For every car owner, motor insurance is definitely a big headache. But if treaded carefully, you can not only save, but also get added benefits for the same price. Here’re tips that you can refer to while you renew your car insurance.
Compare different policies before buying car insurance
Read the fine prints of car insurance Policy
Read each detail carefully and understand their implications to avoid hassles in the future.
Know what your car insurance Policy
Calculate Your Vehicle’s Value before buying car insurance
We have all hated mathematics. But a little mathematics can save us from shelling out large premiums. It is extremely important that you calculate your car’s market value before you renew your insurance.
Once the depreciated value of the car is known, you can negotiate with your insurance agent over the premium amount, and save quite a lot. Consider this, if the market value of your car at the time of purchase was Rs 4 lakh and after three years, its value is Rs 2 lakh then your car’s value has depreciated by 50%.
Hence, while renewing your car’s insurance, you should take a policy on the depreciated value Rs 2 lakh instead of the original market value Rs 4 lakh.
No Claim Bonus
Claim Higher Deductibles
Get additional damage cover in your car insurance Policy
Go for a zero depreciation add on cover with base policy
It is advisable to go for a zero depreciation add on cover. Here, the depreciation amount is paid by the insurance company, as against the buyer in a standard car insurance policy.
Add-on covers also include key-replacement cover, where you would be reimbursed even for the cost of replacing a lost car key. Do check with your agents about such add on covers.
For highly expensive cars, one should go for Zero Depreciation as well as engine protection add on covers.
In some of the expensive car models, there is a high risk of engine damage because of flooding or waterlogging, because of the low ground clearance of the cars
Do not nullify car insurance while customising your car
If you are customising your car, make sure that the changes made to the car do not nullify the insurance. Minimum cosmetic changes should be fine.
However, modification of engine or mechanical setup usually do not come under the standard cover. Also, there is a limit to the value of customisation that can be insured under any policy. Do check with the agent on any such limits before giving your car that facelift.
Go for the best cover that fits your requirements