Team AckoJul 22, 2021
People love the word ‘discount’ and look for it while buying any product. Discounts can be earned in various ways, for example season sales, clearance sale, holiday specials, etc. However, you might not come across these terms while buying a car insurance policy.
Even if there is hardly any car insurance discount sale, you can still manage to reduce the cost of car insurance premium by applying some basic tactics. In this article, we will discuss how you can reduce the cost of car insurance in 2020.
Sometimes we tend to procrastinate and do not complete things until the due date. This may not be fruitful in terms of buying car insurance. It might look like a simple task of policy renewal but can leave you underinsured in the time of need if you do not pay attention to what you are buying.
Remember to always renew your policy at least 7 days before its expiry. If you fail to renew car insurance after the expiry date or even after the grace period, you might have to buy a fresh policy and it might cost much more.
When you buy a comprehensive car insurance policy and do not raise a claim, you get a discount called the No Claim Bonus (NCB). The discounted premium will be automatically calculated when you renew your car insurance policy.
The best chance of getting the NCB discount is by not raising any claim and this can be achieved by driving safely. Caring for your safety and that of others will result is saving money on your car insurance policy. Another factor is following traffic rules. Your insurer will support you only when no rules or laws are broken.
IDV stands for Insured Declared Value. You need to set an approximate valuation of your car while buying a comprehensive car insurance policy. One does not need to set the IDV while buying third party car insurance. IDV is nothing but the approximate current market value of your car.
It is important to set the correct IDV as it may affect the amount of premium for your insurance policy. Setting a higher IDV will unnecessarily increase the premium and setting a low value will affect the claim amount.
Paying for minor damages will help you avoid raising a claim for minor issues. You can keep your NCB intact if you bear the cost of minor repairs. This is because, the moment you raise a claim your NCB will reset to zero and you won’t get any discounted premium on your next car insurance renewal.
On the other hand, do not hesitate to approach your insurer in case of major claims. Else it will defy the purpose of buying car insurance. To be on the safer side, consider buying the NCB Protect add-on to keep the discount intact in spite of making a claim.
Buying car insurance online will give you benefits like lower premiums and an opportunity to compare products. This might not possible while buying car insurance offline e.g. from an insurance agent. Comparing car insurance policies manually is a tedious task and many important points of comparison gets overlooked.
When you compare car insurance online, you can use tools that help you compare various policies within a few clicks and present the most important points of comparison like coverage, services, and price. Nowadays, buying your policy online is easier than the offline process, simply enter your details, compare plans, review coverage and make payment.
Your car insurance company may allow a discount on the premium for installing a security device in your car. As doing so reduces the chances of a theft claim. You will have to make a one-time investment for buying an anti-theft device, but it will help you earn a discount on every subsequent car insurance renewal.
Insurers prefer devices that are certified by the Automotive Research Association of India. Thus, make sure that you invest in the right device before approaching your car insurance company about the discount.
There are two types of policies available in India – Third party car insurance and Comprehensive car insurance. You need to understand the features and benefits provided by both types of policies and then decide which one to go for. This will help you avoid any unnecessary expenditure and you will save money on car insurance.
Remember to read the terms and conditions, coverages and exclusions, etc. related to your car insurance policy before making any payment.
Taking time out for buying or renewing car insurance will help you buy a policy that suits your budget. Try to avoid delaying this process until the date of expiry or beyond that as the cost of your policy may increase unnecessarily.
Want to post any comments?
93% Acko users save atleast ₹1,200 on car insurance
Car insurance starting ₹2,072*
You already have an Acko policy
Login to access your policy for this car
Health Insurance for Senior Citizens: Features, Benefits and Limitations
Team Acko Jul 27, 2021
Car Insurance Grace Period: Meaning and Importance
Team Acko Jul 26, 2021
How to change address in the two-wheeler insurance policy
Team Acko Jul 23, 2021
Top 16 Safest Cars in India 2020 With Global NCAP Rating
Team Acko Jul 22, 2021
RTO Office in Sangli (MH 10): Helpline Phone Numbers
Team Acko Jul 21, 2021
ACKO General Insurance Limited
2nd Floor, #36/5, Hustlehub One East, Somasandrapalya, 27th Main road, Sector 2, HSR Layout, Bengaluru, Karnataka - 560102
We’re socially active!
Download our app
Articles on insurance
IRDAI Registration No: 157
Category: Non-Life Insurance
The use of images and brands are only for the purpose of indication and illustration. ACKO claims no rights on the IP rights of any third parties. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms.
Trade logo displayed above belongs to ACKO Technology & Services Pvt Ltd and used by ACKO General insurance Limited under License. For more details on risk factors, terms, conditions and exclusions, please read the policy wordings carefully before concluding a sale.