Smart Ways To Reduce Premiums During Car Insurance Renewal

Smart Ways To Reduce Premiums During Car Insurance Renewal

How To Reduce Premiums During Car Insurance Renewal?

Due to rising costs, vehicle owners may need help paying the premiums for their car insurance policies. Here are some suggestions when renewing a policy to lower premium costs. ##

Suggestions To Lower Renewal Premiums For Car Insurance

  1. Utilising The No Claim Bonus

Car owners can benefit from No Claim Bonuses (NCBs) provided by many car insurance companies as a reward for not filing a claim during the policy’s term. This allows policyholders to receive a premium concession of up to 50% when renewing their policies. To maximise this benefit, it’s advisable only to file a claim for significant damages and cover minor expenses like light scratches, dents, or busted headlights out of pocket. Remember that NCBs are available when you do your car insurance renewal before it expires. *

  1. Considering Deductibles

The policyholder must pay a portion of the claim out of pocket when a vehicle suffers a loss. A deductible is a percentage that comes in two flavours: voluntary and required. The premiums are significantly reduced when the voluntary deductible is raised.

For instance, the claim amount would be Rs. 18,000 if the damage required Rs. 20,000 in coverage, and the deductible was Rs 2000. As a result, policyholders will be responsible for paying the cover’s premium. However, the claim amount will increase to Rs 15,000 if the deductible is Rs 5000. As a result, the premium for that policy is further reduced.

So, it is clear from this illustration that people may pay lower premiums if they think about raising the voluntary deductible. #

  1. Adding ATDs (Anti-Theft Devices)

Anti-theft devices (ATDs) are deterrents to theft and help locate stolen or lost four-wheelers. Vehicles without these devices face a higher risk of break-ins, leading to increased insurance premiums. However, installing ATDs indicates a commitment to enhancing security, reducing the vehicle’s risk profile and lowering car insurance costs.

  1. Ensuring timely renewals

Car insurance renewal after its expiration can result in losing insurance benefits and a potential cost increase. Some insurers may demand a thorough car inspection report when renewing an expired policy, which can impact the policy’s expense. Additionally, No Claim Bonuses (NCB) are only offered to policyholders who renew before their policies expire, leading to substantial premium reductions. To enjoy these advantages, policyholders should renew their policies promptly with minimal paperwork and a few clicks. *

  1. Choosing A Suitable Cover

There are many different motor insurance options on the market. Therefore, making the right choice is essential for providing adequate coverage. People can choose comprehensive coverage, which includes both own damage and third-party liability insurance for cars. *

Adding different add-on covers to a comprehensive plan allows policyholders to broaden their insurance coverage. Common add-ons like 24/7 spot assistance, engine protectors, and zero depreciation cover are valuable during emergencies. You can use a car insurance calculator to estimate the cost of premiums. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Following these recommendations can help policyholders reduce their car insurance policy renewal premiums, ensuring they can renew their coverage promptly without financial concerns. You can buy car insurance online in a hassle-free manner.

*Standard T&C Apply

##All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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