While purchasing a car, we look for the most appropriate car insurance policy for its protection. Whether you are a seasoned driver or are new to driving, car insurance is a necessary means of financial protection.
However, at times it can be an expensive affair to purchase a car policy. The following tips can effectively help you reduce car insurance premium rates so that it is no longer a financial burden for you.
9 Important Tips to Lower Car Insurance Premium
1. Compare Car Insurance Policy and Purchase Online
When searching for the right insurance for a four-wheeler, you must compare the premiums that various insurers quote. The online platform offers you the convenience of comparing rates and benefits to help you find a car policy that perfectly fits your requirements. Moreover, many insurance companies like TATA AIG offer online discounts so that purchasing the policy becomes cost-effective for you.
2. Select Add-ons that You Require
Add-ons are designed to provide additional financial protection, at an extra cost. The preferences and requirements that are unique to you should be considered before purchasing add-ons.
Not all add-ons are important, so choosing wisely the add-ons that are necessary like bumper-to-bumper car insurance cover or engine protection cover, can help you lower the premium cost while providing you with adequate financial coverage.
3. Be Wise in Selecting Deductible
The IRDAI sets the amount for compulsory deductible, while the amount for voluntary deductible in car insurance is up to you to choose. If you opt for a higher voluntary deductible, your premium cost will be lower, but you have to spend a lot from your pocket when raising a claim, so decide wisely.
4. Try Not to Make Claims for Minor Damages
It will not cost much to repair minor damages, like a small dent or a scratch, caused by another car. It may not be a good idea to raise a claim for such minor damages, as it can prevent you from getting a No Claim Bonus when renewing your policy.
Therefore, it is best to avoid filing a claim in case of minor damages and pay for the repair from your pocket, so that you can save a bigger amount when renewing your car policy.
5. NCB Transfer is a Must
If you are planning to replace your old car with a new one, you have to purchase a new car policy for your new vehicle. It is also possible that you would want a new insurer for your new car. In such a case, you can ensure a car insurance premium decrease by transferring your No Claim Bonus to your new car policy from your old one.
6. Add Anti-theft Devices
Another tip on how to reduce auto insurance premium rates is by adding anti-theft devices to your car to ensure its safety. The safety of your vehicle matters a lot to the insurer. For example, installing anti-theft alarms or gear locks that are ARAI-approved will lower the chances of your car getting stolen. Additionally, it will qualify you to get a discount on your policy premium.
7. Opt for Membership in an Automobile Association
Again, you can opt to become a member of a recognised automobile association for reducing auto insurance premium rates on your policy. By becoming a member of associations like the Western India Automobile Association or the Automobile Association of India, you can qualify for a discount on your policy premium.
8. Keep Your Policy Up-to-date
Renewing your car policy on time is a must to continue enjoying financial coverage without any gap. Moreover, it is highly likely that your insurance provider will increase the premium amount when renewing a lapsed policy. Also, delayed renewal can lead to losing out on the NCB discount.
9. Choose Long-term Insurance Plans
When you opt for long-term insurance plans, you get to lower the premium cost as reputed insurers offer savings on premium rates if you engage in long-term business with them. Additionally, you will save money on annual renewals and avoid the hassle of timely policy renewal.
Conclusion
An understanding of the factors influencing premium rates, making smart decisions and being proactive will help you lower the premium rate. Implementing these strategies will ensure proper coverage for your car while cutting down the premium cost.
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