Cheap Car Insurance Online
How Do You Define a Cheap Car Insurance Policy?
What comes to your mind when someone mentions cheap car insurance? The most common answer is perhaps that a cheap car insurance policy carries a low amount of premium. Whilst the notion of a cheap car insurance policy may sound financially lucrative, the truth is that it is not so.
Buying a cheap car insurance policy may help you reduce your car insurance premium obligations, but on the flip side, it would also mean quoting a lower Insured Declared Value (IDV) for your car, which would result in a reduction in the sum assured in the policy. Therefore, you may end up having to contend with inadequate coverage for your car in the pursuit of small savings.
Remember that your car insurance policy must provide adequate coverage to your car against various types of adverse events. So why settle for a less than optimal car insurance coverage to save a little money in premium payments?! Therefore, if you plan to buy cheap car insurance online, it is advisable to look for "cost-effective" car insurance that offers the most value for your money.
Factors that Determine Your Car Insurance Price
There are several factors that have a bearing on your car insurance price. Here are some of these factors:
Car Age and Coverage
The age of your car is an important factor in the determination of your car insurance price. This is because new cars have a higher Insured Declared Value (IDV) as compared to old ones. Therefore, the car insurance premium calculated as per the vehicle's IDV shall be higher for new cars than old ones. Furthermore, since the components of new cars can be hard to replace, their car insurance rates tend to be high.
The Type of Coverage
Another significant factor that drives the magnitude of your car insurance price is the type of coverage you opt for. Select a comprehensive car insurance policy. You may have to pay a higher premium than for, say, a third-party liability insurance policy or a standalone own-damage insurance plan. However, despite a higher cost, it is recommended to opt for a comprehensive car insurance policy for your car.
Type of the Car and its Features
The higher the cost and technical features of your car, the higher is the corresponding car insurance price. This is why high-end cars, including luxury cars and sports cars, usually have a higher car insurance premium than low and medium-budget cars with basic specifications. The lack of sufficient availability of the parts of high-end cars also drives a rise in their premium. However, it is important to note that the installation of safety features can help you get a lower car insurance rate. If you install any safety equipment, for instance, an anti-theft device, to your car, it becomes safer and less prone to theft. Therefore, the corresponding car insurance price shall get reduced.
Your car insurance deductible is the part of the claim you have to pay out of your pocket. The deductible for your car insurance plan is determined at the time of the purchase of the policy. As a general rule, the higher the deductible, the lower is the car insurance price.
Instead of looking for the cheapest car insurance in India, you must prioritise car insurance plans that offer adequate coverage at a feasible price. Keep in mind the fact that the cheapest car insurance may not be the best car insurance.
The Selected Add-on Benefits
There are several car insurance add-ons that you can select to enhance your car insurance policy coverage. These add-on features include a Zero Depreciation cover, consumables expenses, etc., enabling you to have a higher degree of financial protection for your car. However, since each add-on carries a specific cost, their inclusion in your car insurance policy leads to an increase in the car insurance price.
Although it is tempting to opt for cheap car insurance, it is advisable to select a car insurance policy that provides sufficient protection in alignment with your specific car insurance requirements.
Other Factors that Determine Your Car Insurance Price
Some of the other factors that determine your car insurance price have been discussed below.
- Geographical Location
The geographical location you live in is also a critical factor in determining your car insurance price. If you live in a place that has uneven terrain and is prone to accidents, the car insurance rates for cars to be primarily driven in that region shall be high.
Similarly, areas with heavy and low constant rainfall tend to have high car insurance rates. Furthermore, if the area you live in has a high incidence of crime, including theft, you are likely to have a higher car insurance rate than, say, a person who lives in a relatively low-crime area.
- The Usage of the Car
The purpose for which your car shall be used is also a key determinant of its car insurance price. Therefore, the car insurance rates of commercial vehicles and passenger vehicles are different. Therefore, it is important to declare the intended use of your car while purchasing a car insurance policy.
- Your Car Insurance Claim History
If you have a history of frequent car insurance claims, it reflects poor driving, non-compliance to traffic rules, or a combination of the two, leading to an increase in your car insurance price. Since a high incidence of car insurance claims makes you a high-risk customer for car insurance companies, the corresponding car insurance premium would increase.
Another drawback of a high frequency of car insurance claims is that you miss out on earning a No Claim Bonus (NCB) on your policy which is a reward that insurance companies provide to policyholders who do not make any car insurance claims within a policy year. With an NCB, you can claim a discount of 20 per cent on the premium of your car insurance policy during its renewal.
