Categories Finance

4 Reasons Why You Might Be Paying a Higher Car Insurance Premium

When you purchase a

Jaguar I-Pace Personal Lease, it becomes essential to buy car insurance policy along with it as it is mandatory in India. While buying a car insurance, there is a chance that you are paying more premium than you should. Therefore, you should always go through your car insurance policy.

There might be specific reasons that you’re paying a higher car insurance premium; here are a few:

  1. Your car insurance does not meet your purpose

Most of the individuals buy car insurance policy only because it is mandatory by law. Avoid doing that; instead, buy a car insurance policy that can be customized according to your requirements. Sometimes, the car dealer suggests you take up some cover you don’t have complete knowledge about while purchasing the car. This might lead to paying high premiums. In order to avoid this, make a list of your requirements by simply asking yourself questions like:

If the answer is yes, then go for a Passenger add-on.

  • Do I live in an area that is flood-prone?

If yes, purchase an Engine Protection add-on.

  1. Extra add-on covers

Add-ons are very beneficial, but buying extra ones can lead to an increase in the cost of your car insurance policy. Do not purchase unnecessary add-ons that you might never use.

Cut down on the add-ons you do not require by reviewing your car insurance policy. You can review and opt for add-on covers such as Zero Depreciation, Roadside Assistance, or Invoice Protection Cover, as required.

  1. You are filing claims for minor damages

A comprehensive car insurance policy helps in financially protecting your car in case of any damages caused to them. It is the insurer who bears the repairing cost in situations like these. If you raise no claim against your insurance policy, you will be given a concession on the premium at the time of car insurance renewal.

The No Claim Bonus (NCB) increases with every consecutive year where you make no claims. It can reach up to 50% on the cost of your car insurance policy. Therefore, do not make claims for small damages that can be repaired easily by you.

  1. Incorrect IDV

The Insured Declared Value (IDV) is basically the approximate market value of your car. When buying a comprehensive car insurance policy, you must set the correct IDV for your car because it is considered to be one of the main factors when it comes to determining the cost of your car insurance policy. While buying or even renewing the insurance policy, you will have to set the amount that is approximately equal to the present market value of your car.

If you wish to reduce the cost of your car insurance policy, you must consider the factors mentioned above. Read the terms and conditions thoroughly before you make any purchase. Also, to avoid paying high car insurance premiums, you can compare various car insurance policies online by calculating its premium using the car insurance calculator. Like this, you can choose the best car insurance policy at a low premium cost that best suits your needs.