Calculating the Value of Your Car: How to Minimize the Insurance Cost

A car insurance coverage is absolutely vital for any car owner. From compensating damage and/or loss to the insured car, to protecting the owner from legal ramifications, it serves a variety of helpful purposes. In accordance with a law passed by the government of India, Third Party Insurance (TPI) is mandatory for all vehicle owners.

The cost of car insurance policies 
As with any insurance policy, an amount in form of insurance premium is required to be paid by the policy-holder to the insurance company at regular intervals in accordance with the policy terms and conditions. In case of car insurance, the amount is dependent on several factors dependent on the car –
1. The age of the car – How old is the car? When was it was registered?

2. Car usage - How much distance has the car travelled?

3. State of car registration – In which state was the car registered?

4. Extents of the insurance policy – What kind of damage will the insurance cover?

5. Driving history – Was the car involved in any instances of rash driving? Has the car suffered any accidental damage?

6. The Type of car – Is it a branded luxury car (the insurance is based on the value of the car)?
Minimizing the insurance policy cost
There a number of different ways through which one can acquire a more budget-friendly insurance cost benefit. Here are some of those options –

A. Compare different insurance policy quotes 
The insurance buy can get detailed information related to the insurance pricing quotes, the benefits, and the extent of the coverage. Whether it is buying a car insurance online or offline buyers are recommended to go through them and compare them before making the purchase.

B. Having a reduced frequency of insurance policy claims
Provided that the insurance buyer has a lesser occurrence of making claims of the insurance policy, he or she will receive a pricing discount in accordance with the history of claims. This applies to all types of insurance policies, from motor insurance to health insurance, regardless of whether it was procured online or offline.

C. Buying multiple insurance policies from the same company
When opting for multiple insurance policies from the same insurance company, a discount is given to the buyer. From instance, the buyer may opt for car insurance and a health coverage insurance policy at the same time. This will ensure that he or she receives an insurance discount from the company. 

5 Things to Know before Buying a Car Insurance Policy

It is important for every car owner to understand the significance of car insurance. Car insurance serves the very important purpose of protecting a car owner from any type of financial loss resulting from damage or theft of car. As the chances of a road accident and theft cannot be ruled out, it is important to choose a car insurance policy that provides adequate financial protection.

When it comes to buying a car insurance policy, there are plenty of options available to the car owners. However, there are many things related to car insurance that people are unaware out. Here are some of the terms that everyone should know before buying a car insurance policy-

Zero Depreciation Cover

Due to wear and tear, the value of a car depreciates overtime. While settling the claim, an insurance company will consider the current value of a car. However, if a car owner opts for zero depreciation cover, he can get full claim without deduction for depreciation. Although the premium for a zero depreciation cover is higher, it is usually made up when a policy owner raises a claim after the accident.

Limit of Liability Cover 

Before buying a policy, it is important to look at the limit of liability cover. It must be ensured that the limit is high enough to cover all accident-related expenses. Buying a policy with low limit of liability insurance means that car owner may have to pay some amount of repair expenses himself.

Deductibles 

A deductible is the amount of money that the policy owner will have to pay out of his own pocket. It is important to carefully choose the deductible limit. Generally, car insurance policies with low premiums have high deductibles. Although, the car owner may be able to save money with low premiums, but in the event of an accident, he may end up paying a significant amount of money himself.

Cashless Car Insurance

Opting for a cashless car insurance policy will save a car owner from a number of hassles. In other types of policies, the car insurance amount has to be paid by the car owner and the insurance company later reimburses the amount. But in cashless car insurance, the car owner doesn’t have to pay any cash for car repairs.

Avail the Discounts

In today’s highly competitive insurance industry, car insurance companies are willing to go that extra mile to retain their customers. For this reason, they offer a wide range of discounts. Installing safety features in the car and adding an additional driver with a clean record are two highly effective ways to earn car insurance discounts.

These days, a car insurance policy can be easily purchased online. Most of the major car insurance companies allow their customers to purchase and renew car insurance online. This not just offers convenience but can save a lot of time and effort. Moreover, the car owners can easily compare quotes to choose the right car insurance policy.