By Paras Pasricha
Saving on motor insurance premium need not necessarily translate to compromising on coverage. You can adopt a few smart ways to lower your motor insurance premium while still ensuring comprehensive coverage for your new car.
Avoid opting for bundled deals
While it’s both tempting and convenient to walk out of the showroom with a bundled car insurance deal, this could lead you to higher premium. Bundled deals often come with fewer customisation options and may not offer the best value for your specific needs. By comparing policies online, you can explore a wider range of offerings that suit your budget without compromising on coverage.
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Understand deductibles
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Deductibles are an essential part of your motor insurance plan and directly impact your premium. The higher the voluntary deductible you opt for, the lower your premium will be. For confident drivers who are less likely to make claims, selecting a higher deductible can mean immediate savings. However, there is a mandatory deductible of`1,000 for most cars. Strike the right balance between deductibles and risk tolerance to reduce your premium without leaving yourself vulnerable in the event of a claim.
Evaluate add-ons carefully
Add-ons enhance the coverage of your motor insurance policy, but they also come at a cost. Instead of selecting every available option, focus on those that are relevant to your circumstances. For example, if you live in a region prone to heavy rains like Chennai or Bengaluru, add-ons such as engine protection or consumables coverage might be essential, as they can help you avoid large repair costs in case of water damage.
Driving less? Go for ‘Pay as You Drive’
If you are someone who doesn’t frequently hit the road, the innovative ‘Pay as You Drive’ (PAYD) model is definitely worth considering. You pay a lower premium when you drive less, which can result in substantial savings.
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