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How to maximise your motor insurance policy cover?

Team AckoApr 30, 2024

Motor insurance is a must if you own a car, and you’ll be glad that it offers financial protection after an accident. But, nobody wants to overpay for car insurance. Getting that value for your money should be your approach while maximising your motor insurance. Here are some vital tips on how you can maximise your car insurance policy cover without compromising on the extent of the coverage.

Contents

What is an ideal car insurance policy?
Easy ways to maximise your four-wheeler insurance policy cover
In a nutshell
Frequently asked questions

What is an ideal car insurance policy?

An ideal motor insurance policy for your car should offer coverage of not just third party liabilities, but it has to provide financial protection after an accident or in case of theft.

Your basic and most standard approach is to insure your car with the mandatory Third-party Insurance Plan. However, you should opt for the Own Damage cover for broad coverage. Both can be purchased through the Comprehensive Insurance Plan, which also offers the scope of adding add-on covers to strengthen the coverage.

But, how much sum insured should you opt for? Or how can you lower the insurance cost without compromising the sum insured? We answer these questions through informative tips as suggested below.

Easy ways to maximise your four-wheeler insurance policy cover

Here are some essential tips to get the maximum benefit while buying a car insurance policy cover for your vehicle.

1. Shop around

The online platform is an excellent source of information on car insurance plans for your vehicle. You can compare, understand how the premium is determined, read reviews of existing customers, and if they are licenced by the Insurance Regulatory and Development Authority of India (IRDAI).

Whether you are buying insurance for the first time or renewing the plan with another insurer, compare the plans to maximise the coverage for the premium you are paying for the coverage.

Car insurance prices for the same coverage can differ between insurers, so if you don’t shop around, you won’t be able to maximise your savings. Ensure that you compare identical policy inclusions and exclusions to have the right amount of savings.

2. Choose a digital insurance company

Digital insurance companies such as ACKO have revolutionised how you shop for motor insurance. You can insure your car from the comfort of your home. All our services, including policy purchase, raising claims, car insurance renewal, instant policy download, among others, are online.

You can compare car insurance plans, calculate the insurance premium, include valuable add-on covers, and pay the car insurance premium online through net banking, UPI, and other digital payments platforms.

3. Maximum IDV for the same cost

One of the most significant factors that influence the insurance cost is the Insured Declared Value (IDV). It is the sum insured stated in the policy. It is the amount you can claim in case of a total loss or in case of theft. Make sure you select the current market value of your car when you choose the IDV.

Some policies could be low-cost; however, the sum insured can be lower. While you may pay a lower premium, the compensation in case of theft or total loss can be lower than the market value of your car. Ensure you avoid such situations by choosing the correct IDV. You can use ACKO's IDV calculator to calculate the same.

Suppose there are two plans with the same IDV, but the cost differs. You should consider the cheaper plan that offers the same sum insured amount.

4. Take advantage of car insurance discounts

Discounts are offered by insurers during special occasions and festivals. Discounts can be in different forms. It can be a discount in the premium, or you may receive coupons that can be used for different occasions. Ensure you research about car insurance discounts on the internet and then proceed to buy the policy.

But do bear in mind that you must compare different plans based on your requirements and situation. Just because an insurance company is offering several discounts doesn’t mean it provides the lowest car insurance price.

5. Secure the NCB

NCB or No Claim Bonus is a discount you receive for not raising a claim during the policy period. The discount can go up to 50% if you don’t submit claims for five consecutive years. With up to a 50% discount on the Own Damage premium, you maximise your savings without compromising the coverage.

Avoid raising claims for minor damages as you’ll lose your earned NCB. Make sure you submit claims only for significant losses where damage repairs cost a lot. Ensure you drive carefully to avoid raising car insurance claims and save the NCB for maximising your savings.

6. Enhance your plan with add-on covers

While the Comprehensive Insurance Plan is designed to offer financial support in case of damages or losses to your car, it does not cover certain losses. For example, the plan doesn’t cover damages to the engine or the gearbox. Also, it does not cover loss of car keys, protection of the NCB, etc. You can opt from the below-listed car insurance add-ons to further increase the policy's coverage.

Zero Depreciation Cover
Key Replacement Cover
Roadside Assistance Cover
Consumables Cover
Engine Protection Cover
Outstations Emergency Cover
NCB Protection Cover
Return to Invoice Cover
Personal Accident Cover for Passengers

7. Make use of the car insurance premium calculator

The car insurance premium calculator is an online tool to understand how the premium is determined and what factors affect the premium. Enter a few details of your car, such as the year of manufacture, model, and the vehicle's location, and the online tool will calculate the premium for you. Here are some advantages of using the motor insurance premium calculator.

Option of comparing different plans across benefits and cost.
Understand how the premium is calculated.
There is no need to depend on an agent.
Buy car insurance instantly within a few clicks on your internet-enabled smartphone.

Also, read: Can You Have Two Insurance Policies on the Same Car?

In a nutshell

While the car insurance plan should not only be affordable, it should also offer you the flexibility to customise it as per your needs. A Comprehensive Insurance Plan offers you the freedom to include add-on covers, choose the right IDV, and deductibles before deciding on the right plan for your vehicle. Apart from these tips, ensure you choose an insurer who offers robust customer service and faster claim settlement to have a hassle-free experience even after you buy the policy.

Frequently asked questions

Here are some commonly asked questions and answers about car insurance policy coverage.

What is deductible in car insurance and how does it impact the insurance price?

A deductible in your car insurance is a portion of your claim settlement that you need to pay from your pocket. There is a compulsory and voluntary deductible. As for the voluntary deductible, the higher the deductible the lower the premium; however, your claim settlement will be lower since you have to bear the voluntary deductible.

Will I get a discount on the insurance premium if I instal an anti-theft device in my car?

Yes, you may get a discount if you have installed an Automotive Research Association of India (ARAI) approved anti-theft device on your vehicle. However, it is best to check with the insurer for the provision of a discount.

What is a multi-year car insurance policy and how does it impact the premium?

Multi-year car insurance policies are policies that come with a 1-year third party car insurance and 3-year Own Damage cover. Since you are paying upfront for the next 3 to 5 years, the premium is usually lower than a short-term or annual car insurance policy.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.