Key steps to avoid pocket burning car insurance premium

  • Following some simple tips can help a car owner with lower insurance premium.
By : HT Auto Desk
| Updated on: 09 Jan 2022, 15:22 PM
Car Insurance premium depends on multiple factors.
Car Insurance premium depends on multiple factors.
Car Insurance premium depends on multiple factors.
Car Insurance premium depends on multiple factors.

Car insurance is something that is essential for a vehicle and its owner. However, comprehensive car insurance can be customised in order to bring down the amount of premium for the cover. Also, the vehicle owner can follow some key tips to ensure the insurance premium doesn't increase unnecessarily.

(Also Read: No insurance claim if vehicle driven without valid registration: Supreme Court)

Car insurance basically has two components - third-party and own damage. The third-party insurance covers any damage or injury incurred by a third party in case of an accident. The other one insures the consumers and his or her own car against any damage in case of an accident.

 

The third-party insurance premium is fixed and the cover is mandatory. But the own insurance premium can be reduced by following some tips.

1

Don't customise the car heavily

Too many modifications not only impacts the performance of a car but also draws an extra burden of insurance premium. Retrofitting a car with any electronic device or a CNG kit should be informed to the insurer as this may revise the premium amount. Modifications that enhance the risk of theft and any kind of technical customisation of a car result in increased premiums. Accessories such as bull bars, pressure horns, tinted head or tail lights, fake carbon fibre, flashing brake lights and over or undersized wheels and tyres should be avoided.

2

Pay the premium on time

Not paying the premium on time is a bad practice as the insurer sees this as a risk and increases the premium amount for the car owners. Hence, the premium should be paid on time. Also, choosing car insurance online after comparing is a simple and convenient method to reduce the premium.

3

Install anti-theft device

Lowering the risk of car theft is an easy way to reduce the car insurance premium for the owner. The higher the safety of the vehicle, the lower the premium for its insurance. A car owner can install anti-theft devices such as gear locks, anti-theft alarms, steering locks from registered manufacturers, which will help them with lowered insurance premiums.

4

Raise deductible

The deductible is the amount the car owner pays for the damage before the insurer covers that. The higher the deductible amount, the lower the chance of premium being lowered by the insurance company. 

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5

Claim wisely

Avoiding claims for small and minor damages like a scratch or a dent is a wise decision to avail the benefit of a no-claim bonus (NCB) in the next renewal of the policy. Getting NCB will help the car owner with a reduced premium. NCB is the discount in car premium the vehicle owner gets from his or her insurer for not filing claims during the policy tenure and it can range between 20-50 per cent.

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6

Don't go for unnecessary add ons

Add ons help expand the scope of comprehensive cover, but they also increase the premium. Add ons should be picked depending on the requirement of the car owner, not by impulse. Not choosing unnecessary add ons for the insurance cover helps in lowering the premium amount.

First Published Date: 09 Jan 2022, 15:22 PM IST
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