While many treat car insurance as a mere formality, they end up paying a lot extra. This is simply because they didn’t carry out due diligence to see how they can save on their renewal premiums. If you too are due for car insurance renewal then check out this blog to see how you can reduce your premium the logical way.
1. Optimize the deductible
A voluntary ‘deductible’ is nothing but an amount you agree to pay in case of repairs. The insurance company will pay any amount that is over and above the voluntary deductible. For example, if you have opted for a deductible worth Rs. 4500 and your total repair bills comes to Rs. 7300, then Rs. 4500 will be paid from your pocket, while the balance Rs. 2800 will be paid by the insurance company. Two scenarios where a higher deductible will work for you are – in case you haven’t filed a claim for long or have a good driving record.
2. Utilize the benefits of NCB
With No Claim Bonus (NCB) you can get substantial savings on your car insurance renewal amount. If you want to know the degree of advantage this factor holds then consider this – if you do not file a claim for 5 successive years then you can get an NCB discount of a whopping 50% of your premium payable. Our quick thought to utilize NCB – do not claim for small expenses like scratches or dents. Do note that the NCB discount is applicable only to own damage premium component and not for third party repairs.
3. Use safety and anti-theft devices
More security means lower risk of theft. Hence when you install safety and anti-theft devices you are automatically categorized as a low- risk profile. This way, the insurance company won’t have any problems reducing your insurance premium. Some examples of such devices can be airbags, anti-theft alarms and steering and gear lock. It is interesting to note that all such devices will be considered only if they are approved by the Automobile Research Association of India (ARAI).
4. Transfer your NCB
This is one the top secrets that not many car owners know. When you switch to a new car, you can transfer the NCB accumulated on an older vehicle to your new car. All you have to do is retain the insurance coverage in your own name and obtain the no-claim certificate from the insurer. This way you can reduce the premium of your new car by transferring the NCB.
5. Buy online
It may seem too good to be true, but this is actually the case. Insurance policies bought online come at a lower price than those bought offline or from a physical office/ branch location. This is because you get to see all insurance policies from different providers in one page online. This way, you can compare the features, the terms of coverage, the inclusions, and exclusions. So if you are renewing your car insurance and are looking for a new provider then do give a chance to the Internet to let you save money.
These are some of the ethical hacks that can help you save big when you go for your next car insurance renewal. Keep these points in mind, remain hassle-free from the rising premium rates, and make a smart financial move.