Furthermore, suppose you make a car insurance claim in a policy year after accumulating an NCB in your car insurance policy during the preceding year. In that case, you lose that accumulated NCB and have to start your NCB qualification afresh.
Pitfalls of Buying Cheap Car Insurance
If you are researching the cheapest car insurance in India, take a moment to consider the many pitfalls of buying cheap car insurance. Some of these pitfalls are:
- Inadequate Coverage
As a broad concept, a cheap car insurance policy may sound like an advantageous product, one that provides financial protection to your car at a feasible price. However, logic dictates that every product that carries any value or adds value for a customer has an equivalent price. Therefore, if you think about it, cheap car insurance is a marketing gimmick designed to present a facade of a decent product.
The coverage provided by cheap car insurance policies is limited and insufficient and may not suffice should you need to file a car insurance accident claim. If you fall for marketing campaigns that play around the themes of cheapest car insurance in India, you may find yourself facing a financial predicament while filing your car insurance claim. Hence you must consider the coverage of a car insurance plan in addition to its price before selecting it.
- Lack of Add-on Covers
One of the drawbacks of buying a cheap car insurance policy is that it offers a basic car insurance cover with no add-on benefits. However, the importance of car insurance add-ons such as Roadside Assistance, Zero Depreciation, etc., cannot be overstated since they enhance your car's insurance coverage to a significant degree.
Furthermore, if you forget to include a particular add-on while purchasing your car insurance plan, you can include it during the policy renewal. However, this is not true in a cheap car insurance renewal as such plans offer no add-ons.
- High Deductible
If you opt for a cheap car insurance policy, there are high chances that you end up with a high deductible. As mentioned above, a deductible in car insurance is the amount of a car insurance claim that you need to bear yourself. Since the main selling point of cheap car insurance policies is a low amount of premium, they have a high deductible.
By buying cheap car insurance, not only do you settle for a high deductible but also get inadequate coverage for your car. In the event of your filing a car insurance claim, you will have to pay a substantial proportion of the sum from your pocket. What is more, is that the sum paid by the insurer through the claim will be quite low.
Want to Lower Your Car Insurance Premium Rates? Look This Way!
Rather than looking for a cheap car insurance policy that is likely to end up being anything but cheap in the event of you filing a car insurance claim, it is better to reduce the premium of a regular car insurance policy.
Here are some tips to help you reduce your car insurance premium.
- Choose the Insurance Coverage Wisely
Always select your car insurance policy only as per the protection your car needs. A basic third party car insurance is very affordable when compared to an own damage cover or a comprehensive policy. Therefore, the premiums you pay only to protect your car from third-party damages will be quite low.
However, comprehensive car insurance can also be cost-effective if you choose the Insured Declared Value of your car correctly. Hence, by choosing an appropriate IDV, you can pay reasonable premiums in return for extensive coverage for your car.
- Opt-Out of Coverages That You Don't Need
While selecting car insurance add-ons, it is easy to get carried away and select some benefits that you probably do not need or will end up never availing of. Therefore, it is important to remember that each car insurance add-on has a price attached to it that drives an increase in your overall car insurance price.
There is no point in paying for benefits that are not necessary for your car. Hence it is advisable to choose only the add-ons that you deem are required for your car so that you establish a substantial balance between your car insurance premium and the coverage provided by the policy.
- Avoid Making Minor Claims
Remember to be extremely careful about how you use your car insurance policy, particularly with regard to claims. Suppose you file a car insurance claim for every minor damage sustained by your car. In that case, you will not be able to accumulate a No-Claim Bonus on your car insurance policy which can help you get a reduced car insurance rate during the policy renewal.
Therefore, you must refrain from filing car insurance claims for minor damages such as a broken rearview mirror or a scratch on the car's number plate.
- Install Safety Features in Your Car
One of the easiest ways to reduce your car insurance premium without having to resort to a cheap car insurance policy is by installing certain safety devices in the vehicle. By taking the path of prevention is better than cure, you qualify as a low-risk customer, which can help you get a reduction on your car insurance price.
There are several safety features that you can install in your car to make it safer, including anti-theft devices and airbags. These features help keep you and your car safe whilst sparing you from looking for cheap car insurance quotes.
