HomePersonal Finance NewsLocked up your vehicle due to COVID-19? Here’s how to save on insurance premiums

Locked up your vehicle due to COVID-19? Here’s how to save on insurance premiums

The COVID-19 pandemic has altered the lives of people in more than ways one could have imagined.

By Anshul  May 5, 2021, 4:46:18 PM IST (Updated)

The COVID-19 pandemic has altered the lives of people in more than ways one could have imagined. A standout development is that a lot of employees and professionals are now working from home and using their vehicles relatively lesser than pre-pandemic days. While the usage of private vehicles has come down sharply, there has been no respite from maintenance and insurance premiums which have risen invariably.

There is a way out, however, says Utpal Raman Sharma, Head - Car Insurance of Policybazaar. He suggests customers to buy only the coverage that is required. Given the current circumstances, several insurers have devised a unique insurance policy – Third-party + Fire + Theft insurance.

The plan, Sharma says, provides vehicle-required coverage at a low cost which can be 50 percent less than regular comprehensive plans. This plan provides adequate coverage for damages to third parties as well as damages to the vehicle caused by fire and theft.

“Theft and fire accidents are real and occur frequently. It is preferable to be prepared for any unforeseen event than to experience the shock of life when the car is damaged by fire or stolen,” Sharma states.

Also read: Applying for COVID health insurance claim settlement? Check the list of main documents

These plans, as per Policybazaar, are expected to be beneficial to the salaried class of people who work from home and only leave their homes in an emergency.

Insurance is one of the most important and costlier aspects of owning a car, with the average cost of a fully comprehensive motor insurance policy for a 1200CC sedan car ranging between Rs 15,000 and Rs 18,000. So, it makes sense to go for this unique plan when driving is not that frequent.

Sharma advises individuals to cover the vehicle under a TP + Fire + Theft Insurance Cover (rather than a Third Party Only Plan), which guarantees the necessary protection against potential vehicle damage. Furthermore, when compared to comprehensive plans, these plans can easily save policyholders a significant amount of money.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.