Do affordable car and motor insurance remind you of inadequate coverage, high insurance deductibles, and a lack of add-ons? If yes, your concerns are not unfounded. However, affordable car insurance helps you keep your premium amount low. That’s what makes it so lucrative.
However, a low premium also means car insurance quotes lower your car's insured declared value (IDV). This, in turn, reduces your policy's sum assured. Therefore, when searching for a cheap car insurance policy, you may have inadequate coverage against adverse events.
Due to this reason, you should avoid latching on to the first policy you stumble upon. Instead, it would help to do your due diligence to choose the best affordable motor insurance for your car. This will ensure your vehicle gets sufficient coverage with cost-effective car insurance.
How to find the best affordable car insurance with sufficient coverage?
While researching affordable car insurance, you should check these five things before buying motor insurance for your car.
Top 7 factors to keep in mind at the time of choosing the best affordable car insurance
Type of Car Insurance
There are three types of car insurance coverage. The car insurance premiums and benefits depend on the type you choose.
Third-party coverage: It provides basic protection and covers all the damages related to third-party liabilities (death, disability, injuries, etc.). In India, a third-party car insurance policy is necessary for all cars.
Standalone own damage: It covers all the damages your car sustains due to an accident, explosion, fire, or any calamity (artificial or natural), and others.
Comprehensive coverage: It provides enhanced coverage, including third-party and damage coverage.
Car insurance with comprehensive coverage is the best because it provides 360-degree protection. However, the premium is also higher. So, you have to choose as per your budget.
Insured Declared Value (IDV)
IDV is the maximum amount of cover you'll receive from your insurer if your car is damaged beyond repair. In addition, the IDV gives you an idea about your car's current market value.
Types and features of cars
The IDV of your car depends on its model. Your insurance premium will increase or decrease depending on your car type. A high-end vehicle will have a higher premium than a medium-range or budget car.
If the parts of your car model are difficult to find, then also the price of your insurance will rise.
Suppose you've installed an anti-theft device in your car. This will decrease your car's probability of theft significantly. In that case, your car insurance premium will also come down significantly.
Age of your car
Your car insurance premiums depend on your car's IDV. The higher the IDV of your car, the higher will be your premium. The IDV of old vehicles is lower than that of new cars.
Please remember that your car insurance company will offer you to choose your car's IDV or from a range of IDVs. A higher IDV always provides you with maximum coverage.
It is recommended that you keep these factors in mind while applying for affordable car insurance to ensure you receive sufficient coverage and the least amount of premium.
Add-ons or riders
Instead of getting a new policy, you can get more benefits by adding riders to your car insurance. However, you have to buy every add-on. Though add-ons enhance your car insurance policy coverage, they also increase your car insurance premium.
Some of the popular add-on coverages include:
Consumable cover
No claim bonus
Zero depreciation and others
Your car repair expenses will drop significantly if you buy these add-ons. However, you can't purchase add-ons or riders if you select third-party car insurance.
Insurance deductibles
Should you choose voluntary deductions while opting for affordable car insurance? As a rule of thumb, your premium amount will be less if you decide voluntary insurance deductibles are high. However, in case of any unfortunate event, you'll have to pay the amount as per your voluntary deduction. Your car insurance company will make the balance claim amount payment.
Geographical Location
Car insurance premiums depend on the location you live. Here are some examples:
Suppose you live in a place prone to accidents or uneven terrain. In that case, your car insurance rates will be higher.
If the place where you live gets heavy-and-low constant rainfall, your car insurance might be high.
In a place where the crime rate is high, car insurance premiums tend to be higher than in low crime rate locations.
Purpose of using your car
Are you using your car for commercial purposes or personal usage? It is essential to note that the rates of your car insurance vary depending on your intended use. For example, the car insurance premiums for a commercial vehicle will differ from those of a passenger car. So, you should declare the purpose of your usage when buying car insurance.
History of your car insurance claim
Do you claim car insurance frequently? Your history of claims can be accessed by your insurer when you apply for car insurance. If the claim rate is high, your application may get rejected, or the insurer may charge a rate. This is because a frequent car insurance claim will make your car insurance increase. In addition, insurers usually charge higher car insurance premiums for high-risk drivers.
If you claim car insurance frequently, you also miss the No Claim Bonus at the time of renewal. So, your chances of saving on car insurance decrease at the time of renewal.
So, consider these seven essential factors before asking an insurer for car insurance quotes.
You can get affordable car insurance with sufficient coverage by buying online. The most significant advantage is that you can lower your car insurance premium by up to 75%. So, always purchase policies online to reduce your premium or increase your sum insured and coverage. Try to check the nearest cashless garages under your insurer's wide motor insurance network. This will help you get a cashless repair facility without paying from your pocket. The claim is settled by the approved cashless garage directly with your insurer. So, consider these aspects to get the best affordable car insurance with sufficient coverage.
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