Tricks To Reduce Your Car Insurance Policy Premium

Written by Udit Varshney

Updated On Oct 15, 20232 min read

The Insurance Regulatory and Development Authority of India (IRDA) raised third—party motor insurance premium rates last year. As a result, car insurance premiums have risen by 25 to 40%, depending on the engine capacity of the vehicle. In cars with engines up to 1,000cc, the average premium has increased by 5–6%, and by 15–20% in cars with engines over 1,000cc.

Tricks To Reduce Your Car Insurance Policy Premium

The overall premium for private vehicles has increased by 5–6% in cars with engine capacities up to 1,000cc and by 15–20% in cars with engine capacities above 1,500cc. Despite the fact that the third--party premium rate is set by the regulator, there are ways to reduce the car insurance premium amount.

Tricks To Reduce Your Car Insurance Policy Premium

The following are five methods for lowering your car insurance premium:

1. Minimize Small Claim Costs

Policyholders are entitled to NCB for each year without a claim. Though the primary goal of car insurance is to cover any harm to the car, the policyholder must forgo filing a claim if the problem is minor, such as a broken headlamp or tail light.

2. Move NCB To A New Car

Since car insurance is related to the policyholder, not the car, the accrued NCB can be moved to a new car. As a result, it's a good idea to keep the policy even after selling the car and request an NCB certificate from the insurer.

3. Install Anti-Theft Devices In Your Car

Installing safety features/anti-theft devices such as steering wheel and gear locks, air bags, anti-theft alarms, and so on could result in a 5% discount on your premium. Furthermore, members of organisations such as the Automobile Association of India (AA) or the Western India Automobile Association (WIAA) may receive special benefits and premium discounts. These organisations are approved by the Motor Vehicles Act and Rules, and their members are considered "good drivers."

You may also like to read:- 5 Reasons Why You’re Paying A Higher Car Insurance Premium!

4. Purchase Car Insurance Online

There are several online insurance websites available today that allow you to compare insurance premium rates in minutes. Furthermore, most online sites offer car insurance at a cheaper price than offline outlets, so you get better offers online. Furthermore, you can buy car insurance from the best car insurance providers in just five minutes, absolutely paperless.

5. Aim for Bigger Discounts

The policyholder may be eligible for car insurance premium discounts based on his or her age, driving record, occupation, and other requirements provided by the insurance provider. Check with your insurance company to see whether you qualify for a discount if you have paid for parking for your vehicle. Furthermore, if you are a member of an association such as the AAl or the WIAA, you can get a discount on your car insurance premiums.

Car insurance premiums are expected to continue to climb in the future. There are, though, a variety of things you can do to lessen the pain. These pointers should help you get on the right track.

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 Udit Varshney

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Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Udit in his last stint helped set out the last mile vertical, which soon became the go-to logistics name for daily needs, In his free time, Udit likes to write and listen to poetry.