Generally, plans offered by general insurance providers can be broadly classified into two categories:-
This plan usually covers damage to property, accidental death, and injury to a third party. Third party insurance plan is also a mandatory requirement for all vehicles plying on public roads in India.
This usually is a preferred option by many as it covers for both ‘own damage’ and legal liability of the third party. It also covers theft or damage caused by unforeseen perils like cyclone, earthquake, fire explosion etc.
Deductibles or excesses are the amounts over and above which a claim is payable by an insurance provider. If you are willing to settle petty claims for small damages from your pocket voluntarily, then the cost of the premium for vehicle insurance can be reduced approximately by thirty percent.
You can reduce the premium payout by nearly fifty percent every year if you don’t claim insurance on your vehicle. Insurance companies give the benefit of no claim bonus as a record of your good driving year after year. If you sell your vehicle, this no-claim bonus can be transferred to your new insurance policy for the new vehicle and avail lower premium payout.
Few cars come with enhanced security systems which are built-in such as anti-theft alarms and immobilizers. There is a low probability of theft of such cars. These cars can be insured for less premium. However, only Automotive Research Association of India (ARAI) approved devices will attract a 2.5 percent discount on your premium.
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