By Rakesh Kumar
As an Indian youth, I can’t deny how appealing it is to own a car, which stands for freedom and independence. But because of rising living costs, wages that don’t go up, and the need for complete insurance coverage, we need to be both financially smart and strong as we go down this path. Here are some smart ways to save money on car insurance without lowering the level of coverage in today’s insurtech-driven world.
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How it works? Car insurance is an important deal that protects us from losing money in case of an accident or theft. A study by Mordor Intelligence says that the Indian Motor Insurance Market will be worth Rs.0.9 trillion in 2023 and will reach Rs.1.53 trillion by 2028, growing at a CAGR of 11.16 %. This shows that car insurance is becoming more and more important in our lives.
Different Kinds of Car Insurance:
In India, there are two main kinds of car insurance:
Insurance against third-party liability: This is required by law in India and covers harm done to a third party, such as harm to their body or loss to their property. It doesn’t pay for damage to your own car.
Comprehensive insurance: As the name implies, this covers damage to your car as well as third-party liability. It comes with more comprehensive protection and is strongly advised.
The name of this type of insurance says that it covers both damage to other people’s property and injuries you cause. The safety it provides is better, and you should definitely get it.
Check the value of your car: First, check the value of your car. Comprehensive insurance is a good idea for a brand-new, high-value car. On the other hand, third-party insurance might be enough if your car is old and has lost a lot of value.
Smart ways to save money: Deductibles: You might want to choose a bigger deductible. This could lower your insurance rate, but make sure you can pay the amount if you need to file a claim.
No-claim bonus (NCB): Look for policies that offer NCB because it can lower your rate by a lot. When you switch insurance companies, NCB can sometimes be moved.
Add-ons: You can make your insurance fit your needs by adding things like Zero Depreciation Cover, Roadside Assistance, Engine Protection, and Personal Accident Cover.
Understanding what your policy doesn’t cover: Knowing what your policy doesn’t cover will help you make smart choices. Damage from driving while drunk, normal wear and tear, and damage from doing illegal things are all common omissions.
Comparing online prices: To get the most out of insurtech, compare online prices from different companies. It is easy to compare different plans and find the cheapest one on websites .
Keep up with changes to policies: Keep an eye on changes to the rules. Among other things, the Insurance Regulatory and Development Authority of India has suggested that private cars and two-wheelers should have long-term auto insurance. Knowing about these changes can help you decide what to do.
With online renewal and services, insurance companies can offer online services like renewal, claim handling, and customer service. Millennials who are good with technology and want easy adventures will like this.
Network of garages: Find out if your insurance company works with a lot of garages that will fix your car without charging you cash. This could make the claims process easier and save you time and work.
Check out the customer service: Quick and helpful customer service is very important. Look for insurance companies that have customer service that is available 24/7 and a good reputation for getting questions and cases taken care of quickly.
Renewal process: Don’t forget to renew your insurance every year to avoid losing coverage, which can cost a lot of money. Choose insurance companies that make it easy and stress-free to renew your policy, ideally online.
Premium payments: Look for ways to pay the premium that don’t break the bank. Many insurance companies let you pay your premiums in stages, which is helpful for millennials who are tight on cash.
Discounts: Look into the different discounts that insurance companies give. Some popular ones are discounts for anti-theft devices, memberships in auto clubs, and choosing your own deductibles. These deals can cut your premium by a lot.
Group policies: Many people have more than one car, and insurance companies often offer group auto insurance as a cheap way to cover all of them. You can save a lot of money on your insurance if you combine coverage for multiple cars.
Transparency and honesty: Being honest is very important when you buy car insurance. Make sure you give correct information about your car and driving record to avoid having your claim denied or facing legal issues.
Claims settlement ratio: Check an insurance company’s claims settlement ratio to see how quickly they handle cases. A better insurer is likely to have a bigger ratio.
Anti-theft measures: Think about putting in GPS tracks, car alarms, or steering wheel locks to keep your car safe. Car insurance rates are often lower for these kinds of safety steps. You might also be able to get discounts if you use an anti-theft device that is allowed by the ARAI.
Review and change your policy: Your insurance policy should be changed as your life changes. If you get married, move to a new place, or buy a new car, your insurance needs and costs may change. Review and change your policy often to make sure it fits your present situation.
When picking the right insurance policy, it’s important to find a balance between cost and benefits. A car is a big investment, so make sure you know what you’re doing. Insurance is also a good idea in case something goes wrong. You can save money on insurance premiums and still get the benefits you need if you follow these tips.
Finally, being honest, open, and having a good grasp of the policy terms are important for a dependable insurance experience. Young people today can protect their financial future and enjoy owning a car without stress if they know what they’re doing and pay close attention to the details.
-The author is founder, Square Insurance. Views expressed are personal.
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