Most people buy car insurance without getting much information about policy terms. Paying low premiums does not mean that you get the best coverage. To avail the best pricing, you should ensure that you get better coverage at a cost-effective premium along with additional benefits. Read further to know the tips for best car insurance pricing.
When it comes to buying car insurance in India, most people tend to make their purchase decision based on the premium amount alone. They usually tend to buy a plan that has the lowest premium. But this is a grave mistake. A policy with a low premium may not necessarily be cost-effective; it may have a low coverage option, a higher deductible, etc. This means you may have to spend more in the event of an accident.
So, if you’re looking to get the best pricing for car insurance, below are some of the tips:
Compare insurance rates:
For many first-time insurance buyers, seeking the best insurance policy can be challenging. To begin with, you can start searching for online insurance policies. Compare the quotes, features, benefits and exclusions, taking into consideration your budget requirements. Online sources offer best car insurance quotes as compared to offline as you must pay brokerage commission, travel costs and others.
Some insurance companies consider estimated annual mileage in setting insurance rates. If you want to avail the best pricing for car insurance, your car needs to have low mileage. Although the distance travelled has a small affect insurance quote, yet it is an essential factor. If you don’t drive your four-wheeler much, then you can ask insurers for low-mileage discounts.
Deductibles is a compulsory or voluntary amount which you have to pay out of your pocket if you raise a claim request. It is a kind of sharing of risk between the insurer and the policyholder. If you opt for a high deductible, the premium becomes less.
Insured Declared Value or IDV:
When buying car insurance with the best pricing, IDV plays a significant role. The best insurer is the one where you get reimbursement in case your car gets stolen, or there is a complete or partial loss. IDV represents the maximum sum assured. Make sure you receive the right coverage at the right cost.
Good credit score:
Some insurance companies use credit-based insurance when determining premium and insurance quote. If you have a good payment history, then it allows insurers to offer fair pricing for every customer.
To avail the best car insurance quote, you can ask companies for discounts such as good driver discounts or usage-based insurance discounts if you have no accident and violation records. Although this is less likely to help you, you can ask for the discounts while making a comparison of various policies.
So, the next time you’re looking for the best car insurance quotes keep in mind these tips. Note that your ultimate goal should be to get the best deal that offers maximum coverage and insurer charges premium rates as per your requirements.
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