The Indian Government has made it mandatory for all vehicle owners to buy an insurance policy. You must also invest third-party liability cover compulsorily according to the law. Comprehensive policies are usually an option. However, most of the vehicle owners are confused when it comes to buying the right car insurance. This is because there are many little and plentiful things to consider while buying one.
Following are some facts about car insurance policy new owners should be aware of before selecting one –
Different insurance companies charge different premiums
You and someone else you know may hold the same kind of vehicle; however, the insurance premiums may differ. The difference applies if you bought the car policy from the same company or two different insurance companies. Every consumer and every insurer has different requirements and facilities. Thus, you do thorough research and compare plans before selecting one.
Vehicle’s make and model affect insurance premiums
These two aspects play an essential role in determining the insurance premium amount. The premium gets decided based on the rating system where the make and model also get scored. Most of the insurance companies in India typically do not reveal the rating system. They also factor in the size of the four-wheeler, whether it runs on petrol or diesel, automatic or manual, and other such similar factors for deciding the premium. Many buyers believe that the color of the vehicle affects the premiums, which is false.
Safety devices reduce insurance premiums
If you seek to reduce the four-wheeler insurance premiums, consider installing a security device such as an anti-theft device in the vehicle while getting one home. This device makes your vehicle less susceptible to theft, thus reducing the insurance provider’s liability. It also exhibits responsible maintenance of vehicles on the part of the policy buyer and the insurer rewards such behavior by offering discounts on the premiums.
Avoid filing claims for minor damages
Filing for small or big damages can go against you. While there are no final calls on the number of claims you make in the year, it is best to avoid filing claims for minor damages. Not filing claims allows you to earn high discounts on premiums in the form of no-claim bonus during the car insurance renewal time and the premium amount also reduces, thanks to avoiding unnecessary claims.
Research before buying insurance
When most of us get a new vehicle, they make the mistake of buying a policy suggested by the car dealer, who may not understand your requirements and suggest a basic plan. The same goes for insurance agents who sell an inadequate policy and charge a commission for the same. Instead of these options, do your research, compare, and then buy online car insurance through the portal.