Rising Car insurance premiums: Here’s what you can do about it

At a time when cars are becoming expensive and car insurance too becoming costlier than before due to some recent alterations to the law, car insurance costs more now.

When you buy a car, the convenience comes for a price. Besides maintenance, you also pay for the vehicle’s insurance, which has two components: ‘third party’ and ‘own damage’ or what is also known as ‘comprehensive’ insurance. While the former covers any damage or injury incurred by a third party in case of an accident, the latter insures the damage suffered by your car.

Here are some tips to save money while buying Car Insurance policy:

Opt for right type of cover: You need to decide whether you want a third party or a comprehensive cover. Car insurance has other components, apart from the personal accident add-on. You, therefore, need to access the scope of coverage you want, as your overall cost will depend on that.

Adjust the add-on covers: These are extremely helpful, but they increase your car insurance price. So see which add-ons are essential and drop the ones you can do without. This will help you to manage the car insurance expenses more efficiently.

No-claim bonus:  Since your vehicle’s expenses increase every year, including third-party insurance premium you can take advantage of the no-claim bonus feature to reduce the comprehensive insurance premium. For every no-claim year, your insurer will give you a no-claim bonus and you get a discount when you renew your policy.

Check for discounts: You can get discounts when you buy a motor insurance policy. For example, discounts are available for members of automobile associations. You also get the plan at a discounted rate when you install some safety gadgets in your vehicle. Look for all the discounts that you may be eligible for and try to reduce your motor insurance liabilities.

Compare: You need to run online comparisons between the available car policies before you buy a cover. This will help you to find the best plan at the best rate. Unless you compare, it would be difficult for you to find the good deals. So never make the mistake of buying a car plan without running a comparison first, especially now when the costs are soaring.

Pay as you drive:  In ‘pay as you drive insurance’ a premium is charged based on the usage of the car. Currently, it is being offered on a pilot basis. This is offered by a few insurance companies in some cities. The policy aims to fix the anomalies in charging the same premium without considering the usage of the car

To get a quick car insurance quote download ICICI Lombard’s IL TakeCare app.