If you are married, your car insurance could be cheaper
- Jan 17, 2013, 23:52 PM IST
New Delhi: With the downturn setting in, the insurance companies are trying just about everything under the book to ensure that new customers come to them, and the old ones continue to trust them. As per details in the industry, factors like marital status, covered car parking, sparing daily use, and many other such factors are now helping customers get discount on their auto insurance. Also other strategies such as differential costing for different claims have been put into effect, to ensure a stronger revenue steam by auto insurance companies.
According to Sanjay Datta, head of underwriting & claims, ICICI Lombard, says "Traditionally, car premiums were decided upon the basic factors i.e. engine capacity, age of the car and geographical zones. Over the last four years, insurers in India have started using several other 'asset-based' parameters - such as the type of fuel used in the car, effective anti-theft devices etc. Further, few insurers now are trying with 'demographic' parameters as well - these include the occupation of the insured, the age of the driver/insured etc." Here are a few pointers to keep in mind which will help you get cheaper car insururance:
- Provide more information on the proposal form
Companies are offering a discount to those who are willing to share the most information on their proposal form. Based on income brackets, professions, marital status, apart from location of vehicle parking, and possibility of claims can land up with lower premiums for the customer.
- Purchase online
The internet commerce has come a long way from what it used to used to be. Companies are charging a lower premium when the purchases happen via the internet, where by a few clicks convey all information needed, and transactions go on smooth.
- Protect the 'no claim' bonus if possible
If the circumstances are right and make economic and utility sense, try and get the befit of the no claim bonus which translates into lower auto premiums for insurance. Upto 50% discounts can be availed if the no claim bonus is taken, which makes it much more economical for car owners. Also, small amount claims could be avoided by not going to a company show room but a good and reliable car garage that can get things done for a lower cost. This could help upto 20% per year for car insurance renewal.
- Choose the fuel type wisely
If you choose a CNG or diesel vehicle, you could end up paying more for the car insurance as compared to a vehicle run on petrol. Hence it would wise to compare running costs, and insurance premium costs alongside.
- Anti-theft devices
When an owner of a car installs an anti-theft device like central locking for anti-theft alarm, it shows a large degree of responsibility towards the vehicle. Insurance companies charge lower premium in such cases, as compared to the owners who dont install such devices on the cars. Also, at the time of purchase if there an anti-theft device has been installed, it helps with premiums upto 80% of premium value, and also helps get future claims easily in cases of damage.
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