Driving without a valid car insurance policy is illegal in India? The Motor Vehicles Act, 1988 mandates all vehicles to have an insurance cover on them at all times. If you are found driving without a vehicle insurance policy, a punishment awaits you. Car owners who do not already have a policy, it is high time to get one at the earliest.
According to the law, a third-party car insurance policy is what you need at the minimum. When you do set out to buy a policy for your car, there are quite a few things that you need to be aware of. One might not be aware but there are various techniques and methods by which you can secure discounts on your next car insurance policy. Here are some tips to help you get discounts and save some money on your vehicle insurance.
- Membership-based Discounts
When you become a member of certain associations, you can seek additional discounts. Check online, if you want to join Automobile Association of India for their services along with the possibility of a discount on car insurance premium.
- Anti-theft Device Installation
A car insurance policy usually offers coverage against theft and burglary. However, on the installation of security devices, the chances of such occurrences might reduce to a greater extent. By installing anti-theft devices that are approved by the Automotive Research Association of India (ARAI), you can avail discounts from your car insurance provider.
- Deductibles
When you pay your car insurance premiums, there usually is a section for deductibles. And it is split as compulsory and voluntary. By opting for voluntary deductibles, over and above the compulsory deductibles, you can reduce the premiums. However, this will lead to lower claim amount.
- Long-term Policy
Car insurers are offering plans for a longer period of time, for example – three-year car insurance policy. When you opt for such plans, you get to save money right away. Cost of car insurance policies usually increases on a yearly basis. By going for a long-term policy, you protect yourself from any rise in the policy’s price in the subsequent year.
- No Claims Bonus
NCB or no claims bonus is without any doubt one of the most popular discounts that you can avail on your policy renewal. You can consider it as a reward that insurers offer you for driving safely. It comes into the picture if you haven’t claimed your policy in the previous term. The discount starts at a minimum of 20% for the first year and goes all the way up to 50% for the fifth year. You just need to be cognizant of the fact that these discounts are only on the own damage component and for 50% discount, you must complete five consecutive claim-free years.
Based on the claims that policyholders make, it is easy for insurers to identify drivers who are safe or unsafe. If you are someone who drives responsibly and ensures that the roads are safe, you are more likely to see the benefits in the form of lower premiums.
Make an Informed Choice
Whichever insurance cover you choose, make sure to read the inclusions and exclusions of the policy before purchasing the insurance cover. For example, you have the option of choosing Add-on covers along with a Comprehensive car insurance policy. It won’t be much productive if you choose a Passenger cover add-on and drive alone on most occasions. You can easily get your doubts cleared from the insurance company’s executive on call or through email and purchase a policy online.
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