Consider these 9 things before investing in mutual funds!

India ranks no.1 in road accidents with a total of 4,80,652 road accidents across India leading to 1,51,113 deaths in 2019. On an average of 414 a day or 17 an hour, accidents have taken place according to a report by the transport research wing of the ministry of road transport and highways. Hence, it’s a good thing that every car buyer is forced to insure their vehicles as the government has made it mandatory to buy car insurance. Otherwise, there would have been hardly any who happily spend their money on insurance.

There are around 27 insurance companies in India that offer motor insurance. And the list of motor insurance policies available in the market is even longer. And, it becomes difficult to pick the best option for your vehicle as you have done thorough research by comparing the different features and benefits offered under each motor insurance policy to find the best coverage available at the best reasonable prices.

Here are few tips which can help to reduce your car insurance premium even when they are getting increasingly expensive.:

1. Compare the Insurance: Before you buy a new or used car, check the insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft.

2. Increase your deductibles: Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. Decide how much you can afford to spend out of pocket; then, adjust your deductible accordingly.

3. Avoid small claim amounts: You are entitled to a no-claim bonus (NCB) for every claim-free year. Even for the smallest claim you make, you lose this distinct advantage which can lower your car insurance premium up to a maximum of 50%.

4. Transfer NCB from old to new car: The accumulated NCB can be transferred to the new car purchased because auto insurance is linked to the person who buys it, not to the car. An advantage of not making a claim is that the bonus accumulated is transferable to the new car you purchase.

5.  Install anti-theft device & safety features: Installing safety features/anti-theft devices like locks for the steering wheel and gear, airbags, anti-theft alarms, etc. could fetch you a discount on your premium. Further, people linked with associations like AAI or the WIAA can get special discounts on premiums.

6. Declare your correct IDV: Insured Declared Value is the declared value of your car set by the insurance company. IDV is calculated by applying depreciation over the original market price.  If you value your IDV correctly, you might just be eligible to get a reduced premium.

7. Long-term cover for new car: For your new car, a long-term policy of three years is entitled to an OD discount. The long-term policy is also eligible for discounted third-party premiums as decided by IRDAI.

8. Avoid additional fittings coverage: Your car insurance premium is generally computed at basic level coverage based on vehicle value, vehicle age, fuel type, etc. Any additional fitting which doesn’t come as factory fitted extracts a higher premium.