- Stay Away from Making Car Modifications
If you opt for any modifications to your car that enhance its aesthetic appeal, you will likely have to shell out a larger sum by car insurance premiums. Since modifications such as alloy wheels are expensive, so is their inclusion in the coverage of a car insurance plan. Therefore, you must refrain from the addition of any such equipment to your car.
- Choose a Deductible That You Can Pay Easily
Selecting the adequate deductible for your car insurance policy is akin to walking a dangerous tightrope. If you opt for a low deductible, your car insurance premium ends up being high, whereas a high deductible would mean that you will have to bear a high percentage of any financial losses pertaining to your car in the event of a total loss event.
Therefore, you need to consider your financial situation carefully and the car insurance coverage you require before determining your car insurance deductible.
Key Benefits of Car Insurance
There are several benefits of buying four wheeler insurance for your car. Some of the key benefits of a car insurance policy are:
- Buy Policy Online
There are several advantages to buying car insurance online. Firstly, you can save up to 75 per cent on the policy's premium if you buy car insurance online. Secondly, you need not spend hours in queues in the office of a car insurance company, awaiting your turn for policy purchase or renewal. You can purchase or renew your car insurance policies online from the comfort of your home or office and select a plan that aligns with your car insurance requirements.
- Customisation With Add-on Covers
A majority of car insurance companies offer beneficial add-ons with their car insurance policies which can enhance the coverage of said policies. The customisation option of your car insurance policy allows you to convert a basic policy into one that can cater to your specific car insurance needs. It is, however, important to be careful with the selection of car insurance add-ons since each add-on has an additional cost associated with it.
- Wide Network of Cashless Garages
The leading insurance providers in India have a significant network of cashless garages across the country, enabling their policyholders to avail themselves of the facility of cashless repairs for their cars on a priority basis. In case of any damage, you simply need to take the car to a network garage of your insurance provider, and they will take care of the car insurance claim and settle the bill directly with the garage. You only have to pay your deductible amount.
- Easy Claims Process
If you opt for a trusted car insurance company, you will receive excellent customer service and customer-oriented processes, particularly in the claims process. With the facility of an online claims process provided by several insurers, you can file your car insurance claims online and be assured of a swift and satisfying claims process. Furthermore, you can reach out to the customer support team of your insurance provider should you need any assistance to file your car insurance claim.
- Security of Your Four Wheeler
With comprehensive car insurance policies offered by India's leading insurers, you can get extensive coverage for your four-wheeler. These comprehensive policies include a mandatory third-party liability cover, a standalone own-damage car insurance cover and a personal accident cover. This gives you complete financial protection against the loss of your car due to theft, fire, natural or man-made disasters.
- Claim Settlement Ratio
Opting for a car insurance company with a high claim settlement ratio holds you in good stead should you need to file a car insurance claim. Actions speak louder than words, and an insurer's claim settlement ratios over the preceding few years bear testimony to their commitment to customer service.
What Is Covered In A Comprehensive Car Insurance Policy?
A comprehensive four wheeler insurance policy offers you extensive car insurance coverage against multiple circumstances that could cause damages to you, your car, and any affected third party.
By purchasing a comprehensive car insurance policy, you get financial protection in the event of:
- Theft of the Car
If your car gets stolen, a comprehensive car insurance policy has got you covered. If you choose this policy, your insurer shall provide you with the Insured Declared Value or the market value of your car in the unfortunate event of the vehicle's theft. Furthermore, if there is complete and irreversible damage to your car owing to an accident, the car's IDV shall be reimbursed to you.
- Damages to the Car due to Natural Disasters
Most comprehensive four wheeler insurance policies and standalone own-damage policies provide you complete financial protection against the damages caused by natural disasters such as floods, earthquakes, cyclones, snowfall, etc.
- Damages to the Car due to Man-made Calamities and Fire
If your car sustains any damages as a result of man-made calamities such as riots, strikes, and acts of terrorism, a comprehensive car insurance policy and a standalone own-damage policy shall come to your rescue. With these car insurance policies, you can have financial protection against various man-made disasters.
- Damages Caused to the Car by an Accident
An accident may leave your car damaged to a minor or major extent, but with a standalone own damage and comprehensive car insurance policy, the resultant repair expenses shall be reimbursed to you.
- Damages Incurred in Transit
There may be times when you may have to move your car from one place to another, in which case it may suffer some damage. With a comprehensive car insurance policy, you shall be financially protected against the damages caused to your car in transit.
