5 Ways to Save Money on Car Insurance Renewal!
A car insurance policy is essential for keeping yourself insured against financial liabilities which might arise due to unavoidable circumstances involving your car such as road accidents, theft, natural calamities, fire, explosion, etc. However, every car insurance policy comes with a validity period after which you need to get it renewed. After this period, one needs to renew it to continue enjoying the insurance coverage and its other benefits.
5 Ways to Save Money On Car Insurance Renewal
Following are 5 effective ways using which you can save money while getting your car insurance policy renewed.
Transfer No Claim Bonus (NCB)
If you have the habit of claiming for every single damage that may occur to your car, even for the minor ones, stop that immediately. Filing a claim for every single damage is not a good option, because insurance companies provide discounts on the premium amount while renewing your car insurance policy for not claiming any bonus during its validity period. This discount is called No Claim Bonus. The NCB discount ranges between 20%-50% on own-damage premium.
As per IRDAI, below is the list of available NCB percentage, a policyholder can avail for each claim-free year:
Claim Free Years
Install Anti-theft Devices
It is recommended that one must install ARAI (Automobile Regulatory Authority of India) approved anti-theft devices in their car. These devices would not only safeguard your car against all attempts of theft but also help you to save money on your total insurance premium amount while getting your car insurance policy renewed. Some insurance companies do provide discount rates of up to 2.5% (up to Rs. 500). By installing anti-theft devices you are reducing the risk borne by your insurance company for loss of your car due to theft. Thus, in turn, the company gives a discount on installation of these devices.
Get Your Policy Renewed Online
Renewing your car insurance online can get you more rebates on the total premium amount, because on running a web portal an insurance company is cutting down on the costs of hiring agents or on-boarding brokers for selling a product. They pass over this discount to you as a discount on your car insurance policy renewal. Additionally, online renewal also enables you to compare different renewal plans offered by different insurance companies and select the one which is being offered at the most reasonable premium.
AAI Membership Discount
Getting an AAI (Automobile Association of India) membership is going to fetch you some additional discounts on your car insurance premium amount. Simply mention your AAI membership while renewing your car insurance plan to be eligible for getting discounts on your premium amount.
Have a Good Credit History
A good credit history can help you bag big discounts on your car insurance policy renewal. Insurance companies decide the IDV (Insured Declared Value) or the total market value of your car based on your credit and repayment histories. A good credit score can enable you to save a good amount of money on your car insurance renewal procedures.
Source: Insurance Information Institute
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Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.