Optimize your car insurance premiums with NCB, deductibles & the right coverage

Image credits to “Bajaj Allianz General Insurance”  

More Attention to Car Insurance Today Means a Smooth Ride Tomorrow

Buying a new car is nothing short of a milestone, similar to purchasing a house. If you’ve had your eyes on a particular ride, and managed to get it home, the feelings of joy and euphoria must definitely be unparalleled. But your job is not done yet. With a great car comes great responsibility.

Maintenance and upkeep of the vehicle is of prime importance, something you should not take for granted. Often motor insurance is purchased without much research, which causes car owners to repent in the long-run.

Importance of Car Insurance

But why exactly is car insurance of such significance? In a country like India, where road accidents are frequent and the quality of infrastructure is still improving, there is a dire need to ensure protection for yourself and your vehicle. Statistics are proof of the alarming rate of road accidents in India. We hold the record for the highest number of road mishaps in the world, which leave 1.5 lakh people dead and more than 3.5 lakh crippled every year.

It isn’t that car insurance is only needed under extreme circumstances, but it serves as a financial cushion in such cases. What’s more, with insurance, even the everyday wear and tear of your car can be covered. This can ensure that your vehicle stays in mint condition for a long time, and at the same time, you receive financial protection.

While buying a car insurance policy, you need to read the fine print and ask the correct questions. For instance, what are some of the key features of the policy? What is the difference between third party and comprehensive insurance? How to get the best deal on premiums? Only when all these queries are answered to your satisfaction would mean that the insurance policy you have picked ticks all the right boxes.

Third party vs comprehensive car insurance

While cost is an important factor while making a purchase decision, we need to understand the difference between third-party and comprehensive insurance. The primary differentiator is the kind of coverage it offers. In case of a third-party insurance, you get coverage only against third-party damages and losses, while comprehensive car insurance aims to cover your own damages as well. With the large number of accidents around us, it is essential to be well-covered in all aspects. Of course, having a third-party car insurance is mandated by law, and if you do not get one, there’s a possibility of your driving license being revoked. But only a third-party insurance is not sufficient.

There are several reasons why comprehensive car insurance is the right choice for vehicle owners. For one, it covers for your own damages. These could arise due to any unforeseen circumstances, including accidents, floods, earthquakes, or other reasons. It also takes care of third-party liabilities. Say for instance, you end up in an accident, and damage another person’s car, the costs will still be covered. Getting comprehensive car insurance offers you the freedom to customise your policy for better coverage. This can be done through the use of various add-ons or covers for enhanced coverage.

You can also customise your Insured Declared Value. This is the maximum claim your insurer will pay, in case your vehicle is damaged beyond repair or is stolen. Last but not the least, these policies have personal accident cover included. This means you do not have to opt for it separately.

How can you optimise car insurance premiums?

No Claim Bonus: There is a terminology that is often used when talking about car insurance. This is a No-Claim Bonus or NCB, which is a type of reward that car insurance providers offer to the customers, when they do not file any claim during a given year. As part of this benefit, an insured person receives a concession on their premium, when they go for renewal of their policy during the next policy year.

In fact, experts suggest that if there’s a minor damage that your car goes through during the year, make sure you pay it out of your own pocket so that you can claim the NCB. Moreover, this benefit is not connected to your car, but to you. Just make sure to undertake timely car insurance renewal before its expiry date to enjoy the benefit of NCB. It also helps you save big on car insurance premium, to the tune of at least 20%, and up to 50%. * Standard T&C Apply

Last but not the least, NCB is easily transferable. Make sure you shift the policy before your current one expires. Please visit the official website of IRDAI for further details.

Voluntary deductible: The conversation around car insurance is incomplete without considering voluntary deductibles. It is the amount that a policyholder agrees to pay for the repair of a car, in case of a claim. This is something that a policyholder must pay for, before the insurer makes his contribution to the claim value.

Voluntary deductibles will help you avail savings on your car insurance premium. This means the higher your voluntary deductible amount, the lower your insurance premium.

Choosing a good service provider

Once you understand all the nitty-gritties around car insurance, choosing the right service provider is also critical. With Bajaj Allianz General Insurance, you can get comprehensive car insurance policy along with benefits like a quick online process to a high claim settlement ratio, along with cashless network garages. Every policy is only a click away. Just ensure when you sign up online for a policy, you have the soft copies of your vehicle registration details, driver’s license ready. You could also opt for a range of add-ons provided by the insurer that include zero depreciation, engine protector, 24x7 spot assistance, key and lock replacement, consumable expenses, personal baggage protection, as well as conveyance benefit. * Standard T&C Apply

All in all, the right car insurance policy can make your ride smooth and seamless. So, don’t jump the gun. If you care for your car, make sure to get the insurance it deserves. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.


[1] https://economictimes.indiatimes.com/news/politics-and-nation/india-tops-the-world-with-11-of-global-death-in-road-accidents-world-bank-report/articleshow/80906857.cms

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Printable version | Dec 1, 2021 3:38:57 AM | https://www.thehindu.com/brandhub/optimize-your-car-insurance-premiums-with-ncb-deductibles-the-right-coverage/article36879211.ece

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