The insurance regulator has overhauled the guidelines per se motor insurance in view of the current situation wherein people now need to take a long-term third-party motor insurance in case of two-wheeler for 5 years and 3 years in case of four-wheelers. And given the longer tenure, the premium for motor insurance has trended higher.
Also as another facet is the fact that personal accident cover has been increased from Rs. 2 lakh to Rs. 15 lakh. So, while you may because of these indirect costs such as rising fuel and insurance charges, you may give in to defer your much-covered vehicle purchase this year. Here are a few ways sticking to those you can secure insurance at a lower cost.
1. Secure multi-year third party cover and one year own damage cover: To adhere to the IRDAI mandate, you will need to buy the long-term TP cover. And while the own damage cover is not mandatory, you can take an OD cover for one year.
2. Opt for deductibles: These out of pocket expense when making claim reduces insurance premium considerably. And this is suggested in cases when you have not made the claim for few consecutive years or are an extremely safe-driver.
3. Discount for not in use vehicle: In case your vehicle has remained off the road for some or the other reason, you can avail a discount or extend the coverage for period during which the vehicle has been laid-up. But for availing such an option, you need to inform your nearest RTO office.
4. Make a transfer of no-claim bonus: If you are buying a new vehicle and selling the older, you can get the previous NCB transferred to your new motor insurance policy. This is done by carrying forward the accrued no-claim bonus in your earlier policy.
5. Buy zero-depreciation add on cover over the years: As in the first year itself, the cost of depreciation is perhaps low.
6. Renew policy on time: As else in the other scenario, the no-claim bonus will not be available. So, keep it as a reminder in your organizer sheet or ask your agent to remind the renewal of your vehicle insurance as and when it becomes due.
7. Parameters such as profession, drivng style as well as other factors make you eligible for discounts on motor insurance premium.
8. Loyal customer is also able to crack a good enough deal if he or she considers buying a car insurance from its insurance company.
9. Members of AAI and those covered under Motor Vehicles Act: Such individuals are also provided a leverage as a discount on insurance premium. And further vehicle owners if they equip their vehicles with safety devices such as lock in case of steering, air bags etc., you can get a discount of 5%. 10. Do not seek claims for small accidents: As in the case you lose on the distinct advantage of no claim bonus. Other than the discount that you get owing to the claim free year, in the consecutive years, own damage premium also goes down substantially. So, you should avoid making a claim when the repair charges are less than no claim bonus amount.