Since last year, the Insurance Regulatory and Development Authority (Irdai) has introduced new rules and regulations describing the need to buy a car insurance policy. It is now imperative to take out an auto insurance policy with your vehicle. However, the premium may vary. For example, the premium for which you buy the insurance plan today may not be the same the following year. Various factors affect the premium of the policy. As a result, when renewing, most end up paying a higher premium.
Although all insurance companies follow a different process for calculating the auto insurance premium, you can stay away from a few standard items to avoid an increase in the premium.
If you are considering taking out a car insurance policy, here are the 5 things that will help you with a lower premium:
Avoid the lapse of a policy
If you miss the deadline for renewing your policy, insurance companies usually inspect the vehicle. Most of the time, insurance companies charge a higher premium during this inspection. Therefore, avoid losing your policy. Policyholders also completely lose their no-claims bonus if the policy expires for more than 90 days.
Insured declared value (VID)
The declared value of the insured (IDV) and the premium paid by the policyholder are determined at the time of renewal, which depends on the age of the vehicle. Therefore, experts suggest defining the "value of the vehicle" on which the police are bought. The declared value of the insured is calculated on the basis of years of use and depreciation, which is applied to the ex-shop price of vehicles under five years old. For vehicles older than 5 years, their market value is taken as IDV.
No Claim Bonus (NCB)
Insureds get the PNE if they do not make small claims for minor accidents under their policy. Although the NCB varies from one company to another, it can go up to 50% for five years without a disaster. However, if policyholders make a claim, the no-claim bonus is reset, which again leads to paying a higher insurance premium. Therefore, experts suggest driving carefully to avoid paying the higher insurance premium.
In addition to basic coverage, policyholders can opt for relevant add-ons. For example, add-ons such as Engine protect zero amortization which helps the insured to avoid paying a higher premium in the long run. However, additional users also increase the premium when they are added to an ordinary engine cover. Experts suggest that policyholders evaluate and consider their needs while opting for these add-ons.
You can also choose to buy a font online. If policyholders are familiar with the product they are buying or are comfortable with understanding it, they can also purchase the contract online from the insurer's website, with most companies offering competitive prices on their website. own website.