Shrink Car Insurance Bill

However, there have been various other requirements that have been taken into consideration so that the insured gets to pay lower premiums and avail maximum benefits in case of an accident.



1. Provide correct information: By providing your insurer the
correct information, you can reduce your premiums by
10-30 per cent.
2. Model and make of your car: The decision regarding how
much premium needs to be charged depends upon the make
and model of your car. If your car's make/model is more
prone to accidents, as in the books of the insurer, you are
likely to be entitled to higher discounts than those make/
models of cars which are less prone to accidents.
3. Gender and profession of the driver: The practice of dividing
premium considerations on the basis of gender is
commonly followed in the West, which is yet to catch up in
India. However, some insurers consider female drivers
better than male drivers, making the female drivers entitled
to higher discounts than their counterparts. The driver's
profession too affects the insurance premium. If an office
goer uses a car, it is obvious he uses it to commute
between his home and office, rather than a sales person,
who will use to commute in various cities on a wider basis.
4. Locality where the vehicle will be driven: Apart from the
locality, the place where the vehicle is piled or registered is
taken into consideration these days. Insurance companies
calculate the claims depending upon the location. In
congested cities, where bumper to bumper traffic is
observed, claims for scratches and dents are more,
whereas location highways carry a huge claim amount
because they are prone to major accidents.
5. No claim bonus: No claim bonus is a discount allowed as a
percentage on the 'own damage premium' and the same is
increased every year to the next slab if a claim for damage
to the vehicle is not preferred and it is discounted if there
was no claim preferred during the currency of the expiring
policy. The discount may go up to 50% and it is up to the
insured to decide if he wants to transfer the same on
another vehicle. If the customer sells his old vehicle, he can
also be kept in abeyance and utilize it on a car bought at a
later date.
6. Voluntary deductibles: A voluntary deductible discount is
offered and the discounts can go up to 35% of the premium
for vehicle damage, an option that can be considered by a
customer if he wants to opt out of small claims for minor
damages and the insurance company will pay a claim only
for the damages in excess of this limit of voluntary
deductible. Your premium can be way reduced by this
move.
7. Safety features: In order to attract 2-5% discount on your
premiums, it is necessary to install anti-theft or other
safety features from an approved make by your insurer.
Therefore, you should provide full and exact details about
your vehicle along with safety measures adopted by you in
order to avail discounts.
8. Automobile association member: If you are a member of
any designated automobile association, then you can avail
discounts on own damage premium, which is applicable for
private car and motorized two-wheeler policies. A discount
of 5% is given on the own damage premium.
9. Concession on your vehicle: If your vehicle was lying in the
garage or was not in use for a minimum period of two
months then upon notifying your insurance company the
customer can avail a concession during renewal of the
policy either by way of extending the period after expiry or a
credit to the renewal premium.
10. Online purchase: When you buy or renew a private car
insurance online, some insurers offer a higher discount. The
insurance company has a considerable saving on
processing and distribution costs when the transaction is
carried out online.
Since these parameters are constantly changing, it always
advisable for car owners to get in touch with their insurance
company for the latest benefits available.
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