Here Are Six Ways to Reduce Your Car Insurance Premiums

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Car prices in India are continuously rising, as are maintenance costs. Car insurance premiums are rising. For example, the IRDAI recently approved a 40% increase in third-party insurance premiums. In such cases, you need to be aware of the numerous elements that influence your auto insurance premium so that you can get the most benefits while also lowering your premiums.

Here are six tips that will help you save money on car insurance premiums.

  1. Make the most of your NCB

A No-Claim Bonus, or NCB, is the most effective strategy to reduce your auto insurance premium. It rewards you for each claim-free year with a discount on your premium when you renew. Make sure you don’t miss out on this benefit by making the following two mistakes: failing to renew your insurance within three months of its expiry date, and losing the full NCB by filing even a small claim. Pay for minor damage out of your cash rather than file a claim. Furthermore, if you are purchasing a new vehicle by selling your old one or transferring your coverage to a new insurer, remember to transfer your no-claim bonus.

  1. Buy car insurance online

There are numerous internet insurance portals that allow you to compare car insurance premium quotations in minutes. Furthermore, you can find better discounts online because most internet platforms sell car insurance at a lower price than traditional channels. Furthermore, you may acquire car insurance from the major insurance carriers in just five minutes, fully paperless.

  1. Look for discounts

Every comprehensive auto insurance policy has several discounts that can help you save money on your premium. Look for discounts and use them to lower your premium. Furthermore, if you are a diligent driver with few claims, you can choose a voluntary deductible. Choosing this deductible would result in a significant reduction in your own-damage premium. However, keep in mind that the deductible would entail an additional out-of-pocket payment in the event of a claim. When selecting this deductible, consider both the expense and the premium savings.

  1. Compare plans

A car insurance policy for your car is available from more than a hundred insurance firms. While the policies provide equivalent coverage, their rates vary because of the different pricing policies of the insurers. That is why, before purchasing a car insurance policy, you should always compare your options. Shop around for a policy that provides the best coverage benefits at the most affordable premiums. Comparing can help you locate the best bargain for your vehicle insurance plan, and when you buy online, you will be able to claim the online discount and receive a lower premium.

  1. On-time renewal

Finally, renewing your auto insurance coverage on time will help you save money on premiums. Because vehicle insurance policies are legally required, you must have coverage to lawfully drive the car. As a result, renewing the policy on time is suggested to ensure continuous coverage. Furthermore, timely renewals would help to reduce the cost of your coverage in two ways. One, if the policy is still active, you can get a lower renewal premium rate. When a lapsed policy is renewed, insurers tend to raise the rate. Two, you will be able to keep your no-claim bonus, which will expire if you do not renew the policy within 90 days of its expiration.

  1. Avoid making small claims

If your vehicle sustains minor damage, such as scratches or small dents, you should avoid filing a claim because you will be ineligible for a no-claim bonus (NCB) at the next renewal. An NCB in car insurance is a premium reduction offered by your insurer in exchange for not submitting claims throughout the policy period. It can range from 20 to 50%. You can get this if you renew your policy within 90 days of its expiration.

Keep these recommendations in mind the next time you’re looking to purchase or renew vehicle insurance. Use these to lower your premiums and make your insurance more cost-effective. While the coverage would provide financial stability, the lower premiums would please your wallet.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise to informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less traveled territories.

Photo by why kei on Unsplash

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