Home Finance How to Save On Your Car Insurance Premiums? Know the Tips to Avail Maximum Benefits

How to Save On Your Car Insurance Premiums? Know the Tips to Avail Maximum Benefits

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Car insurance for some can be steep expense. While the law makes it mandatory to buy one, there is no escape if you are a car owner. Hence, the regulator, Insurance Regulatory and Development Authority of India (IRDAI) has made a third-party car insurance as mandatory.

Third party car insurance policies are plans that offer coverage for liabilities that may arise due to your fault injuring a third person or causing damage to their property. Since it is the minimum 4 wheeler insurance coverage, its premiums are regulated by IRDAI and kept at an affordable level. You can visit the official website of IRDAI for further details. However, such coverage may not be adequate for all car owners. Hence, most of them opt for a comprehensive plan. Comprehensive plans with their broader coverage can sometime impact your insurance budget. This article mentions some tips on how you can save money while availing an all-round coverage.

  1. Compare and buy

The first tip to remember is you must swear to compare and only then buy a car insurance policy. There are myriad plans to choose from and most of them offer similar coverage. Although the coverage is similar, it isn’t the exact same. Hence, selecting a policy that offers the exact coverage based on your requirement is essential. You need to look for a policy that checks all your requirements and that too at a pocket friendly price. To compare the different policies offered by an insurance company, a car insurance calculator can come handy. * Standard T&C Apply

  1. Opt for higher deductibles

Deductibles are that component of your car insurance policy that must be paid by you, the policyholder before the insurance coverage kicks in. At each claim, such amount of deductible must be paid only after which the insurance company compensates for the loss. Deductibles are of two types—mandatory deductible and voluntary deductible. As the name suggests, mandatory deductible is compulsory in nature whereas a voluntary deductible can be opted for over and above the mandatory one. Since a higher out-of-pocket expenditure is required when you opt for deductibles, it lowers the premium amount. * Standard T&C Apply

  1. Avoid small claims

When you make an insurance claim, there are deductibles that you need to pay along with foregoing any no-claim bonus (NCB) during your next renewal. Any claim for minor repairs requires you to pay such deductible and also give up the NCB benefits that otherwise would have lowered the premium at car insurance renewal. So, you must weigh the amount of estimated repair costs and only then make a claim application. * Standard T&C Apply

  1. Drop unnecessary add-ons

Add-ons are insurance coverage that are optional in nature and available with a comprehensive plan or a standalone own-damage policy. Being optional coverage, they are not part of the standard policy coverage and hence increase the premium costs. Dropping these unnecessary add-ons from your insurance cover can help keep the premiums in check.

  1. Avoid a lapse in your policy coverage

Car insurance plans are valid for a specified duration, generally a period of one year. At each renewal, these policies need to be renewed to carry forward the policy benefits to a subsequent period and enjoy continued coverage. However, any lapse in such renewal will result in an expired car insurance plan. Moreover, if such lapse is above 90-day duration, the no-claim benefits are also forgone. Please visit the official website of IRDAI for any further clarification. Hence, make sure to avoid a lapse in your car insurance policy and renew it beforehand.

These are some tricks that help to save car insurance premiums. While saving premium is essential to maintain your motor insurance budget, do not let premium be the sole determinant in select an insurance cover. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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