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Ten Commandments of the Wise to Save More on Car Insurance Premium

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Published on March 17, 2021. EST READ TIME: 3 minutes

Buying a car insurance policy is a routine, but a necessary affair. Many people do it because it is a legal need. But it is also a great financial decision. Below are ten wise tips to get the best deals on car insurance renewal.

1. Buy car insurance online to get great deals on your premium. When you buy car insurance online, you have an option of comparing insurance policies and opting for the one best suited for you. Depending on your need, you can include or exclude add-ons to your policy as well. Our word of advice is that when in doubt, a car insurance premium calculator comes in handy to figure out how much you will have to pay. An additional plus of purchasing online is that you can secure car insurance policy in no time!

2. Renew in time to avoid inspection and other fees connected with expired policies. In the hustle of life, many tend to forget their car insurance renewal. While it may not seem grave, but an expired car insurance policy can be financially detrimental. Not only you may be levied inspection charges on the next renewal, but in case you are caught driving an insured car, you may have to shell out a few thousands to pay up your challan. In our opinion, not worth the hassle and the money spent!

3. Avoid making ‘avoidable’ claims to take advantage of No Claim Bonus (NCB) and reduce your premium! Driving your vehicle carefully will help you get a discount on the own-damage cover premium. Did you know, for every year that you do not make a claim, after five years you are eligible for 50 percent discount on your premium? Quite a deal! Thus, make sure you practice good road etiquette and avoid making unnecessary claims to receive the NCB amount on your next renewal.

4. Optimize the add-ons you choose to gain more coverage while paying less! More often than not, we get lured by attractive offers and in the bargain end up with policy features that are not useful. To reduce lofty premium, review your policy carefully and eliminate impractical add-ons. This will help you significantly reduce your premium for an optimum coverage for your vehicle.

5. Optimize your car’s Insured Declared Value (IDV), which is the estimated market value of your car. IDV is the basis on which the insurance company will decide how much amount you can claim. However, not all people maintain their car equally. Thus, insurance companies allow buyers to increase or decrease their car’s IDV within set parameters. This has a direct impact on the amount of premium you pay for car insurance renewal.

6. Choose a higher voluntary deductible in policy to gain an immediate discount on your policy premium. A voluntary deductible is the amount of money you agree to pay extra when you make a claim against your car insurance policy. Now, as a responsible driver, you will not be making any claim in the given policy year, so the discount becomes yours to keep.

7. Get an ARAI anti-theft device and lower the premium you pay for your insurance policy. Automobile Research Association of India or ARAI has made special provisions for responsible vehicle owners. They have identified and certified several anti-theft devices that can be installed by car owners to deter thieves from stealing their vehicles. If you install such a device, you get to save on car insurance premium.

8. Bundle your insurance policies to get a discount on your car insurance premium. For instance, if you already have another policy with the same insurance provider, you can check with them if a discount on car insurance is possible.

9. Increase your policy deductibles to reduce your car insurance premiums. Basically, the more your deductible is, the lesser premium you will have to pay. For example, you set your deductible at INR5,000 and your claim is worth INR10,000, you will pay the first INR5,000 and the insurer would pay the remaining INR5,000. However, a word of caution – ensure you do not select a deductible that is unaffordable and you’ll be expected to shell out this amount when you make a claim.

10. Avoid the frills and do not make modifications to your car. Car modifications such as alloy wheels, spoilers, automotive night vision, ultrasonic sensors etc, may lead to a higher premium. Should you want to reduce your premium cost, it is advised to steer away from such modifications.

Conclusion

Now you know that it is possible to save a lot on your car insurance policy premium. So do not shy away from opting for a great comprehensive policy and secure your journeys!

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry, S. Gopalakrishnan is a name to reckon with in the field of reinsurance; he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on the latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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Few Other Articles:

• How To Avail Discounts on Car Insurance

• Tips to Reduce Car Insurance Renewal Cost

• This New Year Learn How to Earn Massive Discounts on Car Insurance

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