You have finally bought your dream vehicle, and now you need to take certain measures to protect it. The first step is purchasing a car insurance policy. As per Motor Vehicles Act, 1988, it is mandatory for car owners to have a third-party motor insurance policy. A comprehensive car insurance policy offers car owners much-needed financial protection against untoward incidents. It provides coverage against natural and manmade calamities such as riots, strikes, floods, earthquakes, theft, and vandalism. The owner may also gain protection against bodily injuries, death, as well as damage to property.
With a plethora of car insurance policies with as many motor insurance providers in the market, choosing the one that fits your needs at the most competitive price may be a daunting task. Keep the following five tips in mind to buy a car insurance cover for your vehicle at competitive prices.
1) Choose Your Car Insurance Carefully
Before you buy car insurance online, it is imperative to do your due diligence. Do a thorough research of the various car insurance policies by checking the features and benefits against the price charged by the car insurance provider. Once this box is ticked, you can check other aspects such as premium payment methods, claims settlement ratio of the car insurance company, the procedure for making motor insurance claims, and reputation of the car insurance provider.
Online car insurance distribution channels might be cheaper than traditional offline methods due to elimination or reduction of paperwork. This means that motor insurance companies might pass down cost benefits to you, allowing you to enjoy lower car insurance premium rates.
2) Avail Of No Claim Bonus (NCB)
An NCB is awarded to car insurance policyholders who did not make any motor insurance claims in the previous policy year. Simply put, this is a way for car insurance companies to reward car owners for good driving. This reward enables you to become
eligible for discounts at the time of subsequent car insurance renewal. For example, if you did not make any car insurance claim in the first year of the policy, at the time of renewing your motor insurance policy in the following year, you may have to pay a lower premium towards your motor insurance policy as a result of the NCB benefit.
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