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Car Insurance Premium Payment 

For anyone who owns a four-wheeler, buying an insurance policy is compulsory under the Motor Vehicle Act of 1988. However, buying a four-wheeler in itself is an expensive affair. In fact, some people take loans to buy cars or two-wheelers. For them, the added expense of buying four-wheeler insurance can put a considerable strain on their finances. To overcome this issue, some insurance providers offer flexible options of paying their car insurance premiums annually or in partial monthly payments. However, while some might opt for partial payment as the easier way, others might prefer the advantage of hassle-free full payment once and for all.

 

So, how do you decide which payment method is better? Let us look at the advantages and disadvantages of both these payment options to gain some perspective.

Paying for Car Insurance Annually 

Paying for car insurance annually is a good choice for those who do not have access to large amounts of disposable funds. Annual premium payment is generally cheaper than paying for it in monthly instalments. Let’s analyse the pros and cons of buying car insurance annually:

Pros of Paying Car Insurance Premiums Annually 

  • Paying in full leads to considerable savings as compared to making monthly payments on your car insurance policy.
  • The policyholder need not worry every month about making the payments or the car insurance plan getting lapsed.

Cons of Paying Car Insurance Premiums Annually 

  • A major downfall of making a full payment on your car insurance is that it becomes problematic to terminate your insurance policy or switch insurance providers during the policy’s tenure.
  • Even if you do change your insurance provider, the time required to reimburse your remaining monthly premiums could get prolonged.

Paying for Car Insurance in Monthly Instalments 

Paying for car insurance in monthly instalments is a good choice for those who are on a budget. Moreover, it allows car owners to be flexible as they can switch between insurance providers more easily. Let’s take a look at the pros and cons of paying for car insurance monthly: 

Pros of Paying for Car Insurance Monthly 

  • Paying in instalments or getting car insurance on EMI helps plan your budget better.
  • Monthly instalments of your car insurance premium help keep a track of your policy’s ongoing status.
  • Paying monthly instalments can help improve your credit score.

Cons of Paying for Car Insurance Monthly

  • Most insurance providers charge certain processing fees on making monthly premium payments on a car insurance plan.
  • Along with the monthly instalments, some insurance providers may also ask you to pay interest on the premiums.

Ways to Save on Car Insurance Premiums 

Buying car insurance is a mandatory cost that all car owners have to incur, but there are some tips that you can use to save money on your insurance premiums. Let’s take a look at them below: 

 

  • You can save on your car insurance premium costs by using your No Claim Bonus (NCB). NCB is awarded to those policyholders who do not make claims during a policy term and can be used to get reduced premiums during insurance renewals. 
  • If you have purchased multiple add-on covers, you should get rid of them during car insurance renewal. While single add-on covers don’t cost too much, multiple covers put together can significantly increase your insurance premiums. 
  • If you choose to opt-in for a higher percentage of voluntary deductibles, your insurance provider will reduce your premium rates. 
  • Maintaining your vehicle properly and keeping a clean driving record will also help you keep your insurance premium costs down in the long run. 
  • You can also get a discount on your car insurance premiums by installing an ARAI-approved anti-theft device on your car. 

Conclusion

As you can see from the above details, both full and monthly payments on your car insurance have their own share of advantages and disadvantages. Ultimately, it all boils down to your personal preferences. Before you make your choice, make sure you consider your financial situation. Although full payments on your insurance can save a lot on your premium amount, for some policyholders, making monthly payments can offer more convenience. So, while you make your choice when buying car insurance, you can check out the car insurance plans available on Bajaj MARKETS. 

FAQs on Car Insurance Premiums Payments

  • ✔️How can I check the car insurance premiums online?

    You can use the ‘Car Insurance Premium Calculator’ to get an estimate on premium costs for your car.

  • ✔️When should I pay for car insurance premiums annually?

    You should pay for car insurance premiums annually if you have access to large disposable funds. 

  • ✔️When should I choose monthly payments for car insurance premiums?

     You should choose monthly car insurance premium payments if you have a tight budget and cannot spend all of it in one go. 

  • ✔️Are there any other options for insurance premium payments apart from yearly or monthly?

    Yes, some insurance companies also offer the choice of quarterly or semi-annual premium payments to their policyholders.

  • ✔️Can I buy car insurance with annual payments online? 

    Yes, you can buy car insurance plans that offer annual payment options on Bajaj MARKETS and other insurance websites.