Car insurance online prices are rapidly rising, as are car insurance premiums, especially after the recent 40% increase in the thirty-party insurance premium. In such cases, you know how to reduce car insurance premiums. In the article below, you can find tips on how to lower your premiums.
Five ways to save on car insurance –
Look at these five tips for lowering your car insurance premiums:
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- Car insurance comparison:
Always compare the benefits and quotes of various car insurance companies/agents before purchasing car insurance. Companies allow you to compare car insurance premium rates charged by different insurers and select the ideal policy for you.
Furthermore, it would help if you asked your current insurer for loyalty rewards, which would lower your car insurance premium rates. However, be wary of car insurance companies that claim to provide ‘free’ or ‘affordable’ insurance; this is usually only available for the first year and cannot be customised. Most importantly, before purchasing the policy, carefully read the fine print.
Advice: Calculate car insurance premium using an online calculator to find affordable premium prices that caters to your needs.
- Use caution when choosing coverage:
A car insurance policy typically includes a set of benefits. However, if your policy allows it, you can opt out of features you don’t need. This helps to reduce the cost of car insurance. Avoid purchasing all add-on covers because they may raise your premium. Select only those that are required.
Advice: Use appropriate addons like zero depreciation insurance for car to ensure the damages or losses are covered, based on the company’s terms.
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- Select ‘pay as you drive’ insurance:
A few insurers do offer ‘Pay as you drive,’ a new concept in the Indian motor insurance industry. According to it, the insurer only charges a premium for the number of kilometres specified in the policy documents. If you only drive occasionally, this is the ideal way to save on your insurance.
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- Increase your deductibles voluntarily:
Increasing your deductibles or choosing voluntary deductibles can help you save on car insurance. The policyholder pays a deductible out of pocket when filing a claim. When choosing deductibles, it is preferable to pay modestly rather than extravagantly. If you have no deductible, your insurer can pay the total claim amount in the event of an accident, but your monthly premium may be higher.
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- Avoid filing claims for minor injuries:
True, car insurance or car insurance renewal aims to save on the costs of repairing a damaged vehicle. However, filing claims for minor damages could not work against this goal. You lose the benefit of the accumulated bonus or No Claim Bonus for the slightest claim you make (NCB). If you have yet to make a single claim during the policy period, the accumulated NCB can reduce your car insurance premium by up to 50%.
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The wise thing to do is to get minor repairs done at a nearby garage. If the repair cost exceeds the NCB, you can potentially accumulate and avoid filing a claim.
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In a Glimpse –
There should not be a need to pay too much for car insurance online. You can save by following the advice provided above. Make sure you drive safely and obey all traffic laws. Also, before purchasing a policy, read the policy documents thoroughly.
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Keep track of the new prices, companies and variations on such insurances and calculate car insurance premium online to find ideal deals.
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
