Save on car insurance premium expenses through smarter insurance purchases

Insurance is a necessity and one has to make a wel informed decision while buying an insurance policy.

Mumbai, India (prHWY.com) January 8, 2013 - A buyer considers his car as a priceless possession, however just buying the car is not enough. One needs to procure car insurance to ensure compliance with the law and safeguard oneself from certain unforeseen expenses. Automobile insurance is the fundamental requirement once the vehicle is purchased. Insurance is an alternative designed to protect the car owner from unforeseen financial strains and all the risks involved while travelling. Moreover, the Indian Government has made it mandatory that every car on the road should be insured.

Car dealers offer attractive discounts and freebies to draw more attention and increase popularity amongst masses. 'Free insurance' has been gaining immense popularity in the recent years. On the contrary, such insurance policies enumerate hidden clauses which the customer is unaware of. Free insurance provides cover only for a year, as soon as the second year begins, the policyholder has to pay the premium amount otherwise the policy gets exhausted and the car owner will not be able to make car insurance claims.

Usually the car dealers reclaim the price of the premium by offering fewer discounts. Free insurance averts from protecting the car against damages incurred due to floods and so on. It is imperative that the customer peruses through the fine print before signing on the dotted line. Instead of opting for free insurance, customers should buy separate car insurance and opt for higher discounts.

Following are few tips to help save a buck on premium:

Insured declared value - Insured declared value is the actual price of the car. You can lower the premium amount by declaring that the car is of a lower value. However this also has a downside. In case the car gets stolen then the insurance company will reimburse the amount mentioned in the policy which will of course be less.

Opting for higher deductibles - Deductible is the amount payable by the policyholder and the rest is settled by the insurance company. Deductible is of two types, voluntary and compulsory. For example, compulsory deductible of Rs. 700 would mean, you have to pay Rs. 300 of the car insurance claims amount and the rest will be cleared by the insurance company. However if you pay Rs. 700, the premium can be reduced by 30%.

Voluntary additional declarations - the premium calculated varies from car to car and the occupation of the car owner. The car insurance companies tend to compute the premium amount based on factors like age of the car, type of fuel used etc. For instance, it is revealed that diesel driven cars are used more as compared to petrol driven cars, therefore the premium on diesel driven cars will be higher. So declare all the details of the car to lower the premium.

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Tag Words: car insurance claims, car insurance

Categories: Insurance

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