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How to Avoid Overpriced Car Insurance Policy and Choose the Better One?


Today, with insurance companies offering online services, buying car insurance is easy, but purchasing a suitable policy at an affordable price may not be easy. Read on to know how to get the best policy with an affordable premium.

The insurance companies in India offer a variety of car insurance plans to suit the different needs of the people. While the options are aplenty, choosing the right policy at the right price can be challenging, especially if you are a first-time insurance buyer. Often, when people buy a new car, they tend to purchase an insurance cover from the car dealer, only to realise later that they don’t have enough coverage, or they are paying a high premium.

To avoid this situation, it is paramount that you don’t buy a policy in a hurry and take your time to research the different options available in the market. Here are a few sure-fire tips that will help you get the right policy at an affordable price.

Buy Online

A definitive way to get the best car insurance policy to suit your needs at an affordable price is to buy online. When you purchase online, not only do you get to compare car insurance prices from different insurance companies, you can also compare the policy offerings and make an informed buying decision.

Choose the right type of policy

Before you set out to purchase a car insurance policy, you must know about the type of policies available. In India, insurance companies offer two types of car insurance policy – third-party insurance and comprehensive insurance. These policies have different features, and the premium price varies significantly.

The third-party insurance offers protection only against damages caused to the third-party. It is a mandatory requirement for all car owners and has an affordable premium. If you drive a standard car and are looking for budget insurance, third-party insurance will be the ideal choice.

The comprehensive insurance, on the other hand, protects against damages to third-party and your car. It is a voluntary purchase and has a higher premium. If you drive a luxury car and are looking for a plan to provide maximum protection to reduce your financial liability, a comprehensive cover will suit your needs.

So, know your exact needs and choose the right policy accordingly.

Install anti-theft device

This is another effective way to get the car insurance policy at an affordable price. Typically, the insurance companies provide an attractive discount to policyholders who have advanced security and anti-theft devices in their car. Yes, these devices would cost you initially, but it could help you a significant amount on the premium in the long run.

Be prudent with the add-on cover

While it is advisable to buy add-on cover to extend the scope of your policy to cover damages that are not covered by your regular policy, you must be prudent with your choice. For example, if you drive with passengers in the back seat, you can consider buying a passenger cover. Remember, for every add-on cover you purchase the premium will increase. So, assess your needs thoroughly and choose a useful add-on.

Increase your deductible

A deductible is an amount that you pay for the repairs while filing a claim. Increasing the deductible will help you lower your premium. But, increasing the deductible is advisable in two cases – one, you are a safe driver, which reduces the risk of an accident. And, two, if you have not filed for a claim in the past few years.

Make an informed choice

No matter the type of plan you buy, you must get full clarity on what is covered and what is excluded under the policy. If you have any doubts, ask the insurer about it or know more about it by reading the terms and condition and make an informed purchase decision.

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