In India, having a valid car insurance policy is one of the prerequisites to take your car on the road. As per the Motor Vehicles Act, driving without an insurance cover is a punishable offence. If you are caught by the traffic authorities without an insurance policy, you would be liable to pay a hefty fine, face imprisonment or both.
Apart from abiding by the traffic rules, it is important to have an own damage insurance along with a third-party car insurance cover to get financial protection against the losses you may face due to your involvement in a road accident. If you have a comprehensive policy, the insurance company will compensate for third-party liabilities, and damages to your vehicle both. Although the premium for comprehensive policy is slightly higher than third-party insurance, it can help you save a lot of money during a mishap like accident, loss or theft of the vehicle, etc.
Many car owners in India avoid buying or renewing their car insurance policy mainly because they think it is expensive. However, car insurance renewal does not always cost a bomb. You can use the below tips and save a significant amount while renewing your four-wheeler insurance policy.
Review the add-ons in your policy
While buying a car insurance policy for the first time, you may have purchased a few add-ons to get additional protection against specific risks that your regular policy does not cover. However, with every add-on you buy, your premium increases. So, when you renew car insurance online, review the add-ons you have, and determine if you really need them. Being prudent with add-ons is the key to renewing your car insurance at an affordable price.
Install anti-theft devices in your vehicle
If you have installed anti-theft devices that are approved by Automobile Research Association of India (ARAI), you must inform the insurer about it and you can save money on your insurance premium during renewal. Nowadays, many insurance companies encourage these devices as they help in preventing theft and reduce the likelihood of them filing a claim. Thus, installing an anti-theft device in your car provides a win-win situation for both the insured and insurer.
Use the NCB to your advantage
No Claim Bonus or NCB is a discount that you are eligible to get if you don’t file a single claim in policy year. The discount increases with each claim free. All insurance companies allow you to carry forward the accumulated rewards, and you can use it during renewal and get an attractive discount on the premium rate.
So, it is better to avoid filing a claim for minor repairs and damages. This will help you maintain your NCB and you can use it during renewal and get the same coverage but at a lower premium.
Compare the policies online
Perhaps the easiest and most practical way to save money on car insurance renewal is to compare the different policies provided by your insurer. Compare the plans based on the price, coverage offered, and other benefits.
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Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.