There is no alternative to buying car insurance. The Motor Vehicles Act of 1988 makes it mandatory for cars running on Indian roads to have at least a Third Party Liability Plan. However, since Third Party Liability plans do not cover own damage or injuries, they are not much coveted. Comprehensive car insurance is greatly preferred by new as well as existing car owners due to the wide range of coverage it has to offer.
Safeguarding your car from the risk of losses and damages comes at a price; not to mention, the cost of purchasing an adequate coverage for your car is exorbitant. On the upside, there are myriad ways to reduce the car insurance premium.
Listed below are 12 major tips every car owner can employ to reduce the car insurance premium.
Compare Car Insurance Premium
There are a plethora of car insurance service providers in the market, all of whom essentially offer the same services. But it is always wise to compare before zeroing in on a particular car insurance service provider. By comparing the reviews and ratings of various other service providers online, you can choose one with a higher customer experience index.
Install Safety Features
Enhance security for your car by installing anti-theft devices approved by the Automobile Authority of India. Installing safety locks, anti-theft alarms, and additional passenger airbags are rewarded with a discount on the premium by car insurance service providers.
Avoid Policy Lapse
Be mindful of your car insurance renewal dates lest your car insurance plan should get lapsed. You will lose out on accumulated No-Claim Bonus in case your car insurance premium gets lapsed. Therefore, it is imperative to renew your car insurance premium online within the duration of 90 days from the expiry.
Get Suitable Coverage for Your Car
Before you home in on car insurance for your vehicle, it is important to assess your insurance needs. For instance, if your car runs on risky routes or rocky terrains, having a comprehensive coverage with adequate add-ons is indispensable. On the other hand, if your car is mostly garaged and is taken out less often, you can opt for just comprehensive car insurance (without add-ons). Refrain from buying unnecessary add-ons in order to keep the insurance premium low.
Avoid Frequent Claims
Claiming small sums can cost you more in the long term as you lose out on the No-Claim Bonus. For every claim-free utility, you are eligible to receive No-Claim Bonus, availing which you can get up to 50% off of the premium amount. Shelling out small claims from the pocket is the best way to keep your premiums low.
Raise Voluntary Deductible
Higher deductible component is an efficient way to lower your premiums. Have a word with your insurance service provider about increasing your voluntary deductibles so that the amount of premium may be lower.
Concessions for Old Vehicles
The provision for laid up vehicles will allow you to extend the tenure of coverage for the period during which the vehicle remains unused. The premium paid for the extended tenure remains the same, thus, reducing the overall cost of insurance for your vehicle.
Transfer No-Claim Bonus
No-Claim Bonus does not pertain to the car; rather it is linked to the policyholder. Since No-Claim Bonus is transferable from old to new cars, getting discounts on the premium of a new vehicle is easy. All you need to do is transfer the accumulated No-Claim Bonus and link it to the new car insurance plan to get discounts on the premium amount.
Reduce Coverage for Old Cars
Comprehensive car insurance is crucial to safeguard your car from potential losses and damage. But, it is often an extraneous expense for cars that are too old. The best way to avoid paying excessive and unnecessary premiums is to discontinue comprehensive car insurance plans taken for old and under-utilized cars.
Long Term Cover for New Cars
If you are the proud owner of a sparkling new vehicle, you might want to home in on long term insurance plans. You will be eligible for an OD discount on the premium if you decide on buying a long term plan for three years. You can also get discounts on Third Party Liability premium as directed by the Insurance Regulatory and Developments Authority of India.
Avoid Additional Accessories
Additional coverage towards electronic and non-electronic accessories that are not on the manufacturerâ€™s list enhances the premium of car insurance. Therefore, forgoing coverage for additional accessories can lower the amount of premium.
Look Out for Better Quotes
Keep an eye out for other insurance plans under other renowned service providers in the market. If there is an increase in the annual premium amount of your current insurance plan, you might want to make a switch. Get free quotes from various other service providers online and compare the coverage with the price.
From the above points, we can conclude that there are myriad options at a car ownerâ€™s disposal that amount to a reduction in the premium amount. Car owners may also talk to their insurance service providers and let them know about their insurance requirements along with their budget to get the assortment of plans with low premium options. Look out for the best insurance plan for your vehicle by signing up on the PolicyX.Com. You will find an assortment of various car insurance options to compare and choose from.
Article created in association with PolicyX.