10 tips to get discounts on car insurance

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28 Mar 2023

Read about 10 tips to get discounts on car insurance. For more information, check out the car insurance policy from Kotak General Insurance.

The Motor Vehicle Act of 1988 makes car insurance compulsory for every car that runs on Indian roads. While third-party insurance premium rates are set by the IRDAI, it is the own damage that can be a little heavy on the pocket. But when you love your car and want to cut down on any unforeseen repair expenses, it is only prudent to invest in car insurance that offers overall coverage for your car. Therefore, a comprehensive car insurance policy is recommended.

If you are planning to get car insurance and are looking for a car insurance discount, here are a few simple tips that can help in getting the coverage you need that too at an affordable price.

1. Renew your car insurance before the expiry:

To avoid any last-minute hassles, always make sure to renew your car insurance online before it expires. Don't procrastinate and wait until the due date, as it can be a risky move. If you fail to renew in time, you may have to purchase a new policy, which can be more expensive and a lengthy procedure.

2. Set the correct Insured Declared Value (IDV):

When purchasing a comprehensive car insurance policy, it's essential to set the correct Insured Declared Value (IDV), which is an approximate valuation of your vehicle. Setting a higher IDV than the actual market value of your car will lead to an unnecessary increase in the premium amount, while setting a lower IDV will adversely affect the claim amount.

3. Consider installing an anti-theft device:

Installing a security device in your car can significantly reduce the risk of theft and help you earn a discount on your car insurance premium. Although you'll need to make a one-time investment in buying an anti-theft device, the protection it offers, as well as the cost savings from discounted premiums at every renewal, will make it worthwhile.

4. Adjust the deductible:

Ensure to adjust the deductible when purchasing a new car insurance policy. If you have confidence in your driving abilities, consider selecting a higher deductible, which will result in a reduction in your premium.

5. Get the riders that feel necessary:

Although riders can be useful, they come at an additional cost, so it's crucial to evaluate which ones are genuinely necessary. Avoid purchasing riders that you don't require, as this will help lower your overall motor insurance expenses.

6. Choose the right type of car insurance:

In India, there are broadly two types of car insurance policies- third-party liability insurance and comprehensive insurance. To prevent any needless expenses and save money, it's crucial to comprehend the characteristics and advantages offered by each type of policy and choose the one that suits your needs.

7. Use your NCB:

When renewing your car insurance, make sure to utilise any No Claim Bonus (NCB) you have accumulated. NCB can considerably reduce your total car insurance expenses.

8. Consider joining a registered automobile association.

If you're planning to get a car insurance policy, joining a registered automobile association is worth considering. Being a member of such associations often makes you eligible for a car insurance discount.

9. Avoid raising claims for minor problems:

To maintain your No Claim Bonus (NCB) and avoid resetting it to zero, it's wise to pay for minor damages rather than raise a claim for them. By bearing the cost of minor repairs, you can keep your NCB intact and receive a discounted premium during your next car insurance renewal. However, in the event of a major claim, don't hesitate to approach your insurer.

10. Drive carefully:

When you have to buy car insurance online, you may realise that your driving habits can also influence your insurance premium. A reckless driver who has had a number of road accidents or made a number of claims in a year may have to pay a higher premium. Driving carefully thus can help you to find the most affordable premiums.

Conclusion

By following these tips, you can decrease car insurance premiums during the policy renewal process. This will help you to renew their policy on time without putting any financial strain.

Visit Kotak General Insurance for More Information.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.