Top #5 Ways to Cut Your Car Insurance Premium

While I was way too excited to drive my new car, I was well aware of the additional obligations coming my way. Knowing that insurance is mandatory while driving on Indian roads, I decided to insure my car as soon as I get the possession of my car. However, with an ongoing EMI for home and car, household expenses and children’s education cost, I wanted to buy a car insurance plan which will not pinch a big hole in my pocket. So, my basic aim was to buy a car insurance which can be cheap as well as best for me.

I spoke to one of my friend who is an expert in car insurance segment. He recommended me that there are few factors which can help me lower my car insurance premium. Let me explain you the top 5 factors which can help you reduce your car insurance premium considerably.

  1. Don’t make claims for small damages
  2. No claim bonus
  3. Opt for voluntary deductibles
  4. Policy renewal on time
  5. Ensure your car online

Don’t Make Claims for Small Damages

While driving you might have a small scratch the repairs of which might cost you a few thousands of rupees. Pay such small expenses from your own pockets so that you can avail the no claim bonus on your next premium.

No Claim Bonus

No claim bonus, commonly known as NCB, is a discount offered by the insurance company for driving safely and not claiming any bonus during the insured period. This bonus starts at 20% and can go up to a maximum of 50%. The NCB is transferable. Suppose, you are availing NCB for the past 2 years and you happen to buy a new car by selling the old one. You can transfer your NCB from your old car to the new car as it is a reward given for safe driving.

Opt for Voluntary Deductibles

Deductibles are the amount of loss (caused due to the vehicle being damaged) the policy holder will have to bear from his own pockets before making a claim with the insurance company. Ideally, there are 2 types of deductibles one is compulsory deductible and other is voluntary deductible. As the name goes, a compulsory deductible is mandatory and inbuilt with the policy. The voluntary deductible can opt at the will of the person buying car insurance. The insurance company provides a discount on premiums if you opt for voluntary deductibles.

Suppose you opt for a voluntary deductible of Rs.5,000, a discount of up to 25% can be availed on the premium. Your car is damaged due to an accident and expenses come to Rs.20,000/-. In such case, the insurance company will pay 14,500/- ( 20,000- 5000 {Voluntary Deductible} -500 {Compulsory deductible}.

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Policy Renewal on Time

Renewing policies on time have its own set of advantages. First is you can claim the benefits of accumulated bonus and second is you don’t need to get your vehicle being inspected again. If your policy lapses, it is same to like buying a new policy with the premium being calculated again and the vehicle being inspected.

Ensure Your Car Online

Online buying of insurance is trending these days. You can compare plans of the various insurance company and select the one which suits you the best. 24/7 customer assistance, hassle free, paperless and convenient is some of the benefits of buying online. Also, you can get great discounts at the time of buying the insurance plan.

Above points when looked upon carefully can ensure you get the best suitable car insurance plan. After getting my new car, I insured my car at some great discounts. You should also take the above points into account before insuring your car.  

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