Is it possible to save money from car insurance. The insurance premium is the amount that we need to pay to cover any sudden accidents and damages to vehicle. So the Insurance premium is the amount what the Insurance company says to pay. Then how is it possible to reduce the insurance cost and save money?
The Insurance premium can be divided as two heads as Third Party claim and own damage. The third party insurance means the claim that is to be covered when any damage caused to a third person with our vehicle. And the own damage insurance is for the damage caused for our self vehicle.
For the own damage premium portion of our insurance premium, we can avail a no claim bonus, if we haven’t make any claim after the insurance has taken. The maximum no claim bonus is 50%. The main thing we must keep in mind that, the no claim bonus is not available to the vehicle, it is available for the owner of the vehicle. Because, if a vehicle does not met with an accident, then it does not mean that it is the ability of the vehicle to keep away from accident, but it is the ability of the owner who keeps away the vehicle from any accidents.
Suppose the insurance premium of a vehicle which is bought recently is rupees 34000. In this amount about 4000 is for third party insurance premium and the rest 30000 is own damage insurance premium.
|Actual Insurance Amount||34000|
|less Insurance for third party||4000|
|insurance premium for own damage||30000|
|less No Claim bonus of 50%||15000|
|Insurance Payable for own damage
|add Insurance for third party||4000|
Here the insurance to be paid is only 19000 instead of 34000. In addition to this about a 45% of Special discount will be received for no claim bonus, then the amount to be paid as insurance is only about 13000.
NB:- For claiming no claim bonus, the owner must have a no claim certificate from the company and which will have a validity of 3 years.