How Can I Pay Less for My Car Insurance?
Published On May 28, 2021 10:00 AM By InsuranceDekho
Worried about the higher rate of car insurance premium? Here are some tips to reduce it.
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Car insurance is a must for every car owner based on the rules of the Indian Motor Tariff. But, with the soaring costs of car insurance, it has become a little difficult for many people to enjoy the insurance cover due to which they end up buying only a third party insurance cover to meet the basic requirement of law. This can make a lot of vehicle owners deprived of maximum benefits extended by comprehensive insurance plans that can lead to a secured car ride.
However, despite the rising cost of car insurance, you can enjoy the car insurance benefits with some tips to reduce your car insurance premium. Let’s find out some ways to pay less for car insurance.
Ways to Reduce the Car Insurance Premium
Here are some of the ways to lower your car insurance annual premium without losing out on any policy benefits:
Buy Car Insurance OnlineWhen it comes to purchasing a car insurance plan, it is always suggested to buy it online. Nowadays, several online motor insurance platforms are available that allow you to compare car insurance policy premium quotes within a few minutes. The online policy comparison enables you to get better insurance deals at affordable prices after going through all the pros and cons of the plans. Also, most of the online platforms offer car insurance plans at a lower cost when compared to the offline channels due to the absence of extended distribution channel, agent fee, documentation costs, etc.
Avoid Raising Small ClaimsPolicyholders are entitled to receive a No Claim Bonus (NCB) for every claim-free year of their car insurance, which will reduce their next year’s premium. Even if you make a small claim, your NCB benefit will be eliminated while the cost of repair of trivial issues is lesser in comparison to the premium cost reduction benefit due to NCB. Hence, you can easily lower the car insurance premium cost by simply bearing small claims of your own.
Transfer NCB to the New CarThe No Claim Bonus (NCB) is provided by the insurers to policyholders for not making any claim in a policy year, which can be achieved with sensible and responsible driving. This goes to show that NCB is earned by the driver due to which its benefit is linked with the policyholder and not the car. Now you just have to transfer this bonus to your new car to retain the benefit even after selling your previous car. It will allow you to lessen the car insurance premium of your new car insurance policy.
Installation of Anti-Theft DevicesAnti-theft devices are installed in cars by car owners to protect them against theft which brings down the possibility of making insurance claims and lessen the burden on the insurance companies. Therefore, insurers provide a certain rate of discounts to policyholders who have installed Automobile Research Association of India (ARAI) authorised anti-theft devices like an anti-theft alarm, steering wheel lock, and so on, in their cars.
Avoid Any EmbellishmentMany car owners like to modify their cars to enhance their performance or to make it look attractive. The modifications can be made by adding alloy wheels, automotive night vision, spoilers, ultrasonic sensors, and so on. But, installation of such gadgets can lead to a higher amount of premium, therefore, such modifications should be avoided to keep your car insurance premium low. However, if you still wish to make the modifications, you can make it by notifying your insurer, otherwise, your insurance company may invalidate your claim request in the future.
With the aforementioned tips, you can reduce your car insurance policy premium without making any special efforts. We hope such tricks will help you turn your car insurance plan into an economical one. Now, when you are aware of the tips to lower your insurance premiums, you should try to get a comprehensive car insurance plan instead of settling for a third party plan.
You May Also Like To Read:
How Modifications in Cars Can Affect Car Insurance?
Everything About Anti-Theft Devices and Their Impact on Car Insurance
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.