Get the most affordable car insurance policy!

By Nirjharini | February 28, 2014
Understanding car insurance

Photo credits : labsji

Ajit always wanted a decent car insurance policy so that he could keep it safe for a long period. However, he got carried away with the lucrative offers from different insurance companies. This is the reason why he ended up losing his investment and time. Most of us pay too much attention to the wayside hoardings that claim to help you save huge bucks on car insurance policies. As an insured, you must understand that these senseless and false claims which hardly come true. Whenever you plan to get a good car insurance deal for yourself, you must understand that what exactly you’re getting into. An accident not only harms your body, but also harms your financial health. One should not just compare different insurance plans available in the market, but should even consider some factors which can help in getting an affordable deal.


Car insurance comparison – how will you benefit from it?

This is the age of advertising and here you must work hard to choose the right car insurance plan. Pay attention to the quotes being offered by different insurance providers. It is crucial to compare the rates offered by different companies so that you are able to get advantages and riders in addition to the policy. As per reports, you can save more than 55 percent of the insurance premium just by comparing the rates. So, act smart while purchasing an auto insurance policy for your dream vehicle. There are 3 major types of car insurance policies available in the market.

  • Comprehensive Coverage
  • Collision coverage
  • Third party liability insurance




The factors that increase your car insurance premium

Having a clean claim history is not the only thing that could help you in finding low cost premium deals. There are several other factors which, if kept under control, can help you decrease the auto insurance premium.

  • LPG/CNG Car
  • Diesel Car
  • RTO Registration and Geography
  • Spare Parts or Imported Cars
  • Frequent Claims and Rash Driving

When people buy a diesel car, they use it more on highways and long routes due to the cost efficiency that it offers. This is where the risk of accidents increases a great deal. Similarly, for LPG and CNG fitted cars, people look for cheaper models which are more risky. So, the cost of premiums automatically goes up and the bank charges a hefty sum of money. A borrower needs to ensure that he buys a policy according to his needs only. Avoid purchasing a diesel car unless and until you have a very tight budget. One must also drive safely and follow all the registration rules to avoid any issue later on. You must go through your credit score offered by CIBIL in order to know where you stand. Keep an eye on the age-wise depreciation schedule offered by the service provider so that you know where exactly you stand as far as getting the claim goes.

Age of the Vehicle ICICI Lombard (% Depreciation) Tata AIG Insurance (% Depreciation) Reliance General Insurance (% Depreciation) Royal Sundaram (% Depreciation) Bharti AXA Insurance (% Depreciation)
Not exceeding six months NIL NIL 5% NIL NIL
Exceeding six months but not exceeding 1 year 5% 5% 15% 5% 5%
Exceeding 1 year but not exceeding 2 years 10% 10% 20% 10% 10%
Exceeding 2 years but not exceeding 3 years 15% 15% 30% 15% 15%
Exceeding 3 years but not exceeding 4 years 25% 25% 40% 25% 25%

As on 21st February, 2014


Checking out some online offers

Whereas everyone is busy shopping for car insurance coverage offline, there are a few smart people who grab the opportunity to buy insurance online. When you apply for car insurance online, you are able to get your hands on several specialized offers and deals that can cut down the overall price of the policy for you. You can easily cross check the policy’s background and the rates being offered to other clients. A comparison which is a must nowadays can be easily carried out on the internet as you have easy access to innumerable online websites which are reliable in terms of comparing insurance deals. Another positive aspect of going online is that there is no middle agent and so you can eliminate the entire cost of hiring an agent. So, check various websites for free quotes and apply for the most affordable insurance deal.


Garage tie-ups

Anyone who visits the garage frequently needs to look for garage tie-up services that might help him find decent premium quotes from an insurer. Some popular garages have tie-ups with insurance companies and act as middlemen to get you the best rates. If you know the garage owner well, you could use his contacts to get an affordable car insurance deal.


Bundle insurance policies

Car insurance policies bundled together can prove to be really economical for individuals looking to save money. You need to find different coverage plans offered by different insurers. For insuring more than one car, you could find multiple plans offered by the same insurance provider.

Auto insurance policies offer various benefits to the individuals who want to keep their vehicle safe for a long period of time. If you want to acquire an affordable deal for a loan as well as insurance for your next car, apply at

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.

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