Just as you avail a health insurance plan for emergency hospitalization, your car needs a car insurance plan. A Comprehensive car insurance plan covers you for own damage and third party liability.
Want to know more on Car Insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Cost of insurance can be high depending on the type of vehicle you drive. If the vehicle you drive is in high demand, chances of it getting stolen are high.
In other words, more the demand for the vehicle, more the cost of the insurance. Another factor which can increase costs is how often you drive your car. If you drive a lot, premiums are on the higher side as the chances of meeting with accidents are high.
Married people are known to drive carefully compared to singles. So, insurers take your marital status into consideration, before fixing the premiums.
If you have cancelled a policy in the past, your relationship with the insurer is affected. The insurer might hesitate to cover you and charge higher premiums. You must give valid reasons on why you terminated the previous policy and build a rapport with the insurer. Then, you can negotiate for lower rates.
SEE ALSO: Personal Loan For Vacation
The more you spend out of your pocket before your insurance kicks in called the deductible, the lower your premiums will be. Having a low deductible is helpful if you are involved in a collision, as you don’t need to pay a lot for repairs, before your insurance cover kicks in.
However, you’ll be paying much higher premiums as your deductible is low. If you are a safe driver or don’t drive often, you could likely get away with adjusting to a higher deductible and take a measure of risk. This will help save on premium costs.
If the insurer gets to know that you have received a large payout for an accident or a theft, they could raise the premiums, regardless of who was at fault.
You should avoid unnecessary claims and only make claims for severe damages or on theft of the vehicle. If you are involved in an accident in which you are not at fault, you need to mention “no fault” in the documents to avoid a premium hike.
If your driving record is not good, and you are involved in accidents, traffic violations and so on, you tend to pay a higher amount in premiums as the insurer has to bear a higher risk. Insurers consider these type of parties as high risk parties, and charge a higher premium as chances of accidents are high.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.