Whether you are buying car insurance or a separate third-party insurance policy, the thought of cheap car insurance is enticing. Buying a cost-effective policy is not a difficult task, when you know the right features to reduce the premium. Hence, one needs to understand the basic features – No Claim Bonus, Insured Declared Value, Deductibles, Voluntary Excess – and by doing so, the scope of saving money on a Motor Insurance policy.
Comparing Car Insurance Online is an effective way to get a cheap car insurance policy. While doing an Auto Insurance comparison, you need to consider the amount you are willing to pay as premium, with respect to the adequate coverage being offered. Depending on your car model, date of manufacturing and engine type, i.e. petrol, diesel or CNG, you need to understand what covers are required for your car. Today, you can obtain quotes online from multiple Insurance companies to compare premiums and features to take a concerted decision on which policy to opt for.
Doing an effective car insurance comparison will not only help you in getting a cheap car insurance policy but will also help you to find a quality plan from the top insurers.
No claim bonus is a feature which is not to be missed for getting a cheap car insurance policy. No claim bonus is a discount, given by an insurer to the insured for making no claim during the policy term. You can generally gain 20 to 50 percent of no claim bonus every year for not making a claim. NCB is offered to customers even if they change their vehicle, as no claim bonus can be transferred to the new vehicle when purchased.
Insured Declared Value or IDV is the market value of your vehicle. If your vehicle is stolen or suffers a total loss ( a loss beyond repair), it is deemed as a ‘complete loss’ of the vehicle. In such a case, the insurer will pay you the sum insured, that is the Insured Declared Value of the vehicle, as calculated by the depreciation formula of IDV.
For a cheap car insurance policy, it is advisable to get Insured Declared Value which is near to the cost of the market value of the car. Insurers provide with a range of 5-10 percent to decrease IDV which could be chosen by the insured. Less IDV attracts less premium. However, in most cases, there are set formulas for this.
A deductible is a value which you are willing to pay in case of an accident or collision. There are two types of deductibles- voluntary and mandatory. A voluntary deductible is an amount one is willing to pay to reduce the insurance premium. A mandatory deductible is a mandatory contribution when a claim arrives. Therefore, you can reduce the insurance premium by increasing the voluntary deductibles.
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Voluntary Excess is a deductible amount which the insured agrees to pay at the time of claiming for the loss or damage. The rest of the amount is paid by the insurer. Opting for higher Voluntary Excess may give you a higher discount on car insurance premium, which is an ideal way to get a cheap car insurance policy.
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