Know How to Reduce Car Insurance Premiums

Car insurance is crucial when one owns a car. It can be Comprehensive Car Insurance, Own Damage Car Insurance, or Zero-Depreciation Car Insurance. Whatever be one’s chosen plan, one must not be fooled into paying high premiums. There are several ways to reduce the premium rates of your car insurance.

Keep these tips in mind!

Compare Car Insurance

Most insurance companies have their official website where all details about policies are given. There are several other websites where insurance comparisons are done. Remember that “cheap” is not always the best. If you are getting low premium rates, you should still get good coverage. Do not get swayed by low premium rates and ensure you avail all the necessary benefits. If you have been with the same insurance company for a long, try shifting insurance to a competing insurance agency.

Transferring Car Insurance

If one is lucky enough not to have made any claims during the policy tenure, they are eligible for a No Claim Bonus (NCB) which will help in availing discounts during the time of renewal. While buying a new car, one need not worry about losing the benefits of the bonus since this bonus can be transferred to the new car insurance. If one sells their vehicle for which they have made no claims, they can ask the insurance provider for a no-claim bonus certificate and use it whenever they buy their next vehicle. Remember that the premium rate will not lower while buying new car insurance but, the discount will help in reducing the premiums.

Care About the Coverage

Insurance policies come with several add-on covers. Always review coverage during renewal and do not drop any coverage until it is absolutely necessary. Having your car completely covered is the wisest choice. Here are some add-on covers:

  • Loss of Baggage and Belongings – Used for making a reimbursement claim if there is loss or damage of personal belongings at the time of an accident or theft. If one does not raise an Own Damage Claim, this cover can be used without affecting the NCB.
  • Quick On-Road Assistance – If the insured vehicle stops due to a flat tyre, drained battery, no fuel or any emergency, one can avail assistance from the insurance company by just calling them.
  • Zero Depreciation – This is to get a full claim amount on the value of spare parts when they are replaced after an accident.

Keep an Eye on the Excess

When a claim is raised, the policyholder is also required to pay a small sum to the insurance company. There are two types of excess/deductibles:

  • Compulsory Excess – This is a mandatory deductible that one must pay according to rates of the Insurance Regulator
  • Voluntary Excess – This is an amount that the policyholder can volunteer to pay. If you choose a higher amount, it will reduce the premium rates. Choose to pay only if you are a safe driver

Install Anti-Theft Devices

Check with your insurance provider and install anti-theft devices approved by the Automobile Research Association of India (ARAI) that can reduce premium rates. One can also avail discounts by becoming a member of any automobile association such as the Automobile Association of Southern India.

Remember when the policy needs renewal and do not let the policy lapse. If there is a lapse one cannot enjoy the benefits of NBC. Insurance companies also check a policyholder’s driving record so, it is important that one pays attention to the road and drives safely, in compliance of all traffic regulations.