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How Accidents Affect Your Car Insurance Premium

Being a good driver doesn't mean that your car is always safe and secure from car accidents. The reason behind the accident is unpredictable factors such as other drivers on the road. Some of them might have a bad day and accidentally they run into your car. There are many other possibilities fora car accident. For example, there is a possibility of coming a bikers from nowhere and force you to bang your car into divider because being a good driver you must save the biker as well.

To safeguard yourself from all these unforeseen expenditures, you need to buy car i​​nsurance. It is available with almost all insurance companies at different premium amounts. You need to search for the best one with a minimum premium amount that meets with your pocket as well as your needs.

A premium rises a little bit when the insurer files the application for the claim. Here we would learn what how an accident affects the rise in the insurance premium.

How does accident impact premium?


Claiming after an accident will give a dent in your insurance profile and turn your premium amount increases. If you're filling claims frequently, your profile will be flagged as 'risky profile' and the premium amount will increase rapidly. On the other hand, if you do not raise the claim, the insurance premium is unlikely to increase. Until the insurance company wants to inspect your car before insuring the vehicle.

Reasons for the increase in premium


Premium loading


If someone has a history of raising frequent claims, the more premium amount will be charged from the person and it is termed as loading.

No claim bonus


If you have raised regular claims then you'll miss on no claim bonus, which is an additional discount of policy renewal.

Ways to reduce your car insurance premium

  1. Try to avoid raising frequent claims, if the damage can be rectified at a lower cost.
  2. Choose for no claim bonus protect cover which is an add-on cover that almost all the companies are providing.
  3. Use an anti-theft security system certified by Automotive Research Association of India (ARAI) in the car to reduce in premium amount and protect your vehicle from thefts, which further reduces the chance of raising a claim.
  4. You can choose voluntary deductible while renewing the can insurance policy. This means that you're going bear the financial loss if the insured car faces and damage. In this situation, the insurance company will provide a lesser amount as a claim settlement.
  5. The last option to save on premium amount is buying car insurance online, as there islot of discount options available on digital platforms.

People looking for car insurance can visit multiple sites to check the premium amount. Also, they can use portals to compare the companies offering car insurance at a lesser premium with extra offers to fulfill the needs of customers. Apart from this, car insurance is mandatory as per law as well as required to keep your vehicle safe. It provides both financial and mental security to the owner of a car.