What do you do to save money on your purchases? You search for the best deal, bargain, use the online medium and keep an eye out for offers and discounts, don’t you? What about your car insurance premium? Do you buy and renew your car insurance policy blindly or do you search for affordable car insurance quotes?
A car insurance policy is a mandatory cover. As such, the associated premium outgoes are inevitable. However, there are secret ways to enjoy affordable premium rates for your car insurance policy. Want to unwind these secrets? Read on –
- Choose the correct IDV
The Insured Declared Value (IDV) of your car insurance policy is the current market value of your car.. In case of theft or total loss of your car, the IDV is payable. IDV is one of the factors to determine the IDV of your car. . Higher the IDV, higher would be the premium charged. IDV represents the current market value of your car after deducting the relevant depreciation based on the car’s age.
When choosing IDV you should be careful. Choosing a higher IDV would result in a higher premium outgo. On the other hand, choosing a very low IDV would erode the value of your car. When your car gets stolen or damaged beyond repairs, you would get a very low amount if the IDV is very low. So, choose an optimal IDV by taking into consideration the current value of your car after depreciation.
You might save on your premium if you declare a lower IDV. But, during a mishap, you would have to compensate on a lower IDV too. Never declare incorrect IDV. Get an IDV closer to the current market rate.
- Don’t buy add-ons blindly
Add-ons or a rider in your car insurance policy to increase the scope of coverage of the plan. Some popular riders include:
- Zero Depreciation cover
- Engine protector add-on
- Roadside assistance add-on
- NCB protector add-on
- Personal accident add-on, etc.
Though riders give additional benefits, they also entail additional premiums. When choosing add-ons you should opt for the ones, which suit your requirement. Don’t overbuy. For instance, if your car is more than 3 or 4 years old, then buying a zero depreciation add-on does not make sense as it increases the premium substantially. Similarly, if you do not take your vehicle out on long drives or short trips, a roadside assistance add-on is useless for you. So, be careful when choosing riders and buy only those, which are required.
- Save your No claim bonus
You get a No Claim Bonus (NCB) when you do not make claims in any policy year. This bonus entitles you to premium discounts when the policy is renewed. The rate of bonus also increases every consecutive year if you do not make any claim. So, when you renew your car insurance plan, don’t forget to avail a NCB discount if you have not made any claim in the policy year.
- Look for premium discounts
Insurance companies allow various types of discounts in your premium. These discounts can lower your car insurance premiums. Some common discounts available are as follows:
- You get a premium discount if you are a member of Automobiles Association of India or Western India Automobile Association.
- Premium discounts are also allowed for installing safety measures in your car like anti-theft devices, ABS systems, etc.
- Choosing a voluntary deductible limit also entitles you to a discount. Voluntary deductible represents the amount, which you undertake to pay in case of a claim.
These discounts help in lowering your premium rate.
- Buy online
The last secret to finding the most affordable car insurance premium quotes includes using the online marketplace for finding and buying a car insurance policy. The online marketplace lets you compare the different available plans with their IDVs and premium rates. You can see the available riders, any premium discounts and all the coverage features of the plan. After comparing the available plans, you can buy the best plan with the most affordable premium rate.
- Renew policy on time
Your car insurance policy comes as a one-year plan, which needs annual renewals. When you renew your car insurance policy on time, you can get the best and affordable premium quotes. If, however, you do not renew the policy which subsequently lapses, you might be charged a higher premium to renew your expired cover. So, be wise and renew your car insurance policy on time.
Coverfox offers you the online facility of comparing and buying car insurance plans. You can visit our website and find all available car insurance plans. From the listed plans, you can compare and choose the most affordable plan for yourself.
Getting an affordable car insurance quote is no mystery if you know how. The above-mentioned points unveil the secrets of buying an affordable car insurance policy. So, know these points and find the best car insurance policy and that too, without burning your pockets in the process.