which offer motor insurance covers, thus, choosing the best one can often be a daunting task. However, if your car is under five years, then you would be the preferred choice for most of the insurance companies. Thanks to the technological advances and the internet revolution; now you can even buy car insurance online India. Therefore, rather than blindly opting for an insurance company, you should compare and check for the best insurance policy cover online.
There are two basic types of motor insurance covers and they are as follows:
Third-party motor insurance cover: The government of India has made it mandatory for all the vehicle owners in the country to own a third-partycover. This insurance policy covers all the financial as well as the bodily damages caused by you to the third-party. However, this policy doesn’t cover the capital and bodily harm caused to you. The premium of third-party car insurancecover is lower than the comprehensive cover.
Comprehensive cover: The comprehensive insurance is like an add-on over the third-party motor insurance policy. The comprehensive policy not only covers the damage caused to the third-party but also the damage caused to you. Thus, even if the premium of a comprehensive cover is more than the third-party insurance, it is still a better option to go for.
The factors that influence your motor insurance premium are as follows:
Your location: Believe it or not! But your location pretty much decides the amount of money that you are going to shell out for your car insurance policy. This amount is determined and differs on the basis of your RTO registration. The reason being, if you are living in a city or places with a high density of motor vehicles, then the chances of you getting in an accident are high. In the same way, if you are living in an area with a high crime rate then you will have to pay a higher amount of premiums.
Insurance cover: The type of insurance cover that you opt for determines the amount of premium that you will be paying. Because, if you are opting for a third-party cover then you will pay a lower amount of premium in comparison to the premium for comprehensive cover. This is because of the fact that the comprehensive policy covers more damage in comparison to the third-party policy.
Car’s age: The IDV (insured declared value) is the overall value of the car which recedes with each passing year. Thus, this has a direct effect on the amount of insurance premium that you pay. The reason being; the older your car gets, the more are the chances of it getting damaged. Thus, the older your car gets the larger amount of premium you cough up.
The following are the ways through which you can reduce your car premium:
Choose the motor insurance cover according to the benefits which are best suited for you.
Purchase car insurance online India, so that, you can compare the benefits and premium amount of the policies.
Make sure that you settle the minor claims and damages by yourself, as it directly affects the NCB (no-claim bonus) that you earn each year.
Instead of opting for a monthly or quarterly premium, make sure that you opt for an annual premium. Because you reduce your premium amount by opting for an annual premium payment.
Like it? Share it!
About the Author
john Joined: January 28th, 2019 Articles Posted: 5
