When you are looking at a motor insurance policy either for your car or two-wheeler, you should know that your policy has two components- Own damage and third party. Depending on these two components the premium that you pay also has two parts for each components of your insurance cover.
Now when we are talking about saving money on your premium we should keep in mind that only the own damage premium part is under your control because the third party premium is prefixed by the regulator so it is same for all plans offered by various insurance providers.
Few are some of the smart ways to keep a control on the cost that you pay for own damage insurance:
Try to keep No claim bonus intact: This is a type of discount which you as a policy holder can avail while renewing your policy and is given to you by the insurance provider because you have not made any claims in the year preceding the current year. It is always advised if the cost that you need to bear for repair of your car or two-wheeler is less than the savings that you would earn on renewal premium because of NCB it is not favorable to make a claim. If for example, the motor own damage premium is Rs.12000 and you are entitled of 35% NCB (Rs.3850) it would make more monetary sense not to make a claim if your repair cost is less than Rs.3850.
The other way to keep your NCB intact is by applying for add on cover for NCB protection. Though you might need to pay a bit of extra premium but it is always a valuable proposition. Say for instance, your accumulated NCB is 40% and you filed a claim, the add on covers ensures that your NCB doesn’t become NIL at the time of renewal and reinstates it at 30%.
Get your motor always repaired in a network garage: Every insurance company has its own network of garages where you can get cash less repair. The network garages always offer services at a cheaper rates compared to your local shop. A lower cost of repair means a lower depreciation value of your car or two-wheeler.
Opt for Long term motor insurance policy: Generally this is a feature is available for two-wheeler policies where you can opt for policy term of two to three years with free road side assistance. A longer duration policy is always cheaper compared to buying individual motor insurance policies each year. The best part of long term policy is that the third party insurance premium and the service tax hikes would not affect the premium of the policy.
Avail for voluntary deductible: A voluntary deductible means that you as a policy holder commit to pay a part of the claim whenever the situation of claim arises. The part of claims that you promise to pay decides the cost for the rest of the cover. If you opt for an option like this cost of cover is always less than a regular policy.
Other than these it is always advised not to raise claims in case of small damages. Your prudent decision to always take your car or bike to a network garage can also help you get a negotiated cost on repair which is generally 20% lower than your local garage. Prudent and smart strategies can always help you keep the premium down so that it doesn’t affect your pocket.