- Date : 26/06/2020
- Read: 3 mins
- Read in : English
The changes in motor insurance guidelines could mean higher premiums. Here’s how you can keep your insurance costs under control.
There have been changes in the motor insurance guidelines effective August 2018, which most of us must already be aware of. These changes encourage vehicle owners to go in for long-term insurance – 5 years for two-wheelers and 3 years for two-wheelers – rather than renewing it from year to year. However, this also means insurance premiums are set to rise.
Worry not, we’ve got you covered. Oh, and lest we forget, there’s good news too. Personal accident cover has now been increased to Rs 15 lakh from the earlier paltry Rs 2 lakh.
You may be tempted to delay the purchase of a vehicle this year, given the additional insurance cost, coupled with the rising prices of fuel. However, we’ve got some ideas that can help you keep your insurance costs under control.
1. Get one-year own damage (OD) cover along with third-party cover: You will have to follow the IRDAI mandate and purchase a long-term third-party cover. While you do that, also take own-damage cover for one year.
2. Opt for deductibles: Opting for these deductibles when making a claim can reduce your insurance premium to a great extent. Use this option if you have not claimed damages in the last few years or are a safe driver.
3. Transfer the no-claim bonus: Are you planning on purchasing a new car after selling an old one? You can transfer the accrued NCB to the new motor insurance policy.
4. Buy zero depreciation add-on cover: As the vehicle gets older, the cost of depreciation increases. Start buying add-on cover in the first year, when the depreciation costs are lower.
5. Renew your policy on time: This is more important than you may think. In case your policy expires, your no-claim bonus will no longer be valid. Keep track of your due date or talk to your insurance agent to send you a reminder when it’s time for renewal.
6. Ask for discounts: Your profession, age, driving style, and other such factors qualify you for deductions on your vehicle insurance premium. Feel free to ask around when buying or renewing a policy.
7. Loyalty benefits: You can always request your current insurance company to give you a good deal if you continue with them for your vehicle insurance policy needs.
8. Discounts for members of AAI and those covered under the MV Act: If you fulfil any of these criteria, you can get a discount on your insurance premium. Furthermore, if your car has extra safety devices (such as steering lock, airbags etc.), you can request an additional discount.
9. Do not file claims for minor accidents: Pay for minor scrapes and small accidents from your pocket; or else you will lose the benefit of your no-claim bonus. Besides losing the discount you get upon renewal, your own-damage premium will also go down substantially.
Keep these tips in mind when renewing your vehicle’s insurance policy!
Note: IRDAI recently announced you don't need to compulsorily buy multiple personal accident covers every time you take insurance for a new car, effective from January 1, 2019. Now you can have a single personal accident cover for multiple cars.