Whether you are buying a new or second-hand car, having car insurance is essential. Since we have bad road conditions and constant traffic issues, renewing our insurance policy is mandatory. However, most people may avoid renewing the policy due to rising car insurance premium rates. While the value of your vehicle goes down with each passing year, wondering why your insurance premiums continue to go up? This is simply because an old car is more prone to wear and tear. However, did you know? You could reduce the car insurance renewal cost by having a few tips and tricks up your sleeves.
Here are some tips to reduce your car insurance renewal cost:
Renewing your four wheeler insurance before it expires is one of the simplest ways to reduce the associated costs. As a matter of fact, if you happen to forget to renew the policy before the said interval, you might have to buy a new insurance plan. In other words, you will have to go through the vehicle inspection process and cannot utilise the No Claim Bonus under your car insurance.
Policyholders can get up to 50% of NCB in case they have never made a claim during the policy period. To put it simply, you get a discount on your premiums as a reward for a claim-free year, helping you save money on car insurance renewal.
Generally, when making an online purchase, we search and compare different deals offered by various companies. The same can be done when buying a car insurance policy. Buying a car insurance policy online will allow you to compare different premium rates offered by various providers. Based on the offers, reviews, popularity, claim settlements and other factors, you can then choose a deal that is more suitable to your requirements.
Car insurance offers a predetermined set of benefits to the policyholders. However, it also provides you with the option of customising your plan. So, while picking your add-on covers, avoid opting for the ones you do not need. Every add-on comes with a price tag, which means you will be paying extra for each add-on. However, that doesn’t mean you steer clear of these covers completely. Relevant ones will have you covered under certain situations that are not included in the standard comprehensive plan.
‘Pay as you Drive’ is a new concept introduced in the motor insurance industry. Under this policy, the policyholder charges a premium as per the number of kilometres mentioned in the policy document. So, if you are someone who drives occasionally, this policy could be your best bet.
Did you know? Being a cautious car owner who goes an extra mile to protect their vehicle generally receives additional relief. Yes. If you want to reduce your insurance premium price, you can install anti-theft devices in your four-wheeler. Gadgets like gear locks, anti-theft alarms, steering locks, etc. will enhance the safety of your car and thus, reduce the premium amount.
Modifications like spoilers, alloy wheels, night vision, ultrasonic sensors, and other expensive gadgets can take your premium amounts up. Hence, it is best that you avoid modifying your vehicle in case you want to avail a lower premium. If you still wish to modify your four-wheeler, do not forget to inform your insurance provider.
Deductibles are the small portion of the bill that the insured pays. The remaining bill amount is paid out by your insurance provider. So, the premium amount is decided based on the extent of the bill your insurer will have to pay. In simpler terms, if you set a small voluntary deductible, you will have to pay a higher premium. If the voluntary deductible is higher, the premium would be lower.
Joining associations such as the Automobile Association of India or the Western India Automobile Association can get you special discounts. These associations are recognised by the Motor Vehicles Act and Rules, 1988 and their members are deemed safe drivers.
In India, having motor insurance is mandatory by law. Hence, if your car insurance is about to expire, you might as well renew it online in a few simple steps to stay covered when riding on Indian roads. As a car owner, drive safely and follow the traffic rules. This will bring down the chances of you meeting with an accident, thus reducing the possibility of you raising a claim.
Yes. You can avail a more affordable premium by installing anti-theft devices.
Yes. Modifying your car will increase the insurance premium amount.
Here are a few important add-on covers that you can choose:
Every add-on cover comes with an additional premium amount. If you buy unnecessary add-ons, you will be paying an exorbitant premium.
If you opt for a lower voluntary deductible, you will have to pay a higher premium. Hence, it is best to opt for a deductible that fits into your finances.