Among insurance products, car or auto insurance is mandatory: you are obliged by law to buy one. Hence one would think that every car owner would have a reasonable level of knowledge about car insurance. In reality, this is not the case. Many policy owners have no clue about auto insurance and often end up paying huge sums of money in the form of policy premiums without getting commensurate benefits.

With so many players in the market, choosing the insurance company whose policy suits you best should be your first priority. This requires a bit of ground work. Do a bit of research on insurance companies regarding the number of consumer complaints and the level of satisfaction with their claim procedure. All companies get complaints. But one would be better off avoiding those against whom there are excessive and repeated complaints. Next, choose a player that has a good track record of service and offers you the best price.

Ways to reduce premium

One way to save money on insurance premium is by shopping around for the least expensive cover. Our studies show that in India there is a wide gap between the most and the least expensive policies. Besides shopping around, there are other ways of reducing the cost of auto insurance. Here we list 10 of the most important ones:

• Car insurance premium increases depending on the number of luxury gadgets you add to your vehicle, like night vision, ultrasound sensors, and so on. Get these gadgets fitted only if you absolutely can’t do without them.

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