Effective Ways To Reduce Car Insurance Renewal Cost
Updated On Oct 16, 2023
Read this article to find out effective ways that you can reduce the cost of your car insurance premium.
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According to the Motor Vehicles Act of 1988, car insurance policies are mandatory in India. To be able to drive legally on Indian roads, every Indian car must have a valid car insurance policy. Typically, the policy has a one-year term after which it is supposed to be renewed. To renew car insurance, you must pay the renewal premium, after which the policy will be renewed. There are even ways to lower the renewal premium on your car insurance policy.
Ways To Reduce Premium For Renewing Car Insurance
Reducing the cost of the premium is very simple. Here are five of the most common methods for lowering premiums when renewing car insurance online-
Always Compare Policies
There are over a dozen car insurance policies, each with a different premium rate. Comparing is essential for obtaining the lowest premium rate and lowering the renewal premium. Go online, compare the various car insurance plans on the market, and then select a policy that provides the best insurance coverage at the lowest premium rates. It is legal to change insurance policies when they come up for renewal. So, look for the best coverage and the lowest premium rates before renewing your car insurance, and your renewal premium will be reduced.
Utilizing The No Claim Bonus
Renewal discounts are available on car insurance policies if no claims are filed during the policy year. This is referred to as a No Claim Bonus (NCB) discount. When no claims are made during the policy year, the discount increases after each successive policy year (for a total of five years). When it comes time to renew your car insurance, keep the NCB bonus available in your policy in mind. You can use this to get a discount on your renewal premium, effectively lowering it.
Renew Your Car Insurance Online
When it comes to renewing your policy, you have two options: online or offline. Offline renewals may result in higher premiums because the policy is renewed through a middleman who receives a commission. The premiums are higher to cover their commissions. When you select the online mode, you are purchasing the policy directly from the insurance company. You do not need to visit the company office because this is done online. As a result, premiums are lower. Choose to car insurance renewal online to save money on your premiums.
The voluntary deductible is the portion of the claim that you choose to pay yourself. The car insurance company claim liability is reduced when you choose a voluntary deductible limit. Therefore, the company permits a premium discount. By going for a voluntary deductible, you can save money on your renewal premium. However, keep in mind that this will reduce the amount of the claim receivable.
Look Out For Discounts
In car insurance policies, various types of discounts are available. Look for these discounts to help you save money on your renewal premium. You can get discounts for installing safety devices in your car, becoming a member of reputable automobile associations, and so on. When renewing, look for these discounts to lower your renewal premium.
These pointers will assist you in lowering the renewal premiums on your auto insurance policies. You can use one or more of these suggestions to lower your premiums. The most important tip, however, is to compare policies online before renewing them. When you compare, you can find the lowest premium as well as the highest discount rates. So, when renewing, always compare and use the above-mentioned tips, and your renewal premiums will undoubtedly be the lowest.
Disclaimer: This article is issued in the 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.