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Tips to Qualify for Discounts in Car Insurance

Wish

Written by Udit Varshney

Updated Oct 15, 2023

Purchasing car insurance is also an expense, as the buying of some other product. You can, however, try and reduce the cost of insurance by taking advantage of different discounts available with it. However, many people are also not aware of these discounts and eventually pay a high premium to insure their car.

Many policyholders will expect to have the same insurer and coverage at the time of their car insurance renewal. They are not much aware of the fact that there are a multitude of products on the market that will provide them with sufficient coverage at discounted premiums. The choices for reducing premiums offered by insurers in the form of add-on covers and discounts must be carefully chosen.

Tips to Qualify for Discounts in Car Insurance

Tips to Qualify for Discounts in Car Insurance

There are several options to reduce the premium of your car insurance. The most valuable tips that can assist you in saving a decent portion of the premium are given below:

  1. Voluntary Deductibles: It refers to a price that needs to be paid at the time of making a claim. There are 2 types of deductibles: Compulsory & Voluntary. By the point of claim, the required deductible needs to be paid. If you opt for a voluntary deduction while raising a claim, it implies that you are deciding that you will pay some portion of the claim amount. This will affect the premium and can get you a discount.
  2. No-Claim Bonus: That is the discount given during the previous contract cycle on the renewal of car insurance to drive safely. For every successive claim-free year, NCB is cumulative in nature and increases. If no claims are made in 5 straight years, you will receive up to a 50 percent discount on the car insurance premium. Thus, if you do not make any claims at the time of the policy, you will qualify for a discount at the time of renewal.
  3. Anti-Theft Discount: If your vehicle is covered by an ARAI (Automotive Research Association of India) certified anti-theft device, you will get a 2.5 percent (up to Rs. 500) discount on your car insurance policy's own-damage premium. This is because the vehicle is less vulnerable to burglary and other dangers due to the anti-theft system. This in essence decreases the risk to the vehicle incurred by the car insurance provider and thereby lets you reduce the cost of the insurance premium.
  4. AAI Membership: Members of the Automotive Association of India (AAI) are entitled to obtain a rebate on the cost of their vehicle insurance premiums. Therefore, if you belong to the AAI, at the time of buying an automobile insurance policy, you will get a substantial amount of discount by mentioning your AAI membership.
  5. Car Owners’ Age/Occupation: Some car insurance providers give discounts to specialists such as surgeons, chartered accountants, defence employees, etc. on the premium amount. Few insurance providers sell insurance plans to people belonging to certain age groups at reduced rates as well. New drivers and teens are charged a higher premium since, as opposed to more seasoned drivers, they are considered to be more careless in their driving. The full value of this car insurance discount is offered to drivers in the 25-65 years age group.

Also Read

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Take Away

You are covered by a car insurance plan for financial losses that might occur because of tragic accidents involving your car. Before choosing an appropriate car insurance plan, it is often advisable to review and evaluate various insurance policies. Always make sure to ask the insurer about the discounts before filling out the car insurance proposal form, and make a well-informed decision.

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.

Wish

Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

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.

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