How to reduce car insurance premium cost, see tips here

Your policy premium is based on the IDV of the car. If you increase it the premium will increase and if you decrease it the premium will decrease.

Car Insurance Premium Cost: Third-party insurance is necessary in India, so one should also take car insurance for the safety of yourself and family. If you have a small car then the premium burden is not that much, but the insurance premium for bigger vehicles like SUV is much higher. There are many factors behind the premium of car insurance. The premium for K is decided on the basis of factors like vehicle type, IDV (Insured Declared Value), age of the car, engine capacity and geographic area. If you increase the IDV, the premium will increase and if you decrease it, the premium will decrease.

What is included in the premium cost:

The premium of car insurance includes cover for three things. Third party cover, which is required in India. Personal Accident cover and Odd (Own Damage) cover. If you include another rider or add-on, the premium cost may go up. To reduce the premium cost, you can take advantage of no-claim bonus and installation of some safety features.

no-claim bonus

If you do not make a single claim in a whole year, then the insurance company provides you the benefit of No-Claim Bonus (NCB). To take advantage of this, if you incur any small expense, then you should not claim for it. Suppose, if the light of your car is broken then the local mechanic will get it repaired cheaply, but if you claim for it, then the benefit of NCB will not be available. NCB increases every year, which can be up to 10-50 percent. Be sure to take advantage of this while renewing the policy.

Benefit of accumulated bonus:

When you are selling the car, you should have bought the insurance in your own name. By doing this you will get the benefit of transferring the accumulated bonus to the new car you have purchased. Remember, car car insurance buyer is associated with the individual, not with the car.

Use of Deductible:

You can use the deductible amount to reduce your car insurance premium when you make a claim. But, pay as much as you can, if you pay too much, the purpose of insurance is defeated. There is a fixed percentage of the deductible amount, which has to be paid by the insured himself. The insured can save by paying expensive deductibles. If you pay more deductible at the time of making a claim, then your insurance company will give you a discount on the premium later.

Benefit from online:

Buying an insurance policy online is more economical as all the intervening expenses are saved. Agent, your premium gets reduced once the paperwork is completely removed. All general insurance companies provide online cover. Auto companies also offer ‘free’ insurance, but it is usually only free for the first year. If you modify the car, the insurance will not cover it.

Benefits of safety features:

It is important to install safety features in your car. You can reduce your annual insurance premium by up to 5% by purchasing a gear lock, steering lock or anti-theft alarm. If you’re affiliated with entities like the WIAA, you can take advantage of special discounts.