Tips to Reduce Car Insurance Premium

11 July 2023
5 min read
Tips to Reduce Car Insurance Premium
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While owning a car is a luxury, sometimes its convenience may come at a price.

From ensuring its smooth functioning on the road to buying insurance for its safety, the associated expenses can elevate in no time. While having car insurance is a win-win deal, the premium of the same can be a source to burn your pocket.

So what to do? Is there any way to reduce the car insurance premium?

Yes, there is. Well, there are many!

We have listed some of the best ways and tips to reduce your car insurance premium easily here in detail. This is a specially curated blog that will assist you in saving those extra bucks from getting spent on car insurance premiums.

6 Ways to Reduce Your Car Insurance Premium

Have a thorough look at the easy ways to reduce your car insurance premium-

1) Ensure to Transfer your NCB

You may or may not know this fact that NCB is linked to an insurance policyholder and not the car.

So, suppose you are purchasing a new car and selling your existing one, make it a point to transfer your NCB! You can easily carry forward your NCB from your old car insurance to the new one.

Reach out to your insurer, convey to them that you need to transfer your NCB, and voila, they will help you avail a certificate required for the transfer. This tip will be worth using to reduce the premium rate of the new insurance policy you would buy for the new car. 

2) Increase the Deductible Amount

One of the best tips to swear by would definitely be this one.

By raising your deductible amount, you can diminish your car insurance premium. Well, in simple words, a deductible amount is the sum that you would pay out-of-pocket towards some repairs/claims before your policy shields the remainder. You can even opt to begin with a low deductible amount and increase the same going forward.

Although, note that you should increase your deductible only as per your wallet’s appetite.

3) Avoid Making Claims for Small Expenses

Before elaborating on this point, answer this. Do you know that if you do not make any claim for consecutive years, you tend to gather the No Claim Bonus?

Well, if you didn’t know this, the above statement is true.

You can gather this No Claim Bonus that allows your insurance premium to get discounted by as high as approx 50 per cent.

Wouldn’t that discount be a massive saving? It would certainly be.

Now, getting back to the point, we know that the primary objective of the insurance is to provide cover for any damage, but you can skip the claim in case of small problems like a broken tail light or mirror.

We are saying so because the repair cost of such tiny problems will be much less than the amount saved by no claim bonus discount on your insurance policy renewal. During the insurance policy renewal, the amount of NCB is subtracted from the premium’s cost, resulting in reducing the premium. 

4) Secure Your Car with Anti-theft Devices

We all know India has a high theft rate across the country. With inflating cases day by day, securing your car with an anti-theft device would be a good choice!

Such devices are pretty useful to combat any burglary and provide 360° of protection. Installing these devices is even useful for reducing the annual insurance premium by approx 5-8%.

You may also like to know How to Transfer Car Insurance Policy

5) Go Online to Get a Car Insurance Policy

There’s no denying the fact that the internet has made our lives simpler by 100x.

From buying clothes and food from the web, people are now even purchasing cars online too! So why not go for getting insurance for the same online as well?

In today’s day and age, hundreds of online platforms offer affordable insurance policies with just a few clicks. Sign-up on a reliable platform, scroll and compare the insurance options, and go for the one that fits your bill.

It is an easy hack to get a policy that has low premium amounts.

6) Be Vigilant with Renewing You Insurance Policy on Time

If you miss renewing your policy, you are putting yourself at monetary risk. 

In case you skip policy renewal, you may have to start an insurance policy all over again.

It may lead to additional costs too, which you definitely wouldn’t like to sign-up for, right?

Not just this, it may even lead to losing all the accumulated bonuses in no time.

Hence, ensure you renew your policy on time before you have to incur any additional expenses.

The Bottom Line

As we mentioned earlier, buying a car insurance policy is an expensive affair. It can easily drain your hard-earned money like water if not optimised carefully.

So, if you don’t want to end up in a pool of draining money, make the most of the tips mentioned above.

Just make sure you use these tips to reduce your car insurance premium wisely and save what you can!

You May Also Be Interested to Know-

1.

How to Renew Car Insurance

2.

5 Best Car Insurance Policies in India

3.

How to Check Vehicle Insurance Status Online

4.

What is the Real Cost of Owning a Car?

5.

Insurance Frauds in India - How to Avoid

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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