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.
Tips To Decrease The Cost of Car Insurance Premium:
1. Renew Car Insurance in Time:
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.
2. Drive Safely:
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.
3. Set the Right IDV:
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.
4. Pay for Small Claims:
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.
5. Compare and Buy Car Insurance Online:
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.
6. Install an Anti-theft Device:
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.
7. Buy the Correct Type of Car Insurance Policy:
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.
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