Save Money On Car Insurance

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

Tips for Cutting Car Insurance Premium Price

According to the Motor Vehicles Act of 1988, car insurance policy renewal is mandatory by law in India. It is not legal for cars to run on Indian roads without being duly insured with at least a third party car insurance policy. When a policy is initially purchased, it usually has a tenure of one year, after which it must be renewed on a regular basis. You have to pay the renewal premium when renewing your policy. However, there are some things to be aware of that may enable you to reduce the cost of renewal and save you some expenditure.

5 Ways to Reduce the Cost of Renewing Your Car Insurance Policy

Here are some ways to save money while renewing your car insurance policy. While the procedure is mandatory by law, and so you must pay the renewal premium, you may be able to avail some discounts in the process.

1. Use Your Accumulated No Claim Bonus (NCB)

No Claim Bonus refers to a discount that becomes available to you at the time of renewal if you have not raised any claim during the policy tenure. It is cumulative in nature and a percentage of your renewal premium will be discounted depending on the number of years in which you have not raised any claims. With this, you can save money on your car insurance policy renewal.

2. Compare and Renew

At the time of renewing your policy, compare it to those offered by other insurance providers and the policies that they offer. Make an informed choice after having all the information about various premiums and coverages across a variety of insurance providers and policies. This will enable you to save money by letting you select the most economically suitable policy.

3. Install Anti-Theft Device in the Car

If you install an anti theft device that has been approved by ARAI (Automotive Research Authority of India), you can save an amount on your car insurance renewal premium. This is due to the fact that an anti theft device is viewed by insurance companies as a factor which reduces the likelihood of you raising a claim in the future, as it reduces the risk of theft which is one of the factors by which car insurance companies will assess the premium cost to charge you. Thus by installing such a device you will be able to fetch a discount on your renewal premium.

4. Renew Your Policy Online

Not only does online renewal of your policy allow you to escape the additional cost of commission for any insurance brokers or other parties as you deal directly with the insurance company, it would also allow you to compare various insurance premiums and thus get the best possible premium for your policy renewal.

5. Mention Correct IDV (Insured Declared Value)

IDV refers to the market value of your car which the insurance company would compensate you with in case of a claim. It depreciates every year and would have an impact on your insurance premium, thus mentioning the correct IDV would save you some amount on the renewal premium.

Takeaway

Renewing car insurance is a mandatory process, but its costs can be minimised in various ways, if you are aware of the different ways to avail discounts and save expenditure.

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.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.