Here are 4 tips to reduce the premium on your car Insurance

Posted by shivanikapoor on July 7th, 2017

Our government has made it mandatory to have valid car insurance at all times; this means you cannot escape that yearly premium payment. What’s more is that you can’t buy Cheap Car Insurance because you might lose out on some important coverage in the bargain to save a few rupees. But what you can do is reduce the premium amount. Now you’re probably thinking that this would again mean giving up certain benefits or coverage, right? Wrong. This article will help you reduce the premium you pay without forfeiting on any benefits and without reducing your coverage. Rather, these tips will help you pay less and save more without hindering the insurance policy in any way.

The first tip, increase the deductible you pay:

The deductible is the amount you pay towards your vehicle’s repair costs before the insurance company comes in and pays the rest. This amount is decided by you when you buy a new insurance policy or when you renew your existing insurance policy. If you decide to pay more towards your deductible then your insurance company, in turn, will agree to provide you with a lower premium and in turn, you get Cheap Car Insurance.

Let’s take an example to understand this. Say you meet with an accident where your repair cost comes to Rs. 20,000 and you have to pay an initial amount of Rs. 5,000 as deductible. And say with this existing deductible, your car premium is Rs. 10,000. But tomorrow if you agree to pay a higher deductible of Rs. 7,000 then your insurance company will reward you with a lower premium of say Rs. 8,000.

Note: These figures are only to help you understand how your premium stands to reduce. Speak to the customer care agent or a sales representative from your insurance company to get exact figures as to how much your car insurance premium stands to reduce if you pay a higher deductible.

Tip two; don’t claim insurance for small incidents:

If you don’t make claims on your insurance policy, you stand to receive a ‘No Claim Bonus’ of up to 50% on your premium. That means you only pay half of your premium and get really Cheap Car Insurance! Do you really want to forfeit this discount over a claim for a small incident? Because the moment you make a claim, your premium doubles back to its original amount. Basically, if you can afford to pay for said small damages then you should pay for them yourself rather forfeit the discount you’ve accumulated over the years.

Changed your car or insurer? Don’t forget to transfer your NCB:

Your NCB belongs to you! You’ve earned it by driving safe and avoiding accidents, and thus it's your right to take it with you, regardless if you change your car or your car insurance company. So in case you buy a new car or decide to switch your insurer, don’t forget to transfer your NCB. You can get a discount of up to 50% on the premium from a new insurer or on the new car insurance you take out. Transferring your NCB means you get cheap car insurance, even if you change your car or insurance company.

Fourth, compare premiums online:

Whether you’re buying a new insurance policy or already have an insurance policy, going online and comparing premiums is a smart thing to do. Insurance companies save on overhead expenses and infrastructure costs because you don’t physically visit the branch; these savings are passed on to you in the form of Cheap Car Insurance  policies with discounts of up to 50%. Plus if you have NCB of 50% you stand to save a considerable amount on your premium.

These are four small ways to save big on your car insurance. Tips that prove cheap car insurance doesn’t mean bad car insurance.