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A key piece of maintaining a car is to opt for a car insurance policy. It not only offers you immunity from hefty traffic penalties but also protects your car and your finances during an accident. To ensure that you have continued benefits from the plan, it is crucial to renew your car insurance policy on time.

If you are wondering if there are any ways to cut down on your insurance premiums, here are a few car insurance discount options that you must explore.

1. NCB

If you do not make any claims during the tenure of a policy, you are eligible for NCB or no claim bonus. The discount can start from 20% for the first year and go up to 50% for five consecutive years.

2. Voluntary deductible

You can choose a voluntary deductible, which comes into the picture when you make any claims. You must pay this amount on top of the mandatory deductible each time you claim your policy. A voluntary deductible will reduce your car insurance premium.

3. Membership discounts

If you have a membership of either the Automobile Association of India or the Western India Automobile Association, you can take advantage of a discount on policy renewals.

4. Add-ons

If you firmly believe that there is no need to choose add-ons for a policy, you can choose not to get one. Since each rider results in a slightly higher insurance premium, not choosing any will help you slash the policy premiums.

However, it is prudent to opt for the relevant riders so that your overall out-of-pocket expenses are minimized in case of a claim.

5. Install security devices

There are a few safety devices that the Automotive Research Association of India approves. If you install any of these devices, it has dual benefits. Firstly, it enhances the security of your vehicle and accounts for a small discount on the policy premium.

6. Own damage discount

Some insurance providers offer discounts on their own damage component to drivers with good track records. Since these drivers are less likely to get into an accident, insurance providers offer them a discount.

7. Timely renewal

Renew your car insurance policy on time to ensure that you do not lapse your no-claim bonus which effectively helps you to save a significant amount of premium in the long run.

8. Choose the right type of plan:

Opting for the right type of plan will help you get a great deal for your car insurance plan. There are various plans with multiple add-ons which need to be weighed before opting for a plan which best suits your needs.

Bonus tip:

If you want to cut down on your insurance expenses, you can opt to buy pay-as-you-drive insurance. It is a relatively new type of insurance and was made available only in 2020. Should you choose this policy type, you will need to pay premiums for only the distance that you travel during a year.

People who do not drive regularly can save on premiums by choosing this policy type. However, not all insurers offer this policy type as of now. You can also avoid making claims for small repairs, which will help you save money in the form of an NCB or no-claim bonus. It will help you to lower the policy premiums for your car insurance.


Renewing a car insurance policy on time is more important than you might think. Failing to renew the policy will result in your losing coverage and, at times, even benefits such as no claim bonus. Above are some of the discounts that you can avail of while renewing the car insurance policy.

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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.


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