Preventing Financial Leakage In Your Car Insurance

Estimated read time 3 min read

It’s not always the first thing that comes to mind when someone struggles to strike a work-life balance, especially regarding their car insurance policy. However, it would help if you acted quickly because a poor policy is similar to a tap that leaks money.

First-time car buyers typically follow the recommendations made by the dealership when it comes to car insurance. However, you can search online for reasonably priced policies while maintaining quality. Discover the ideal car insurance plan to prevent money leaks.

Quantity Purchased: Buying comprehensive car insurance is a brilliant idea if you want comprehensive coverage, but you should also inquire about optional add-on coverage. Although they strengthen and add a personal touch to your policy, hoarding add-ons isn’t a good idea.

Add-on coverage raises insurance costs, so one must exercise common sense. For instance, if you drive alone, pursuing a passenger cover will not be beneficial.

Insured Declared Value: The value you declare when you buy an insurance policy is known as the insured said value, or IDV, as it is commonly called. Unless the claim is for total loss, it has no direct bearing on the claim amount. It does, however, affect the cost of your insurance.

Many choose a higher IDV because they mistake it for the car’s resale value. However, this is untrue. It can be loosely described as your car’s current market value. Paying an excessively high premium is the result of declaring a higher IDV. Selecting a lower IDV entails needing more insurance. Therefore, you should declare the correct IDV.

Please don’t hesitate to ask an insurance company executive for advice if you have any questions. Learn more about IDV.

Concessions: One factor that significantly lowers the cost of car insurance is the No Claim Bonus. It is a savings provided to the policyholder by the insurance provider in exchange for not filing a claim throughout the policy. You must often select a radio button during the policy renewal process to indicate that you have not filed a claim. ## *

A few insurance providers will also give you a concession if your vehicle has anti-theft devices installed, you belong to the Automobile Association of India, or your insurance covers a vintage car. You can use a car insurance premium calculator to check on the price of premiums to be paid.

Timely Renewal: Make sure you extend the coverage before its expiration date. In India, having insurance is required by law. You will forfeit any accumulated NCB, violate the law, and increase your risk of financial loss in the event of an unlucky incident if you put off renewing your car insurance. *

Safeguarding your finances by preventing unnecessary leakage in your car insurance is a proactive and prudent approach. By carefully assessing your coverage needs, avoiding common pitfalls, and staying informed about policy details, you can ensure that your insurance serves its purpose without draining your resources. Regular reviews, smart decisions during policy renewal, and a vigilant attitude towards potential financial leaks contribute significantly to a more cost-effective and beneficial car insurance experience. 

* Standard T&C Apply

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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