Cheap and Affordable Car Insurance

Everyone wants low premium car insurance, offering all useful features when investing in car insurance policy. However, a cheap car insurance policy may only sometimes give you the best coverage and IDV. Therefore, it is suggested that even when choosing the affordable car insurance policy, consider selecting the coverage benefits and factors that impact your car insurance premium.

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How to Get Cheapest Car Insurance Online?

Here are some valuable tips that will help you choose the low cost insurance for your car:

1. Compare Car Insurance Quotes

   You can easily compare car insurance quotes online through Policybazaar.com. Typically, you can save up to 85% on your insurance premium, hence getting an affordable car insurance policy for your four-wheeler.

2. IDV

   This is the maximum compensation you can get in case of total loss. A higher IDV can also increase your premium amount. Thus, make sure to choose your IDV wisely.

3. Voluntary Excess

   Say, in case of an accident, you voluntarily agree to pay for the first 5 thousand rupees. Then, this amount can be reduced from your premium. But there can be a problem if your agent does this without informing you. This is what happens quite a bit, so watch out.

4. No Claims Bonus

   Please ensure you get the right no-claims bonus discount. If you raise a claim during the policy year, you may lose your NCB, thus losing any discount on your future renewal premium.

5. Cashless Facilities

   Most car insurance companies have a cashless settlement process with multiple partners in every city. An insurance broker like Policybazaar.com can guide you regarding which companies have a cashless settlement tie-up with which garage. Also, make sure to look out for cashless garages near your location before purchasing a policy.

6. Pay as You Drive Car Insurance

   If you are an occasional driver, you can also opt for the Pay as you drive car insurance offered by many car insurance companies. This affordable car insurance plan offers you a discount on OD premium based on the number of kilometres driven in a year and the driver's driving behaviour.

7. Opt for PA Cover

   You can also get additional Personal Accident Cover for passengers and drivers with your vehicle insurance plan. This is a great way to insure people who travel in the car with you. It offers a compensation of up to Rs. 15 Lakh in case of death or disability.

8. Be Truthful

   Be truthful in your declarations on the proposal form. This will ensure that your genuine claims will be paid by the insurance company.
   There is a lot of misinformation in the market. So, get everything in writing or cross-check every piece of information before purchasing a plan. Always drive safely. Never drive under the influence of alcohol. Over time, this will reduce your premium while covering the risk.

9. Ask For Discounts

   Car insurance providers also offer anti-theft discounts, NCB discounts, AAI Membership discounts, voluntary deductibles, etc. So, ask for these discounts while purchasing a low premium car insurance policy.

Car Insurance Rates from Different Car Insurance Companies in India

Let us look at how the premium for the same car varies for different car insurance providers due to the factors mentioned above. The table below shows the list of best car insurance companies offering a 1+3 Bundled plan (1-year own damage + 3-year third party) for a brand new Tata Tiago XE Petrol (1199cc) registered in (2024) New Delhi, India:

*Disclaimer: The table mentioned above is according to the alphabetical order of the insurance company. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

(The above figures (As of 12-11-2024) are for reference purposes only. Auto insurance premiums vary from one insurer to another since car make and model, IDV, manufacturing year, add-on coverage, policy type, etc. Your discretion is required at the time of purchase.)

Factors that Determine Car Insurance Premium

Before deciding on low cost insurance for a car, make sure to read the factors that determine the insurance premium of your vehicle. Take a look:

1. Driving Records

   The insurance providers take your driving history and claim records into consideration. If you have a history of being involved in road accidents and violating traffic rules, car insurance companies can charge a higher premium.

   Also, if your car insurance shows frequent registration of claims, the insurer will presume that you will be more likely to raise a claim in the future. This will eventually reflect in your car insurance price. On the other hand, maintaining a clean driving record and claim history will help you avail yourself of a no-claim bonus reward.

2. Car Age and Coverage

   All insurance companies consider the age of your four-wheeler when calculating the final car insurance price. A newly purchased car will likely attract more premium than an old car. Thus, if you want to minimise your out-of-pocket expenses, it is recommended that you buy a comprehensive car insurance policy.

3. Type of Car and its Features

   The type of car you own is an essential factor in determining policy coverage and its premium amount. You can get affordable car insurance quotes for base model cars, but for luxury cars, the premium is usually higher because of the cost involved in the repair and replacement of parts and their availability.

   Some insurers also consider the safety features installed in your car. Installation of ARAI-approved anti-theft devices can further lower your policy premium.

4. Deductibles

   Deductibles refer to a certain claim amount that you need to pay at the time of claim, and the rest of the amount is paid by the insurance company. Once you choose the amount deductible that you will pay, the policy premium automatically reduces. You can also opt for higher deductibles to reduce your car insurance premium price if you can bear a certain percentage of the claim.

5. Location of Car

   The geographical location of your four-wheeler also affects the motor insurance premium. The car insurance provider evaluates the weather pattern, crime rate, traffic, the severity of claims in your area, and the risk it can impose on your car. The higher the risk, the higher the premium and vice versa.

6. Car Usage

   The purpose of using your car will also decide the insurance premium. Whether the insured car will be used for commercial purposes or personal purposes needs to be disclosed to the insurer. Misinformation can also lead to the rejection of claims in the future.

7. Add-on Benefits

   You can also get additional benefits like riders to enhance your car insurance policy coverage. These add-ons include zero depreciation cover, emergency roadside assistance, NCB protection cover, etc. These add-ons come with a nominal cost. Thus, your final car insurance premium slightly increases.

Evaluate Premium Using Car Insurance Premium Calculator

To find the cheapestcar insurance in India, it is a smart option to calculate your car insurance premium online using a car insurance premium calculator. To get an estimate of low-cost car insurance online, you need to submit the following details -

• Year of Manufacturing
• Make and model of the car.
• Car Model Details
• Car's ex-showroom price

The rest of the details will follow.
Last and most importantly, do not forget to compare quotes from car insurance companies from Policybazaar.com before you make the final purchase.