exchange of a lower premium. We recommend not going in for too high an excess. This can be counterproductive in case of an accident.
Insurance discount: Then there are some discounts that the insurance companies offer themselves. The most common amongst these is the no-claim bonus (NCB). If you have not made any claim in the past year, you get an NCB. The good thing about this is that the bonus adds up every successive year. Letís say you didnít make any claim in the first year, you get a discount of around 20% on the basic premium. This figure can go up to 45% if you donít make a claim for four consecutive years.
And it also pays to be careful about the carís security. So, if your car has an ARAI-approved anti-theft device, then you stand to benefit from an additional discount, because then the insurance company deems that your car is less likely to be stolen.
Your profession is also likely to net you some discounts. For example, a public servant is likely to drive the car less than a businessman. Doctors, defence personnel and even teachers in government-owned schools are eligible for this low-risk insurance group. Another discount available is for the members of the regional automobile associations. All these discounts, if you are aware of them, can save you quite a bit of money.
Making a claim: The NCB is by far the biggest discount that the insurance company will give you. The fact that it adds up every year and couple this with the reducing IDV of the car, implies you pay successively less each year for insuring your car. So, claiming may up the premium you pay since you lose your NCB. Of course, you should always practice safe driving, but accidents do happen and making a claim may be the only way out.
But for minor accidents, not making a claim may prove beneficial, especially if there is no mechanical damage. It doesnít cost much to remove a minor scratch using a rubbing compound or beat a minor dent back in shape. Instead, if you claim for