How to Reduce Cost of Car Insurance Renewal?
Published On Feb 04, 2021, Updated On Aug 29, 2023
The Motor Vehicles Act mandates all vehicle owners to have car insurance in India. As the renewal premiums are costly, it is still possible to save on premiums by making use of accumulated No-claim bonuses, choosing voluntary deductibles, and renewing online.
It is mandatory for every car owner in India to have a legal and a valid insurance policy, to drive legally on Indian roads. But the car insurance policy is valid only for a year in India and should be renewed henceforth. The vehicle owner has to pay the renewal premium and end by paying a large amount of money as premiums. Thus it is not uncommon for car insurance seekers to look for ways to save the car-renewal cost.
Proven Ways to Reduce Cost of Car Insurance Renewal:
It is important to renew the policy cover every year to enjoy long-term and continued coverage. But the insurance premiums could be quite tough on the wallet, as they have to be renewed every year. Here are some proven ways to decrease the cost of the insurance renewal.
1. Prevent the Policy from Lapsing:
Vehicle owners should prevent the policies from getting lapsed as the car insurance company will not award any discounts and benefits on the lapsed policy at the time of renewal. Not renewing the policy on time, will end up in the No claim bonus getting lapsed as well.
2. Make Use of the Accumulated No Claim Bonus:
Insurance companies can render rewards up to 50% on the car insurance premium for every claim-free year. Though the reward offered in the first year is 20%, it keeps accumulating and at the end of the fifth no claim year, it can aggregate to 50% and translate as great savings on the premiums.
3. Do Not Try Costly Modifications on the Car:
People think of enhancing the aesthetics of the car by modifying its wheels, interiors, etc., to render the car a good look. But all these can only end up escalating the premiums of the insurance as the repair and replacement costs of these parts are also very high.
4. Refrain from Making Claims for Minor Repairs:
The No Claim Bonus will go waste if even a single claim is made in the policy year. The insurance companies will not offer any reward, even if a single claim is made in the policy year. Thus it is a wise step to choose a voluntary deductible and not claim insurance for minor repairs on the vehicle, as it can directly reflect on the renewal premium.
5. Renew the Policy Online:
While attempting to car insurance renewal, it is possible to take advantage of the discounts from the online coupons and discount vouchers. Buying online is the best way to purchase insurance directly from the company, without any interference from the middle man.
6. Long Term Insurance Policy:
A Long term insurance policy cover is also the best idea to save on the premiums, as they last for two to three years without having to pay for the premiums every year.
There are a dozen insurance policies for vehicles with their terms and premium costs. To get a policy at the lowest price, one has to compare policies online and choose the best policy that offers comprehensive coverage at a low premium cost.
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.