How To Get Best Deal On Car Insurance
India with its ever-increasing population has also witnessed a drastic increase in the number of registered vehicle users. Here is the thing about road accidents – even if you are a safe driver and are extremely careful, there are still chances that you could get involved in an accident. Also, car insurance is not just bought due to safety and security reasons, as per the law it is mandatory to have one.
Motor Vehicles Act 1988 states that it is always mandatory for all vehicles to have insurance. In the recently enacted amendment – Motor Vehicles Act 2019 – the need for having an insurance is emphasized and the fine levied in the absence of the same has been increased.
Car insurance is commonly regarded as a ‘grudge’ purchase because you can’t drive without one (since it is legally forbidden) and it is no small financial commitment. Nevertheless, it is recommended to not only focus on the insurance premium while buying a car insurance policy but on other factors like customer service, their network of garages and the add-on covers that are offered. You should also remember that you don’t necessarily have to accept the first quote you receive from the insurer, there are a number of legal tactics that you can apply in order to cut your costs. Mentioned below are a few ways on how to get the best deal on car insurance.
1. Shop around
Do not assume any one company is offering the cheapest insurance policy. A lot of companies send a lot in marketing and commercials to make people believe so, but it doesn’t always hold true. No single company can be a low-price leader for all. While one policy must be cheaper for a person in one state, it might be very expensive for someone who is in a different state. The only way to make sure that you are getting the lowest possible rate is to shop around. Getting and comparing quotes online can help you save big time.
2. Know what you are comparing
Before getting into the market and shopping around and getting your quotes – do your homework. We cannot stress on how important this is. Understand the various parameters and why one policy is better than the other. You need to compare much more than just the cost of the premium – you need to know the Claim Settlement Ratio of the insurance company in the past few years, the turnaround time the insurance company takes settle a claim are few of the many important things that you must know about before jumping in to make a decision. This information should be readily available on the internet or on the insurance company’s website itself.
3. Pick the right job title
A lot of factors determine the cost of cover that you pay and what you do for a living makes a lot of difference. If, at all, you have different labels attached to what you are doing, you can view the difference it makes to your insurance policy. It is, however, very important, to note that whatever information you provide must be accurate and hold true. Lying about what you do or not providing an accurate description of your job might be classified as fraud.
4. Maintain a Safe Driving Record
Mindful driving can cut costs. This should go without saying but be a safe driver. The greater the number of accidents or moving violations, the greater the cost of your car insurance cover. Depending on your safe driving record, you may be offered a discount of anywhere between 10% to 23% on your car insurance cover.
5. Pay your bills on time
Your credit score also plays a role in determining the cost that you’d pay for your insurance cover. Insurance companies believe that the customer’s credit scores are collected to correlate with their probability of filing claims. Studies have revealed that having a low credit score can increase the cost of the cover tremendously.
6. Ask for discounts
You can access discounts by bundling car insurance with other insurance policies, insuring multiple cars through one policy, or agreeing to receive documents online.
Owning and maintaining a car insurance is a necessary, although costly, affair. That’s why it becomes very important that you do your research properly and make an informed decision. At Suraksha Insurance, we can help you with the research and purchase of policy. Connect with us to know more.
