It is not rare to make a wrong choice when purchasing an auto insurance. This is because few people bother to get into the nuances of car insurance and the options offered. What normally happens is that the seller from whom one buys the car has association with an insurance provider and adds the insurance plan to the road price of the car. The owner pays the premium every year when he/she gets notice from the company, which renews the policy. Hence a little research and planning can bring down the insurance amount significantly.
Pune is a city that represents ‘New India’, with its inexplicable blend of materialism, spirituality, tradition and modernism. Apart from being an educational and cultural hub, Pune is also famed for automobile manufacturing and is one of the fastest developing metros in Asia. Though a vast number of boulevards are constructed in central Pune, it is after all a hill station, and hence has many meandering roads. According to National Crime Bureau report (2011), Pune ranks third with regards to the number of accidental deaths. This is a grim situation and makes buying auto insurances even more necessary.There is no escaping car insurance but there are ways to keep the premiums in check
- Ignorance is not bliss when it comes to the Indian Vehicle Insurance Law-
- Be that driver who understands that the road could be full of idiots-
- Higher Deductible Helps-
- Super-attractive add-ons! How necessary are they?
According to our country’s motor vehicle rules, there is a minimum insurance every car owner must buy, which is the Mandatory Limited Liability. A higher cover comes with a higher premium.
This is not just to keep you safe but also to save on premiums. If a year goes without any insurance claims, the company generally ‘rewards’ the driver with a ’No Claim Bonus’ (NCB) which will bring down the premium by around 10 to 25% as per the company policies. For instance, if your yearly premium was INR 8000 in 2014 and there were no claims, the premium for this year could be INR 7200 to INR 6000 with the deducted NCB.
[Deductible is the money paid from your side towards any damage expense.]
Nobody likes to choose a car insurance policy with more deductible than necessary. This could be another incentive to be a safe driver. For instance if you choose to pay 25% of the expense in case of accident/repair, insurance company will bear the rest. But here, an impeccable driving history of at least three years can save you more than what you actually spent on repairs.
Compare the facilities offered by your car dealer and those by insurance providers. Check carefully to see if they overlap. For instance, if the dealer offered you free road-side crisis assistance for, say, first 3 years, there is no need to pay for the same add-on to the insurance company. Similarly if you already have a medical insurance, there is no need to opt for hospital money add-on as well. These minor details can save you loads of extra premium.
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017