Car insurance policy is mandatory in India. Thus, instead of making it a burden on your shoulders, why not make the most out of it? After all, it is about your own life; your friends and your family. You cannot just simply ignore it and take it for granted.

Below mentioned are certain points that will help you get the best out of your car insurance cover. Just have a look and then decide whether you need to follow them or not.

1. Be fully aware of what exactly do you need

To make the most out of your car Insurance Cover, you should be fully aware of the type of coverage that you need and up to what extent is it required. Keep in mind your affordability constraints as well as your priorities. Try and strike a perfect balance between the two so that you need not compromise much on any one aspect.

The auto insurance market deals with numerous types of coverage offers. To crack the Best Car Insurance Policy, complete knowledge regarding what you want and what not should be there. If this is not the case, you can never extract all the benefits from your policy.

Well, there are set legal minimum requirements that your car insurance company wants you to meet. But, you can always break the bar! If you think, that your asset is more valuable and in case of any accident or theft, you may require more coverage amount than mentioned in your contract as per the minimum requirements, you can always increase the coverage by paying more. But make sure this happens prior to the unfortunate event. Because if not, the insurance company will in no case change the clause at that particular moment.  And, you will regret if this happens!

 

2. Buy add-ons

You can always increase your cover by buying some extra services from the insurance company at nominal premium rates. Add-ons can be bought even if you are planning to go for vehicle insurance online.  Consider, for example, zero depreciation cover. Now, if you buy this, your car’s full value will be realized and not the depreciated value when the need arises. This is because the add-on prevents depreciation from reducing the monetary value of your vehicle. There are many add-ons that an insurance company can offer you. Make sure you buy them at reasonable prices and not soaring prices, because in the latter case the main motive behind buying the same will turn futile. Therefore, be careful before you make a decision.  It is advisable that you consult your insurance agent regarding which add-on to buy in particular and how many to buy. He or she can guide you better keeping in mind your budget as well as your needs.

 

3. Try to maintain the No Claim Bonus

No Claim Bonus is one of the most valuable luxuries that the insurance market provides the customers with. If at all, you do not make a claim in any particular year, you earn a No Claim Bonus. This gets accumulated over the years and the rate can rise up to as high as 50 percent. Thus, you can avail 50 percent discount on the own-damage premium. Isn’t it amazing? Well, this may look a bit unrealistic but it is not. If you act wisely, you can pay the expenses for the small damages from your own pocket without asking for a claim from the insurance company.  If you want to buy the Best Car Insurance Car Policy you need to make some smart moves and not just make decisions blindly.

No Claim Bonus can be very useful in future. Keeping in mind the risk factor, you never know what may happen tomorrow and whether your coverage is sufficient for the same or not. Thus, having an extra amount saved with you is always a good sign.

 

4. Maintain a decent credit rating

The insurance companies these days have started to use credit score as the basis of setting rates. If you have a good credit score, it is likely that the rates that you need to pay will be lower in comparison to someone who has a poor credit score. The logic behind this is simple! A decent credit score reflects your credit. It helps the insurance companies determine the chances of insurance loss even if you choose for vehicle insurance online.

Not all of the insurance companies use credit score as a way of estimating the rates, but this is a recent trend that majority of the companies are adapting to. Therefore, try to maintain a decent credit score as much as possible.

You can consult an expert regarding how to go for the same.

 

5. Insured Declared Value

The Insured Declared Value is the market value of your car net of age depreciation. It is very important for a customer to maintain his or her Insured Declared Value (IDV). As time passes by, it is likely that the vehicle experiences wear and tear which reduces the value of the car. Additional minor dents and scratches reduce the Insured Declared Value even further. And, these are factors that are inevitable. Depreciation cannot be avoided, no matter what.

You will be glad to know that the Insured Declared Value is payable and thus, the higher it is the more better it is for you. Therefore, just get those dents and scratches repaired if you want your car value to be high enough for insurance purposes.

This is very important component of a Best Car Insurance Policy. Make sure you do not forget it!

 

6. Keep a clean driving record

Well, it is easy to say than to do; but you have no other option. Try your 100 percent to maintain a hassle-free driving record. The relationship is quite easy to understand; if you happen to be a low-risk driver, the insurance rates offered to you would be less and vice-versa.

This is because; being a good driver reduces the risk of loss for the insurance company.

A clean driving record does not only include minimal road accidents, but there is a lot more to it. For example, if you have no police records for breaking the traffic rules (drinking and driving, over speed etc.), you take care of your asset properly (no case of theft) and many such factors, you have a good chance of buying the insurance policy at fair rates with a good coverage.

Be extra careful and avail the perks of the same.

 

7. The insurer should be informed about each and everything

The main purpose behind any insurance policy gets fulfilled if the claims are properly settled, isn’t it? What is the use of a vehicle insurance online if you are unable to settle down your claims? The best way to settle down the claims in an easy and quick manner is to inform the insurer about the same.

Not only about the claims, but you should provide your insurer with every kind of information. A change in your address, any extra changes made in your vehicle etc. is a few to include. This way, your insurer can handle things in a lot more easy manner, without any confusion or misunderstanding.

 

 

8. Stop delaying renewals!

Everybody likes postponing payments. But if you do the same in the insurance market you tend to lose a lot. See, you need to understand one thing. No matter how hard you try, renewals are unavoidable. It is a part of your insurance policy and needs to be accepted. Thus, it is better if you renew your policy on a regular basis. This way you not only get continuous coverage but also lower premiums. You must be wondering how? If you get your policy renewed before the expiration date (say, a month or two) you will have to pay a lower premium amount. On the other hand, if you get the policy renewed after the expiry date, the opposite may happen.

Thus, be extra careful!

 

These are few of the tips, which if done in practice, will really help you a lot to get the Best car Insurance Policy.  A word of caution. If you have partial information regarding any of the above mentioned points, a rational decision will be to consult someone in your family whom you can trust or a professional insurance agent before taking any step. One wrong move can make you regret your entire lifetime.

Thus, avoid this situation. Make right decisions. Act wise. Act rational. All the Best!