Accidents and your Car Insurance Premium – Everything that you should be aware of!
Life is a bundle of uncertainties, and accidents do happen. You might be the best of the drivers, but mishaps can never be predicted. While your Car Insurance policy is your best friend at the time of a car accident, protecting you against accidental repair expenses, it might prove expensive at its renewal. As premiums are directly proportionate to risks, a car accident does adversely affect your risk profile as well as premium costs.
Effect of Accidents on Car Insurance Premium
Premium Loading
When a policyholder has a history of claims, he is flagged as a risky profile and charged extra premium at the time of policy renewal. This additional premium is known as loading. Loading may go up to 10-15% of your last premium, depending upon the type of claim, the amount of settlement, and the declared value of car. However, there can be no premium loading in case you have a third-party insurance.
Losing No Claim Bonus
As the name goes, No Claim Bonus is paid when there are no claims filed throughout the policy period. This bonus, that may go up to 50% of your premium, effectively discounts your premium amount. But when you file a claim, you are no longer eligible for No Claims Bonus and thus have to pay higher premium next year.
Reduced Cover
High risk often results in reduced cover for the policyholder. You may lose your add-ons, not be eligible for a comprehensive cover or may have to do with just third-party liability insurance.
Tips to avoid hikes in Car Insurance Premium
Avoid Claims
Always analyze & calculate the benefits before filing a claim and be sure that it worth losing your No Claim Bonus and being flagged as a risk profile.
No Claim Bonus Protect
A No Claim Bonus Protect, commonly known as NCB Add on, is a perfect way to protect your No Claim Bonus while you raise one or two claims per year, depending on the terms & conditions of the policy.
Anti-theft Device
Installing an anti-theft device certified by Automotive Research Association of India (ARAI) gives an additional security cover to the car and decreases the risk of vandalism & theft. As decreased risk means less premium, your car premium amount goes down. Its best to install such a device right at the beginning of the policy period to make the most of out of your premium.
Increasing Voluntary Deductible
Voluntary deductibles imply that you are willing to pay to share the financial burden in case of damages to the car. This reduces the premium amount but also reduces your claim settlements. But be sure to check the terms & agreements carefully while opting for voluntary deductions.
Well, you may try a few of these tips to ensure lower rates of car insurance premium even after an accident. But in case it doesn’t work out, you can always pick another insurance company at the time of renewal. We, at Suraksha, are here to represent you and not the insurance companies and to ensure that you get the most cost effective & comprehensive coverage for your car. Connect with us at @ insurance@suraksha.seahwk.com to find the best deals & discounts for your car insurance.
