After purchasing the car, the next mandatory step is to buy the car insurance policy. This covers you from any physical damages, as well as financial loss – both man-made and natural disasters including accidents. Under any unforeseen destructive circumstances, it’s always better if you keep a safety cover, in the form of car insurance policy - third party insurance or comprehensive insurance plan. The benefit of third party liability insurance is that, it covers your from damages caused by your vehicle to other vehicle/ person who is not insured. In such cases, it will save you off the extra time and money, and the legal troubles it may impose on you. This is a mandatory clause in your car insurance policy, to cover the policy holder or car driver it, if both are same.
If you wondering what if there is a road accident will it affect the premium? An accident can be challenging for both the injured and the person responsible. Nobody can predict accidents; however, necessary steps can be taken to ensure safety while driving on the road. With car insurance you can get the required assistance, however an accidental claim does affect your car insurance premium.
The premium is increased a bit at the time of renewal when the insurer files an accidental claim. Here we would learn how car insurance premiums are affected in case of an accident during the policy term and the ways you can reduce it:
Accidental claim requests are alarming for insurers, and if you have frequent claim history for accidents then your profile can be considered as a risky profile, and the premium will be increased at the time of next renewal as you would lose your No-claim-bonus after a claim. And people with risky profile increase the probability of filing a claim, which would mean an additional cost for the insurance company. The higher the risk factor, the higher is the premium.
Before the premium amount is decided, it in influenced by a number of below mentioned factors including accidents-
If you wish to reduce your car insurance policy premium then here are certain important suggestions that you can save you from a higher premium:
If you fail to renew your car insurance policy before it getting lapsed, you need to buy it all over again. At the time of policy purchase your car will be inspected again – the insurer might ask you to pay for it. Imagine, your car insurance premium will be calculated all over again and you even need to pay a higher premium. And if it has a history of accidental claims you will lose your No-claim-bonus! It’s just one hassle over another. If you do not want to pay extra premium, renew your policy before it getting lapsed.
Another way of reducing your car insurance premium is to ask for higher deductibles at the time of purchasing the policy. It is the amount that you need to pay from your own pocket at the time of an accidental claim.
It is one of the simplest ways to reduce your car insurance premium. The cost of premium can be reduced by 30 percent with voluntary deductibles.
However, opt for deductibles as per your financial capabilities. Going overboard can put a financial strain on your pocket. At the time of policy renewal, there is also an option to change the number of deductibles.
Anti-theft devices reduce the possibility of your car being stolen. If you install any device that reduces the risk of theft or damage, it will reduce the possibility of you making a claim. And any step that you take towards protecting your car like airbags, antilock brakes, and immobilizers, could convert into a good discount i.e. a smaller premium.
The more, the years without claiming your bonus, higher will be the No-claim-bonus; of course with an upper limit to it. If you are planning to buy a new car and sell your old one, then you can also transfer your No-claim-bonus from the previous policy. You need to give the NCB certificate to the new insurer to transfer your NCB.
For all the years that you have not made any claims, you become eligible for a no-claims-discount or bonus. You will be surprised to know that it can reduce your car insurance premium by 50 percent?
Those who make claims for small damage end up losing their No-claim-bonus.
The thumb rule to keep your premium low is to pay from your own pocket for small repairs. Make sure that the cost of these small repairs does not exceed the savings you get from your No-claim-discount!
Always look for add-on covers that help enhance your coverage and also reduce the expenses at time of claim, by paying a nominal amount of premium:
If you have a comprehensive car insurance policy always opt for roadside assistance add-on cover. The insurer will offer immediate roadside assistance on the spot of incident. Also, there are certain steps that you must follow -
Maintaining your safety is in your own hands, it is imperative to have a car insurance policy, but it will be follow safety measures while driving on the roads. Drive safely not just to avoid paying higher car insurance premiums but to ensure your safety and safety of your loves ones. Also, make sure that you buy a comprehensive car insurance policy to get immediate help in case of an accident.
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