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When you buy a car, having car insurance is mandatory as per the Motor Vehicle Act, of 1988. The coverage that your car carries can offer a lot of help when it comes you managing the damages that may occur in an accident. While you may not be able to do away with insurance, you can surely reduce the premium that is to be paid.

Here are some easy ways to reduce the premiums during your car insurance renewal:

1. Avoid small claims and reap the sweet fruit of NCB

No Claim Bonus is a discount that you accumulate on your premium when you do not make any claims during a policy term. The bonus starts from 10% and can go up to 50% over the years.

2. Choose a higher deductible to reduce the premium

The amount of your claim that you agree to pay out of pocket is known as the deductible. Car insurance companies let you choose a higher deductible over a lower insurance rate discount. If you do not file a claim before the expiration of the policy, you wind up saving money when your car insurance is renewed since you pay less.

3. Anti-theft devices can serve dual purposes

Having ARAI-approved anti-theft devices installed in your car can help you get a 5% special discount while covering your car against theft at the same time.

4. A longer policy coverage means more discount

Your insurer may offer you a discount when you buy a multi-year policy for your car. The premium and tax that you pay are decided based on today’s price and you get protected against future price hikes.

5. Make sure you weigh all the available options

While purchasing a policy, make sure to compare all the insurance options available by different companies. Weigh their benefits and premium side by side to decide which option will be best for you.

6. Reduce your car’s IDV

The Insured Declared Value (IDV) of your vehicle is used by insurance providers to determine your car insurance renewal premium. Insurance companies permit you to determine your own IDV as long as you follow certain guidelines. You can lower your IDV if you desire affordable premium prices.

7. Opt for the most basic insurance cover

Purchasing the most basic insurance, that is the third-party liability cover makes you abide by the legal mandate of having car insurance while also reducing the premium rate.

8. Don't go for unnecessary add-ons

Your car insurance premium can be under control when you choose only the necessary add-on covers.

9. Avoid too many modifications in your car

Car modifications such as alloy wheels, spoilers, and other pricey accessories such as automotive night vision, ultrasonic sensors, etc may result in a larger premium. So, if you want to keep your premium low, it's best to make minimum modifications.

10. Prefer buying car insurance online

Purchasing car insurance online cannot just save you time and effort but money too. Since no agent commissions are involved, insurance firms can pass that benefit on to you directly with lower premium pricing. You can also benefit from online deals and discounts.


While it is a smart practice to try reducing the car insurance premium, you need to keep in mind that lower premiums also mean lesser coverage. Therefore, make a well-informed decision.

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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