But there are several ways by which you can lower the premium rates offered to your by your insurers.
Earlier, the geographical zone, the engine capacity, the cost, and the age of the vehicle were the four parameters that were taken into consideration for deciding the premium amount that you needed to pay.
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.
- Provide correct information: By providing your insurer the correct information, you can reduce your premiums by 10-30 per cent.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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