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How To Reduce Premium For Car Insurance Policy?

Published On Aug 08, 2022

How To Reduce Premium For Car Insurance Policy?

Everyone wishes to have their own four-wheeler. Some individuals get cars out of need, while others buy them for the sake of luxury. Whenever it comes to purchasing car insurance coverage, however, no one has a say. Everyone, whether they like it or not, ought to have vehicle insurance coverage. The basic explanation for this is that all automobile owners are required to have car insurance.

Car insurance is necessary to protect your finances while travelling or even commuting within the city. Whether you merely possess basic liability car insurance or a comprehensive car insurance plan, it's vital to get the best pricing possible. Read on and find out more ways to reduce premiums on car insurance policy.

 How To Reduce Premium For Car Insurance Policy?

What Are Some Tips To Reduce Premiums On Car Insurance Policy?

Car insurance coverage in India is divided into three categories: third-party liability insurance, standalone own-damage cover, and comprehensive car insurance. Third-party liability insurance protects the insured against expenditures resulting from third-party claims. According to the Motors Vehicle Act, automobile owners in India must have at least third-party motor insurance coverage in order to lawfully drive their vehicles on public highways.

Whereas, a standalone own-damage plan provides insurance coverage only for the one damages sustained by the car. If you are looking for a car insurance plan that provides benefits of both a third-party cover and that of own-damages, then comprehensive car insurance policy is right for you.

It provides extensive protection and shields the policyholder from expenditures linked to car damage, personal injury, and third-party claims. Although many insurance buyers are interested in this plan, the significantly higher premiums prevent them from purchasing it. In many aspects, comprehensive vehicle insurance is the greatest solution for individuals who have recently purchased a car and are vulnerable to large charges if an accident occurs.

Following are some tips to reduce premiums on car insurance policy -

  • Comparing Online Insurance - Online car insurance comparison is a procedure that all car insurance policy customers should do without fail. Comparing policies helps you to assess a variety of plans, the majority of which you might have missed out on otherwise, before making your final pick. Insurance prices vary according to the kind of automobile insurance and the degree of coverage provided. A no-frills insurance, with no extra benefits or features, is usually the lowest.
  • Install Anti-Theft Equipment - These are fitted in your vehicle to safeguard it from potential theft or robbery. As a result, you are less likely to file insurance claims (theft of personal or robbery) in the future.
  • Renew Befor Policy Lapse - While you are attempting to reduce your auto insurance price, you must also be aware of errors that result in higher premiums. One prominent example is failing to renew insurance coverage on time. By failing to renew your auto insurance policy and allowing it to lapse, you would not only have to start again, but you may also be required to pay a penalty. In addition, despite having filed no claims throughout the policy's term, you are no longer qualified for a No Claim Bonus. Insurance firms now send reminders to clients about auto insurance renewals electronically because then their policies do not expire.


Automobile insurance is essential for all car owners. If you own a car, you must maintain auto insurance coverage at all times. However, if you believe that purchasing the finest vehicle insurance is a costly endeavour, you may minimise your rates by employing the above-mentioned tips and tactics. However, remember to compare auto insurance coverage whenever you purchase or renew your policy.

Also read: Why Should You Get Long-Term Auto Insurance?

What Does IDV In A Car Insurance Policy Mean?


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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