Car insurance, unlike other forms of insurance is a legal requirement and no vehicle owner can bypass it. While some may substitute the importance of one by safe driving, it isn’t always your fault when accidents occur. Thus, the benefits it offers are more just legal compliance.
In some cases, based on the coverage you opt for, it can even become expensive to weigh down your wallet. In such cases, it not only spoils your budgets, but also other financial plans. That’s when you start looking for various ways to save some money on car insurance. While lowering the coverage isn’t a smart move, there are quite a few different ways how premiums can be lowered when buying car insurance online or offline. This article lists down some ways of how you can avail a concession on your renewal premium.
- Using no-claim bonus
The first way how you can avail a concession on your insurance premium is by making full use of the no-claim bonus (NCB). It is that portion of premium which insurance companies offer as a markdown in your car insurance renewal premium for the previous year when no-claims are made. Such NCB is calculated as a percentage of the own-damage premium for comprehensive plans and it being a significant portion, lowers the premium largely. The range of such NCB benefits start at 20% and go all the way up to 50% for each consecutive claim-free policy tenures. You can visit the official website of IRDAI for further details.
- Renewing on time
Procrastination often leads to loss of coverage as delays in renewal occur. In some cases, policy benefits like no-claim bonus may be lost if renewed after 90 days after expiry. Thus, timely renewal ensures continued coverage with adequate carry forward of policy benefits.
- Offloading unnecessary add-on covers
Add-ons to your comprehensive policy are optional features that increase the coverage to a great extent. Since they are optional. The insurance company may offer a variety of different add-ons, but all of them may not be needed for you. Hence, at each renewal, you must check for the necessity of add-ons opted and offload the ones that are either not required or provide no additional benefits.
- Adjusting the deductible component
Another nifty way to keep a check on the premium is by adjusting the deductible component of your policy. Deductibles in car insurance are of two types—compulsory and voluntary. While the compulsory deductible is a part of standard car insurance terms, the voluntary deductible is over and above the compulsory one. If you are someone who is confident of your driving, then you can opt to increase the voluntary deductible amount which lowers the amount of your premium. But while you are at it, remember, a higher amount is required to pay from your pocket when you raise a claim. * Standard T&C Apply
- Comparing plans before buying
Lastly, do not skip on comparing the different plans so that you can pick the right policy suited for you. Comparison of different policies amongst each other helps to know how they differ, and which is the right choice based on your requirements.
The bottom line is you need to make time so that you avail all the above benefits. In this process, a car insurance calculator can come handy as it helps to compare the policies and aid your purchase decision. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.