Tips to Reduce Your Motor Insurance Premium: Welfin | Best Motor Insurance Agency In Kolkata

We endeavor to save every penny we can every day, given the ever-increasing inflation. One way to save money is to purchase the greatest vehicle insurance coverage. A car might be expensive to own if it suffers major damage due to an unforeseen catastrophe. In such cases, automobile premium insurance comes in handy. Having insurance protects you not only from having to pay a huge sum to cover damages in the event of an accident, but it also saves you money. Let’s start with the fundamentals before going on to the Tips to Reduce Your Motor Insurance.

What is motor insurance, exactly?

Motor insurance covers the policyholder if the insured vehicle suffers financial losses as a result of an accident or other damage. A comprehensive car insurance policy covers third-party property damage as well as personal losses.

Do I need vehicle insurance?

It most definitely is. According to Section 146 of the Motor Vehicles Act, 1988, you must have motor insurance before operating your car on the road. If you don’t want to buy a full insurance policy, third-party coverage is the bare least you’ll need to get your vehicle up and running.

What does the policy cover?

A standard car insurance policy will protect you from the following:

Earthquakes, floods, fires, lightning, landslides, hurricanes, and other natural catastrophes cause property damage and losses.

Human-caused damage, such as burglary, theft, rioting, strikes, or any other malicious behavior.

Third-party legal duties stemming from third-party property damage (including bodily harm and death) and financial losses.

How much is covered?

Typically, vehicles are insured for a specified Insured Declared Value (IDV). In other words, IDV indicates your vehicle’s current market value. The IDV of a new car is higher, and it depreciates with time.

Factors affecting motor insurance premiums

Understanding the following factors that influence auto insurance premiums will assist you in making an informed decision:

Type of coverage

A comprehensive insurance policy that covers both the insured vehicle and a third party would have higher premiums than its third-party counterpart.

Situational context

Where you live is one of the most important factors in determining your vehicle insurance premiums in India. The chance of vandalism and accidents is higher in larger Tier 2 and Tier 3 cities than in smaller Tier 2 and Tier 3 cities. As a result, insurance providers will hike your auto insurance premiums.

Installed safety features

If your vehicle has anti-theft equipment, airbags, a GPS tracking system, an alarm, or anti-lock brakes, insurers will consider your efforts to safeguard your vehicle and charge you a discounted (read: low) cost.

Tips to Reduce Your Motor Insurance

Here are a few simple Tips to Reduce Your Motor Insurance:

Invest in the Right Security Hardware

To begin with, prevention is always preferable to cure, therefore you should invest in robust security equipment such as steering wheel locks, security alarms, and other similar devices to lessen the risk of your car being stolen. Installing authorized anti-theft devices can help you save money on your insurance because they increase vehicle security and reduce potential hazards in the eyes of the insurer.

Avoid unnecessarily changing vehicles.

Any modification, alteration, or addition to your vehicle will drastically increase your insurance costs. This is because some alterations could increase the risk of accidents or theft. The cost increase would be solely determined by the gains made. Any changes to the vehicle should also be notified to the insurance to avoid a claim denial.

Choose the Most Appropriate IDV

The insured declared value, or IDV, is your car’s estimated current market value and the most your insurance will pay in the event of a claim.

The IDV is influenced by several factors, including the car’s model or manufacturer, availability, current condition, and type. Setting the right IDV is critical because it has an impact on your overall premium. A greater IDV raises the premium unnecessarily, whereas a low value decreases the price (but gives fewer benefits/features). Furthermore, overestimating this value is pointless because the claim amount is largely determined by the type or circumstances of the loss.

Check to determine if your auto insurance policy hasn’t run out of coverage.

This is important because if you fail to renew your current auto insurance coverage and it lapses, you may be forced to get a new one. If you renew your license plate, you may face a penalty. It’s just as important to renew your car insurance on time as it is to buy it. You will lose some benefits if you postpone or fail to renew your insurance policy. For example, despite having made no claims throughout the preceding policy’s term, you will be denied the benefits of the no-claim bonus when purchasing a new one. You should renew your insurance coverage at least one week before it expires.

Become a member of a card association.

Consider joining a reputable automotive organization before purchasing a new auto insurance policy. The benefit of joining such an organization is that you may be eligible for credits that may be used to reduce your premiums.

Compare insurance plans before making a decision.

Finally, evaluate the features, benefits, coverage, total insured, premiums, and other factors of various providers’ plans. Make a list of benefits and drawbacks based on your requirements. Such comparisons can be made on an insurer’s or an insurance broker’s official websites. Before purchasing any auto insurance policy, do your research to find the best deal possible, just like you would for any other product.

In the end, a penny saved is a penny earned.

We hope these Tips to Reduce Your Motor Insurance, will help you in the future. To know more about motor insurance, contact Welfin, one of the best motor insurance agencies in Kolkata.