Planning to buy a new car this festive season Ways to bring down your insurance costs

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04 Aug 2023

Planning to buy a new car this festive season with low insurance costs? For more information, check out the car insurance policy from Kotak General Insurance.

Festivals in India always see an increase in automobile sales, as many people love to prefer new items on these occasions. Many individuals prefer to replace their old cars or even purchase new ones to add to their garages. It makes sense that individuals look forward to festivals like Diwali or Dhanteras to purchase a car because of the discounts and fantastic deals.

In addition to deals and discounts, your car insurance premium is another vital area where you may make further savings. Whether you only have minimum liability coverage or complete vehicle coverage, it's critical to make sure you're getting the best deal available in the market, even for the car insurance renewal.

Here are some imperative tips to help you reduce the cost of your car insurance and increase your savings whether you've recently purchased a car or are going to do so during this festival season.

• Review your deductibles -

The out-of-pocket expenses that the policyholder agrees to pay at the time of a claim are known as deductibles, also known as voluntary deductions. By raising the amount of your deductible that you are responsible for paying while filing a claim, you may lower the cost of your car insurance. However, just pay what you can manage.

• Maximize the No-Claim Bonus (NCB) -

This is a reward that an insurance company gives to the client for maintaining the vehicle properly and not filing any claims throughout the year. For minor problems like a broken tail light, avoid claiming the insurance because this benefit stands invalid if you file even a small claim. Additionally, keep in mind to transfer your no-claim bonus when purchasing a new car or resorting to a car insurance renewal for an old one.

• Install anti-theft features -

It is essential to equip your vehicle with safety features. You may also cut the cost of your yearly insurance premium by 5% by purchasing a steering lock, gear lock, or anti-theft alarm. What particular features can reduce insurance premiums should be clear to you from your insurance provider.

• Opt for "pay as you drive" coverage -

The Insurance Regulatory and Development Authority of India (IRDAI) introduced the wonderful approach of "Pay as you drive" (PAYD) as a regulatory sandbox policy during the pandemic in 2020. People who work remotely, in hybrid arrangements, or don't drive frequently, should find this to be the best solution. It is a usage-based technique in which the policyholder receives a legally enforceable third-party liability insurance policy, but the personal damage component is dependent on how the vehicle is used.

Conclusion

The cost of car insurance will inevitably be going to increase in the future. However, there are several things you may do to reduce the burn. In addition to the aforementioned tips, it's important to look into the different policies and features online before making a purchasing decision if you want to save a little bit more money.


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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.