- Third-Party Liability Cover
A comprehensive four wheeler insurance policy and a third-party car insurance policy provide financial and legal protection to you against any third-party damages, including those caused to a third-party person or third-party property. This coverage includes the financial and legal liabilities arising out of the death of a third party due to an accident involving the insured car.
- Personal Accident Cover
With comprehensive car insurance policies, the owner-driver of a car gets a personal accident cover. This cover comprises the reimbursement of emergency medical expenses required to treat the injuries caused by accidents involving the insured car.
The cost of transporting the owner-driver to the hospital is also usually included in this coverage. Under comprehensive car policies, in the unfortunate event of the demise of the owner-driver owing to the accident, their appointed beneficiary shall receive the sum assured under the policy.
- Targeted Coverage With a List of excellent Car Insurance Add-ons
India's leading car insurance companies offer some excellent car insurance add-ons that have been designed whilst keeping your varied car insurance needs in mind. With a wide selection of add-on covers, ranging from a zero depreciation cover to roadside assistance, from emergency transport and hotel expenses to engine security, you can easily customise your car insurance policy in alignment with your insurance requirements and financial capability.
Instead of looking for a cheap car insurance policy, you must carefully ascertain your car insurance requirements and opt for a plan that offers sufficient coverage at a feasible premium. Remember to include the necessary car insurance add-ons to enhance the coverage of your car insurance policy.
With a comprehensive car insurance policy, you can get extensive coverage for your car. It is important to note certain factors in mind whilst choosing a car insurance policy. These include the extent of the coverage, the availability of adequate car insurance add-ons, the claim settlement ratio of the selected insurer, with their customer reviews and market reputation. Rather than looking for a cheap car insurance policy, you should opt for a plan that offers adequate coverage for your car. Choose well and stay safe!
Frequently Asked Question
How can you compare car insurance policies effectively?
Comparing car insurance online is an effective way to carry out the process. When you compare car insurance or buy it online, you save time, money and effort.
Tata AIG offers a simple three-step process for helping you compare car insurance online. All you need to do is fill in some details of your car as well as your contact details to get car insurance quotes, which you can compare and then choose the one that is most appropriate for you.
How does comparing car insurance help to save money on your premium payment?
Comparing car insurance online before buying it helps you avail of various discounts offered by different insurance providers. An expensive policy does not always guarantee extensive coverage. When you compare different car insurance benefits, you can choose a policy that covers your needs while keeping the premium payment affordable.
Are add-on covers available for third-party liability-only policies?
No, Tata AIG’s stand-alone third-party car insurance policy does not offer the benefits of including add-on covers to the plan. A third-party car insurance policy can only cover third-party liabilities such as damage to another vehicle or injuries to or death of another person caused by the insured car.
What are the tax benefits on motor insurance?
Yes, you can claim a tax deduction on your car insurance premium. However, for the tax benefit to be applicable, it is necessary that the car covered under the insurance policy should be used for business purposes apart from personal use, if at all. You can compare motor insurance online to understand tax benefits offered by different plans.
How to make a claim in car insurance?
As a Tata AIG car insurance policyholder, these are a few simple steps to file a claim:
Step 1– You can visit our Claims Support page and fill out the required information or contact us on 1800-266-7780. We will send you a link for self-inspection of your car on your mobile number once we receive your claim request.
Step 2– Use the self-inspection form to fill in the details of the damages to the car. One of our surveyors will also examine your car and the damages.
Step 3– You can choose to be reimbursed for the damages after you make the payment for the repairs or choose our cashless claim facility through our network garages.
Step 4– The completed claim form, an FIR (if needed), identity proof, policy documents, address proofs, etc., are needed for claim settlement. Keep them ready before filing the claim.
Step 5– Once you fill the claim form, you can track the claim status and the transaction process online on our website.
Step 6– If your claim meets our guidelines on verification, we will approve the claim and process the settlement.
How do I purchase a car insurance policy?
Tata AIG makes it easy for you to purchase your car insurance policy in three easy steps:
Step 1 – Visit our car insurance page, fill in your car’s registration number and click on “Get Price”. Step 2 – On the next page, provide your car’s brand, name, variant and then click “Continue” to move to the next page. Step 3 – On the last page, mention the month and year of the car’s purchase along with your mobile number. If you have purchased a policy previously, it is necessary to fill in those details too.
Once you get the car insurance quote of your choice, you can make the purchase.