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Bargain hunt can cut car insurance cost

Bargain-hunting before policy expiry can get you a better deal All vehicle insurance policies include a personal accident cover and an additional cover for a co-passenger

RENEWING your car or two-wheeler insurance is not a chore that should be done in a hurry, just a day before the policy expires. A little bit of planning and bargain hunting can help you get a better deal and save costs on vehicle insurance premium.

Compare insurance premiums online:

Like most other insurance policies, purchasing or renewing a vehicle insurance policy online is much cheaper than doing it through other means like a broker or your vehicle dealer.

Portals like easyinsurance.com help you compare vehicle insurance premiums charged by different companies. However, many of these sites also charge a service fee of around Rs 100150 for the facility.

Mention your no-claims bonus: For every year of zero claims, most insurance companies offer a 5 per cent rebate on the basic premium. This means you can claim 5 per cent rebate when your vehicle enters the second year without any claims, 10 per cent in the third year, 15 per cent in the fourth year and so on. Even if you change your insurer, you can claim this bonus on the basic premium or under the 'Own Damage' head.

Exclude unnecessary coverage:

Check for additional coverage offered by the insurance companies. If your car does not have a fancy audio system or gadgets, then you can clearly ask for an exclusion of those covers in the insurance coverage.

All vehicle insurance policies include a personal accident cover and an additional cover for a co-passenger. If you have a two-wheeler and mostly drive it all by yourself, you can ask for the exclusion of personal accident coverage of a co-passenger.

Some insurers like IffcoTokio may have a higher insurance premium but also offer facilities like cashless claims at many cashless garage networks across India. Check how useful these could be for you.


Include the essentials:

If you have a chauffer-driven car, make sure you take an addi tional personal accident cover for the driver. In case of an accident, the owner is legally liable to pay the driver and this is not an option to be excluded when insuring the vehicle.

Also, installation of an anti-theft device will help save 2.5-3 per cent of premium costs. Companies like HDFC Ergo offer a 5 per cent discount on premium for owner/drivers in the 3545 age group and a 10 per cent discount for those between 46-60 years of age.

Should you opt for voluntary deductibles? Many insurance companies provide the option of having voluntary deductibles that help you lower your premium. An insurance claim placed in a year will mean that the user cannot claim a no claims bonus the next year. By opting for voluntary deductibles, the user gives an undertaking that if his claim is up to a certain limit, say Rs 500 for two-wheelers and Rs 5,000 for cars, he can handle it all by himself without going through insurance claims hassles.

Opting for a voluntary deductible lowers premium costs and it is the user's call on whether to take it and how much deductible to opt for, he says.


Renew premiums on time:

Every vehicle plying on the road has to be insured according to the Motor Vehicles Act. Riding your vehicle on the road after the insurance policy expires is not only unlawful but will also become an ordeal when you try to renew the policy later.


A vehicle, whose insurance policy has expired, has to be taken to the insurance company branch and checked by a surveyor, for which there is a cost, adding to the expenses and trouble.
 

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