How to reduce your car insurance premiums1 min read . Updated: 14 Jun 2021, 02:44 PM IST
The mandatory third-party insurance has resulted in higher car insurance premiums for the vehicle owners.
- Avoid modifications, small claims in order to get optimum benefit from your car insurance policy.
The car insurance premiums are ever-increasing and creating a bigger burden for the vehicle owners in this tough time. The rising fuel costs along with the new government policies and higher car insurance premiums are burning holes in the pockets of the customers in India.
Since the Indian government has made third-party insurance coverage mandatory for any vehicle owner, the 'best insurance at lowest premium' has become a thing of the past. However, you can minimise the car insurance premiums by following a few simple steps.
Here are few key steps to follow to keep the car price low.
Increase the deductibles
You can reduce car insurance premiums by increasing the deductible component of the coverage. If you pay too much premium for the car insurance coverage, then the purpose of the policy purchase becomes unfruitful. Hence, only pay as much as you can afford. By increasing the deductible components of the policy, you can reduce the premium. This can save a hefty amount of money every year.
Don't claim small amounts
Claiming the insurance benefit each and every time your car faces some small issues is a short-sighted move. This can impact the insurance coverage benefit in the long run. Hence, try not to claim the small amounts for issues like a broken taillight or a broken wing mirror or a small dent. Such repairs can be done easily by the local mechanics and at a cheap rate.
Following this step will help you to accumulate the non-claim bonuses as well. If a car owner buys an insurance plan and doesn't claim benefit, he or she becomes entitled to a non-claim bonus or NCB for every claim-free year.
Accumulate and transfer bonus
Accumulating the non-claim bonuses can become helpful in the long run to receive better coverage benefit from the plan. The car insurance is linked to the vehicle owner, not to the vehicle. The accumulated bonuses of your current vehicle can be transferred to the new model you will buy. Hence, retain the insurance in your name when you sell the present car.
Staying loyal to a particular insurance company for a longer period comes with its own benefits. Also, if the car owner has other policies in different segments from a particular company and approaches the same insurer for car insurance, he or she might avail lower insurance premium as a loyalty reward.
Focus on safety
Installing safety devices such as anti-theft device, steering locks, gear lock, wheel locks, anti-theft alarms, airbags help in reducing insurance premiums. The insurance companies might offer up to a 5% discount on insurance premiums if your car has these features.
Avoid car modification
Modifying a car certainly makes it distinctive amid the crowd. But that comes with a negative impact on insurance premium. Installing high-end gadgets or aftermarket parts can lead to a higher premium. Not informing the insurance company about the modifications could lead to the invalidation of the insurance policy as well.