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How to Save Money on Car Insurance?

21st October 2022 8min read 381 views

India made car insurance mandatory by the Motor Vehicles Act of 1988. In today’s digital India, most vehicle owners buy car insurance online. They find it easy to research various companies and their offerings before making a secure premium payment. Individuals can choose between private and commercial vehicle insurance online. However, picking the best car insurance policy for your needs can seem overwhelming. You have to sift through a large pool of offerings before zeroing in on the plan that offers the protection you want at pocket-friendly prices. Let’s look at how you can maximise your coverage while minimising your premium cost when you purchase car insurance online.

Easy Ways to Save on Your Car Insurance Premium

Compare Plan Options

Before buying a car or a TV, you check all the options and weigh the pros and cons. It’s the same with four-wheeler insurance. Before you purchase motor insurance online, take some time to evaluate all the plans available. Since there’s a lot of competition in the market, you may identify many policies that offer the same coverage at different prices. Taking the time to consider your options can help you save on your premium.

Evaluate Your Policy’s Features

Many car owners opt for insurance packages provided by their car dealer or the insurance company. They forget to comb through their policy and may pay a higher premium for add-ons or riders they don’t require. When the time comes for your motor insurance policy renewal, take a minute to evaluate the policy features. Every rider comes at a cost, so cut out any that do not benefit you.

Maintain Your No Claim Bonus (NCB)

Your car insurance offers a reward for every year that you do not file any claims. Your No Claim Bonus (NCB) is a discount on the premium amount for the following year. You can keep your NCB for car insurance intact by dealing with minor dents and scratches yourself. Filing claims for these issues will impact your bonus and premium for the following year.

Use the Deductible to Your Advantage

All car insurance plans come with mandatory and voluntary deductibles. The mandatory deductible stipulates the percentage of each claim amount that your insurance company expects you to pay. You can opt for a higher voluntary deductible, which generally results in a lower premium. Say your insurance plan has a 5% mandatory deductible. On a claim of INR 10,000, you would have to pay INR 500. If you opt for a voluntary deductible of 20%, you pay INR 2,000 instead. Since you share a higher proportion of the claim cost, your insurance company will likely offer a lower premium.

Install Additional Safety Features

Your motor insurance premium also depends on your risk profile. If the insurance company thinks your car is an easy target or will likely get stolen, they increase your premium. You can install additional alarms and safety mechanisms on your vehicle to reduce the risk and your premium.

While looking for insurance, lowering your premium should not become your priority. Always try and find plans that offer high coverage and a variety of add-ons at pocket-friendly prices. Then, use these tips to lower your premium and make the most of your policy. Always complete your  car insurance renewal online on time to avoid losing your coverage and NCB.

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