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how-to-save-on-car-insurance-premium

HOW TO SAVE ON CAR INSURANCE PREMIUM

Below important factors can help you reduce the premium rate on your car insurance. This can be achieved without having to compromise on any of the benefits that you are looking for in the plan:

  1. Opt for a higher voluntary deductible - Voluntary deductible is a part of the car insurance claim amount that you will be required to pay. Only after you pay the deductible will the policy kick in and pay you the remaining claim amount. You can choose the voluntary deductible amount at the time of policy inception. The higher the voluntary deductible, the lower will be your premium. However, you should only opt for a deductible amount that you will be able to comfortably pay at the taxing time of a claim.

  2. Decrease the coverage on older cars - At the time of policy renewal, you should review your coverage and make sure that your auto insurance is in alignment with your needs. So, for instance, if your premium is more than 10 times the worth of your car, the car insurance is not a cost-effective proposition. In this situation, you should think about reducing the extent of coverage.

  3. Do not raise claims for small damages - If you do not make any claims in a policy year, your car insurance company will reward you with a No Claim Bonus (NCB). This is a very attractive proposition, as it will bring down your insurance premium at the next renewal. The No Claim Bonus discount will increase with consecutive claim-free years, and can even amount to a 50% reduction in premium after 5 years. So, if your car has suffered damages, identify the cost of repairs and assess whether it can be easily paid from your own pocket. You should take into consideration the NCB discount when deciding to raise a claim under car insurance. If the cost of repair is much more than the savings you get from the NCB, then you can go ahead and file a claim.

  4. Buy multiple insurance policies from the same insurance company - Some insurers offer loyalty discounts to customers who buy multiple insurance policies from them. So, if you have a life/health insurance policy with an insurer, consider buying a car insurance plan from the same provider. It might help you to save a significant amount on your premium.

  5. Preserve your NCB and transfer it - If you are shifting insurance companies, then you can transfer the accumulated NCB to your new auto insurance policy. For this, you will have to get in touch with your previous insurer and request for an NCB preserve certificate. You can store the NCB for up to 3 months & can transfer the bonus to a new car insurance policy. It will help you fetch discount in premium as per the accumulated bonus.

  6. Compare costs and buy online - If you are looking to get the most optimum insurance plan for your needs at a reasonable price, it is advisable to compare policies between insurance companies at neutral financial websites. This way, you can identify a plan that fits within your budget and also offers maximum protection.

  7. Get membership in Automobile Association - If you become a member of the Automobile Association of India (AAI), you can get a discount on your car insurance premium.

  8. Install security devices - If your car is equipped with an anti-theft device or any other safety gear, you are more likely to get a lower premium quote.

  9. Renew the policy on time - Most car insurance companies insist on vehicle inspection if your car insurance has expired before you bought a new one. The premium quote in this case will also be higher. Some insurers even refuse to renew car insurance that has lapsed for a longer duration.

  10. Buy only the required coverage - If you purchase several add-ons to get maximum protection from your insurance, you should also be aware that your premiums will be higher. So, you should only opt for add-on covers that you really need.

  11. Provide accurate details when buying insurance - Car insurance companies take into account your age, profession, usage of the car, and driving history when offering you a premium quote. So you should always provide accurate details to the insurer.