Getting a cheap car insurance is not a hard task, after study this article you will get a better idea about how to get a cheap car insurance.
Car insurance is a mandatory thing in almost every country in the world. If you have a car then you must have a insurance with it. If don’t have then you have to get it.
In every country you will find almost many insurance companies that provides car insurance, but getting a good and cheap car insurance is very needy for your financial rich.
This articles will help you in make a decision to take more better and low cost car insurance. Before we start, let we take an idea that how car insurances are calculated.
How Car Insurance Is Calculated :-
You will hear the insured the desired value i.e. IDV, no claim bonus i.e. NCB, depreciation etc. term many times. But do you know what they mean?
There are two types of insurance. The first is on the Deccan compacts cover and the second is the third party cover. The Own Damage comprehensive Cover, depending on the three major factors, is location, car’s edge and its engine capacity. While the third party cover depends only on the engine capacity of the car.
To understand the insurance closely, we take one year old Alto as an example.
If your alto car is more than a year old and less than 2 years, then it will be 80 per cent of the ex-showroom value of the insured-owned If the car’s X showroom price is Rs 4 lakh, it 80% to Rs 3 lakh 20 thousand rupees.
Now, the premium will be calculate according to 3.127 per cent. It will take 3 lakh 20 thousand rupees. The amount of money that will be formed is 10 thousand rupees.
Car Insurance Premium :
Now, the insurance premium comes to a turn. This company rate is different. Many companies give a discount of a few per cent on premium amount.
Let’s look at it with an example. Suppose a company is offering a discount of 50 per cent, with a 50 per cent amount of Rs 10,000 rupees.
Now the next and important stop is the no claim bonus. It seems to know how much money you owe to insurance. If you have not claimed to be insured for years past, you get a discount of about 20 per cent in premium. This exemption grows in the coming years if you do not claim insurance.
Remember that we are talking about a car more than a year and less than two years old. In this respect, a 20 per cent no claim bonus per 1,000 rupees is made by a thousand bucks. In this way, you get a discount of Rs. 5, 000 in a premium amount, and you have to pay only Rs 4 thousand as premium.
Third party premium :
The same is the third party premium. It is for you to compensate for the injury or damage of another person. The amount of premium is fixed according to the capacity of the car engine. This year is the revival of the year. For example, as the Alto car is below 1 thousand cc, it will have a premium of Rs 1,468. For cars with engines of 1 thousand to 1,500 cc capacity, Rs 1,598 as premium charges are charged. While Rs 4,931 for vehicles that are more than 1,500 cc.
In such a situation, you will be able to add Rs. 1,468, which is for vehicles over 1 thousand cc engines, to INR 4 thousand. The total amount is to be 5,468 rupees.
Now take the last step. The total amount of insurance premiums also adds personal accident cover and service tax. RS 100 is a personal accident cover. While 14 per cent of the service tax appears. Now, if total funds are seen, it will add 14 per cent of Rs 5,486 and Rs 100 of the xdinate cover. The total amount is 6,348 rupees.
So now you get a good idea about how car insurance is being calculated.
How To Get Really Cheap Car Insurance.
Here we are going to discuss every point that will help you in getting cheap car insurance easily.
1. Drive Safely :-
You might be wondering what it was. If I will drive safe car, then I need insurance? , but your old record will decide how much cheap car insurance you will be get.
In fact, your car insurance determines your driving skills. If you run the car well, you will actually get cheaper car insurance.
Now you will be wondering how it will happen.
When you drive safe car, the insurance company will be agree that you are not being caught in any kind of accident. The car insurance company is less likely to be harmed. Therefore, the company lowers the price of your car insurance.
2. Compare Different Car Insurance Company :-
So you know that everyone’s way of thinking is different. This applies on companies too. All companies charge a different price on the same insurance coverage. The main reason for charging a different price is that all the companies measure your damage on different scales. The criteria of all companies are different, which is why your premium is different.
In this way, you need to compare insurance premium to all the companies to see which would be appropriate for you. This way you will be able to take the cheapest and most outstanding car insurance.
3. Bundling Discounts :-
This is the third most wonderful way to take cheap car insurance. Take car insurance from the company you have already taken insurance from. This will give you a bundling discount. says that the bundling discount is the best in the insurance sector.
It can be understood by this.
As you’ve kept life insurance from a company ABC, you can take car insurance from the same company. And say whether he can do both of your insurance together. The company will give you a bundling discount.
Some companies give discounts of up to 25 to 35% on taking bundling discounts.
4. Credit Score :-
Your credit score is also matter when you buying a cheap car insurance. Good credit score will provide you really good and cheap car insurance. By your credit score, companies are insured that you are highly reputed person and insurance with you is low risky as compare to others who doesn’t have a good credit score.
According to a report, A poor credit score can boost your car insurance rates by hundred of dollors a year as compared to others who having a good credit score.
5. Review Rates Every Year:-
Many companies increase their insurance prices once a year after giving insurance even the customer does not realise that the premium has been increased. So you should check before your insurance premium renew every year. This will help you know if your insurance company has boosted your premium prices.
Some car insurance companies also give discounts on early renew. Some car insurance companies give early bird discount of up to 10%. This way makes it easier for you to take cheap car insurance.
6. Take Usage Based Cheap Car Insurance :-
If you run too few miles and run in a very safe way, this point can be very rewarding for you. In fact, some car companies give you incentive because of your driving method. For this, car insurance companies put a monitoring device inside your car. Which shows how much and how you use the car. The more better you use the car, the less your car insurance premium will be.
7. Review The T&C:-
Always review the terms and conditions when you buy a car insurance. Sometimes companies add some points that are not suitable to you and you will be in terrible. So reviewing t&c of cheap car insurance is more important than anything.
8. Ask All Discounts Available :-
You can ask for all discounts available like homeowner discount, paid-in-full discount, defencive driving course discount and good student discount. Sometimes you get getting married discount. So ask for every possible discount available for you.
9. Compare Both Prices And Features :-
When you buy a cheap car insurance make sure that you are not compromising with your security. Always compare features and prices whenever you buy a cheap and good car insurance.
10. On Time Payment :-
When you are going to renew your car insurance, make sure you paid on time. Late fee and other charges can make higher you car insurance price.
Check out Video to get Car insurance
We have mention every point that must be considered whenever you are going to buy a good car insurance. This article will also help you in getting good car insurance rates.
If you find that this article can be helpful for your friends too, let share it with him/her and help. Always remember that Helping others gives you more happiness.