Beware of These Factors That Increase Your Car Insurance Premiums

Car insurance is a regulator norm for all car owners. While some may choose to go with the most basic third-party coverage, it isn’t always the best option to keep your premium in check. At times, a comprehensive policy can benefit you more than a third-party cover. Now that you can buy car insurance online, it has become even more convenient to get an affordable yet adequate car insurance cover.

If you do not pay attention at the right things, your car insurance policy can start to bleed. To avoid bleeding of your car insurance plan, here are some pointer that need to be attended. Let’s have a look –

Buying a plan without comparison

The most rookie mistake to avoid is buying a policy without comparing it. Comparison is necessary to evaluate a competitor’s offerings. The coverage, exclusions of those policies and lastly, its price must be a determining factor when shortlisting a car insurance plan. While conventionally you can visit multiple websites of insurance companies to compare, nifty tools like a car insurance calculator make the job easy by readily computing premiums. Investing your time at the beginning before purchase can help you enjoy the benefits of your car insurance when needed the most.

Loading up unnecessary add-ons

Comprehensive car insurance plans have the option to be loaded with add-on covers. While these add-ons are not a part of the standard compressive coverage, they are available as extras. It is critical to determine whether you need the additional coverage offered by your insurer. Most buyers often purchase quite a few add-ons that have no real advantage for them but only end-up increasing the premium costs. Avoiding such unnecessary add-ons can help you keep your premiums in check.

Selecting a policy that’s not fit for you

Car insurance in India is often purchased on recommendation of either car dealer or peers. While at times it may be right, not always it can give you the best coverage. Little thought is given to the idea of actually evaluating your requirements based on the driving conditions and habits. When you buy a car insurance plan, you have two options – a comprehensive cover or a liability only plan. The selection of the type of policy should be based only after you compare car insurance benefits offered under each type.

Opting for higher IDV

IDV or Insured Declared Value is the maximum amount that the insurance company pays in case of total loss or complete damage to your car. A comprehensive policy allows you to increase or decrease the IDV within a specified range. But a direct impact of these changes are noticed on your premium. When making modification to the IDV, remember this point to have an affordable insurance premium.

The above-mentioned elements can help you have a policy premium within your budget. Beware of these factors as they often lead into a higher priced policy with no real benefits to them.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.