Keeping Auto Insurance Premiums In Check

author image Wednesday 09 July 2014, 10:00 AM Car-Finance

The necessity of auto insurance in India is to a great extent as the same has become mandatory by the government. Vehicle insurance is somewhat a health and safety benefit provided to several car owners so as to cover their expenses during any unexpected occurrence. The criteria of availing this insurance scheme are that people have to pay certain amount of premium from their pockets so as to be eligible for the same. This vehicle insurance premium is calculated on the basis of the Insurer Declared Value (IDV) of the specific model. This IDV is determined on the fact that how much depreciation will a car undergo in its coming years. Other factors affecting the car insurance premium are the additional features in the vehicle, it’s inside space, range covered annually and total expense on mending the car in past.

Car insurance premium
Car insurance premium

Several concerned buyers complain that although there policy is flexible, still they have face with hefty auto insurance premiums. There are numerous ways through which a person can minimise the same and increase his/her expenses. To save on auto insurance premiums, one can take care of the following guidelines:

  1. The first and foremost technique to save on auto insurance premiums is to look for the most suitable insurer and policy. People can go through a number of portals and make a list of the firms offering insurance with different rates and schemes. People should always make a decision only after finalising all priority work.

  1. It is also recommended by experts that the car should not be given to the insurer in each case of an accident. First, a person should determine the degree of the loss and if the expenses can be paid through one's pocket then the same should be done. By sending the car each time to an insurer, people might not be able to avail the benefit of No-Claim Bonus (NCB), which helps to greatly reduce the car insurance premium.

  2. To save on vehicle insurance premium, the policies should be availed from the corporate firms and not the authorised dealers. All the dealers have tie-ups with the auto maker and may charge extra for certain services. It has been found that the big corporations in the insurance industry are more reliable and partial towards the vehicle owner.

  3. Driving the car safely and sensibly might also save on auto insurance premium during the longer run. This is due to the fact that the more a car gets ruined, the higher is the depreciation and therefore, higher amount of insuring it. Problems persisting in the engine or other mechanical parts should be kept to a minimum so as to be certain of paying lesser car insurance premium.

  1. Lastly, one should always try to buy cars in their budget so as to be certain of lower vehicle insurance premium. Increasing the deduction may lead to a proper budget slab for an individual that will ultimately increase his/her savings.

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