As a law-abiding citizen of India, buying auto insurance is your responsibility. But, it does not have to burn a hole in your pocket. A little smartness will go a long way in helping you save on car insurance.
This is exactly why we are here, to give tips on buying cheap auto insurance at the right time to save money.
- #1 On Renewal
- #2 While Selling a Vehicle
- #3 When buying Your First Vehicle
- #4 After Claims
- #5 When Usage Decreases
#1 On Renewal
You will have a lot of options while renewing your motor insurance policy. On renewal, you will get a chance to make adjustments in the coverage. Correct your past mistakes this time.
- Reconsider the insurance company: Are you happy with the service they provide?
- Compare Policies: Did you compare policies from different insurers last time?
- Adequate Coverage: Are the add-ons you bought last time, useful? Do you need more coverage?
Ask yourselves these questions and make necessary adjustments in the new policy. Also, if you had not filed a claim, you might get a No Claim Bonus (NCB).
#2 While Selling a Vehicle
If you plan to sell your vehicle, consider selling it when insurance renewal is due. As you will not remain the owner for long, buying the most basic coverage makes sense. Having a Third-party (TP) Motor Insurance is mandatory by law in India. Cover your vehicle with a TP policy while selling it and transfer the insurance to the new buyer.
#3 When buying Your First Vehicle
Just like renewing an auto insurance policy, buying a fresh one offers a chance for you to get a cheap policy with sufficient coverage. In this case, since your vehicle is brand new you will get more benefits as compared to an old one.
For example, the NCB is offered only for the first five years of buying a new vehicle. This is a long but continuous way of saving on motor car insurance. Buying Comprehensive Auto Insurance Policy is also a good idea at this point. It will slightly increase the premium amount, but will offer extensive coverage for your brand-new vehicle.
#4 After Claims
In other countries, claiming has an adverse effect on an auto insurance policy. Fortunately, in India, this is not the case. Even if your vehicle is considered as ‘total loss’, you get to buy a brand-new policy for a new vehicle. The premium amount will depend on the make and model of the vehicle irrespective of your claiming history.
#5 When Usage Decreases
Say you got a new job and the office is located in the vicinity of a railway/metro station. Commuting is way easier now and you don’t need to take your vehicle to your new workplace. Your auto insurance policy should reflect this reduced usage. Add-ons like Roadside Assistance or NCB Protection can now be removed, as the chances of you raising a claim becomes less due to less usage.
Also, if your car is just parked somewhere and you don’t use it very often, a simple comprehensive policy would suffice, to protect it from theft and vandalism. It will also be beneficial if you are living in an area prone to natural calamities.
The Bottom Line
Buying cheap motor insurance is not rocket science. By using simple online tools like comparisons and car insurance premium calculator while buying or renewing the policy, you can easily get the cheapest product available. These tools are at your disposal all the time. A cheap policy is not necessarily the worst if you choose the right coverage. Thus, the right time to buy cheap auto insurance is, Always.