How to Avail the Best Car Insurance at Affordable Premium Rates?

‘Budget shopping’ is something that most people prefer. The same applies when buying insurance for your car as well. People wish to avail the best car insurance policy, i.e. one that offers multiple features but at a low price. Here’s where budgeting can help you. You don’t necessarily have to compromise on the features or benefits to reduce the premium cost on your car insurance policy. What’s important is to balance out every aspect along with the price to be paid.

Why do car insurance prices differ?

You will find two major types of car insurance policies in the market. One is the basic and mandatory third party car insurance , whereas the second is the more extensive cover, i.e. a comprehensive car insurance policy. The former does not cost much as its prices are declared by the Insurance Regulatory and Development Authority of India (IRDAI). However, the price of a comprehensive plan differs and depends on the insurance company you’ve chosen as well as the extent of the coverage. Prices vary because every insurer provides you policies at different rates. Another advantage of purchasing a comprehensive policy is that you can opt for additional covers (add-ons) and enhance your existing plan, making it the best car insurance policy. However, these covers come at a cost and add up to your premium amount. Each insurer offers their add-ons with different caveats and at different prices.

Variables that impact car insurance premium

Insurance policy prices differ according to the information you provide to your insurer. The car insurance premium amount is determined by various factors such as the Insured Declared Value (IDV), year of manufacturing, location of registration, make and model of your vehicle, claim history, etc. Make sure you don’t provide false information as it can lead you into trouble. These are the factors that impact the price of the car insurance policy. However, you can modify some other features. Here are some variables that also have an impact on car insurance premium directly but can be altered.

1. Voluntary Excess

With an increment to amount of voluntary excess, the car insurance premium can be reduced. When you choose this option, you agree to bear a certain portion of the liability in the event of a claim. This results in you paying more during a claim; however, the cost of the premium is also reduced due to this. This can benefit you in the long run as you would pay a lesser premium over time.

2. Add-on Covers

These are extra covers that you can add to your existing comprehensive car insurance policy. This is because a basic policy might not be able to fulfil all your expectations; hence, insurance companies have come up with additional covers to enhance your plans and give it a personalized touch. For e.g., in case your car’s engine gets damaged, the repair charges would not be covered in your basic plan. However, if you purchase an Engine Protector add-on cover, your savings will not be affected and your engine will also be repaired. People hesitate to purchase add-ons because they increase your premium cost, but when used prudently, they can come in very handy. Hence, to have affordable car insurance, only purchase the add-ons that you require. To get your hands on good deals, you can go online and compare various car insurance policies along with the add-ons each offers. This will help you understand which insurance company offers you a desirable cover at a budget-friendly price.