According to N Eswaranatarajan, head, motor insurance, ICICI Lombard General Insurance, "While car insurance premiums have come down by at least 30 per cent, two-wheelers and commercial vehicles have seen a 20 per cent drop."
For instance, in March 2007, the premium for a Honda City was Rs 20,760 in Mumbai. But this year it has fallen to Rs 15,770 - a difference of Rs 4,990.
The crash in premium speaks volumes about the cut-throat competition prevailing in the motor insurance market. Sample this: ICICI Lombard is insuring a Tata Indica for Rs 11,724, whereas National Insurance Company is offering insurance for the same vehicle at Rs 8,048 - a clear differential of Rs 3,531 or 43 per cent. "This is because ICICI Lombard gets more claims for Tata Indica," explained Eswaranatarajan. For those who have bought a new car or whose policy is coming for renewal, a substantially lower premium is one relief that they can look forward to.
Bag the best deal
The easiest way to get the best policy is to call up a few insurance companies' helplines. The representatives will give you the premium upfront after taking down details of the year of car purchase, company and model.
Another way of bagging the best deal is visiting online insurance portals where you could find a ready-reckoner that compares the premiums. Sites like apnainsurane.com and click2insure.com could prove to be useful. To get the best deal, do the following:
If you have a good no-claims history, there is good case for you to command hefty discounts. This is called 'no-claims bonus'.
"This discount can go as high as 50 per cent, depending on the renewal year and age of the car," said an online insurance portal official.
Unity is strength
Members of automobile associations, such as The Western India Automobile Association or Automotive Association of Southern India, get good discounts.
These associations of vehicle owners provide car and bike owners all possible services, from issuing licenses to breakdown services.
Discount tips
Installation of anti-theft devices, approved by the Automotive Research Association of India, in the vehicle also leads to a discount of Rs 500. Car owners are also entitled to a discount if they opt for bearing part of any claims made in earlier years.
For instance, if an accident claim amount is Rs 10,000, and the car owner part-pays Rs 5,000, he would be entitled to a discount when the policy is renewed. "If someone can bargain right in this market, there are opportunities galore to make hay," said insurance broker Pradip Agarwal.
Also, if you approach the company directly and not through any intermediary, there are chances of getting a good 10 per cent more discount.
Food for thought
However, while going for the discount, do not compromise on the cover per se. For instance, insurance companies also offer to cover passengers and a paid driver for a little extra amount. Make sure you get the best discount and also the maximum amount of cover.
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