Did I purchase the best car insurance deal? Is my car insurance policy really worth it according to my needs? Well, these are some of the most obvious questions that come into the mind of a car insurance buyer. According to a recent survey report, almost 80% of Indians fail to grab the best deal for their car insurance. Well, which clearly shows that the majority of policyholders are not owning the right policy. The reason being, maybe they have not cracked the best car insurance deal.
Top 7 Secrets That Will Help You in Grabbing the Best Car Insurance Deal -
1. Understand Your Needs and Type of Coverage: It is important to analyse your needs and budget, and then decide which type of coverage would be apt to buy. Are you a new car owner? Is your car more than 5 years old? Are you a frequent driver? How many kilometers do you drive? Depending upon your specific needs, you should choose the right policy be it- the third party, comprehensive or pay as you drive.
Based on the type of policy you choose, you will get the coverage accordingly. Don’t be skeptical about choosing a policy after all you are paying for it from your pocket. And, a wrong policy will not meet your purpose. So, knowing your needs would be really helpful in selecting an ideal policy type that would provide you enough coverage so that you can enjoy the best out of your car insurance.
2. Choose the Best Insurance Company: Selecting the best insurance company goes more than halfway in enjoying the best car insurance deal. The company that you choose should provide you with the type of policy you are looking for. It is advisable to compare numerous insurance providers on various parameters such as Incurred Claim Ratio, Customer Service, Claiming Procedure, history(years), and so on. With the help of comparing, it would be easy to pick an ideal car insurance company, whom you can trust for the long run.
3. Do Not Get Attracted Towards Cheap Premium: We all get attracted towards cheap offers, isn’t it? But is it a good practice to follow? Usually, many people misunderstand the concept of buying the best car insurance deal. For them, best means cheap. However, that is usually not the case when it comes to buying car insurance.
Instead of falling prey to cheap premium offers, try looking into the coverage. Are you getting enough by paying less premium? If not, don’t hesitate to go for a higher premium in order to get better coverage for your car. The cheap premium usually comes with limited coverage benefits which are not enough to insured your car. As a result, policyholders end up paying more either by opting for another policy or paying extra in the form of add-ons.
Thus, to avoid such scenarios, take your decision wisely by not getting impressed at the lower premium. Instead, look for the coverage that you are getting out of it.
4. Be Careful with Voluntary Deductibles: Now that we have talked about premiums, how can voluntary deductibles be left alone? After all, these are also paid by the policyholder(if opted) from his pocket during a claim. Now how much of the portion of the deductible you decide to pay from your wallet actually determines the total claim amount you would receive from your insurance company.
So, suppose, if a policyholder opts for a higher voluntary deductible to pay at the time of claim, his premium would be reduced which leads to a lesser claim amount. Whereas, a lower deductible makes you pay a higher premium with an increased claim amount. Thus, a policyholder can decide himself, which is more important, i.e. lower premium or higher claim amount?
5. Choose Add-ons as Per Needs: There is no doubt on the fact that add-ons add value to your car. They make your policy complete by offering wider coverage and benefits. Add-on covers are necessary as they help in saving the damage/repair cost of your car which you would pay from your pocket(if not opted for any).
But is it really required to opt for all add-on covers? Certainly Not! Yes, not all add-on covers are needed to enjoy a car insurance journey. Go for those add-on covers which are necessary to meet your needs.
For example - If a couple rides together daily to reach their offices, going for a Passenger Cover would be wise. The Passenger Cover gives financial protection to the passenger as well in case of any mishap.
Similarly, if you have a new car/ luxury car or are someone who is an inexperienced driver or lives in an accident-prone area, going for Zero Depreciation cover would be advisable. Also, Engine/Gearbox Protection Cover would be helpful if you live in coastal cities which experience heavy rainfalls such as Mumbai, Pune, Kerala, etc.
Thus, evaluate your specific needs and opt for suitable add-ons.
6. Check/Negotiate for Discounts: We all like discounts! And, what if we tell you that your car insurance also gives you an opportunity to enjoy the best discounts. That’s Right! If you want to make the most out of your car insurance deal, pay attention to discounts that come along with NCB, installation of Anti-theft Devices, and Voluntary Deductibles. Do not hesitate to ask for discounts from your insurance provider related to any of these.
Under NCB, you are eligible to get a maximum discount of up to 50% on the Own Damage premium of the total NCB accumulated, if you have not availed of any claim for 5 consecutive years. Whereas, if you have installed anti-theft devices in your car, your insurance provider would give discounts in premium. And, in case of paying a higher voluntary deductible during the car insurance claim process, the policyholder can get discounts on his car insurance premium.
7. Buying Car Insurance Online: Buying car insurance online is beneficial as you can compare various insurance providers under one roof hence select the best one, offering a great deal. Moreover, online comparison not only allows you to save money by eliminating the cost(commission) of an agent but also saves time and effort to physically reach out to an insurance provider. Thus, an online medium is definitely the best way to seal the best car insurance deal.
Let’s understand this with the help of an example: Mr. Rakesh Verma who lives in New Delhi has purchased car insurance for his brand new Maruti Suzuki Ciaz offline from an agent. A few days later, his neighbour Mr. Aman Jain also purchased the same car, i.e. Maruti Suzuki Ciaz. Moreover, Aman has also availed online car insurance for his new car. The only difference here is that Rakesh is paying more premium whereas Aman has grabbed the best deal online hence is paying less premium for the same make, model, and coverage.
Summary
With the help of the secrets mentioned above, you can enjoy the best car insurance deal. Do not fall prey to cheap premium offers, buy add-ons as per your needs, keep an eye on deductibles, and asking for discounts are some of the secrets that you should always keep in mind. The majority of the car insurance buyers make these mistakes/do not pay attention to the points above hence end up cracking a deal that is not worthy. Hope, the secrets mentioned in the article will turn out your car insurance into the best deal ever.
