Tips to save-on your car insurance renewal

premium

Car insurance policy safeguards you and your car from any

untoward incident and legal liabilities. Hence, it is essential to

remember your car insurance renewal date and pay the

renewal premium timely. However, before renewing your

premium with the same insurance provider do pay heed to the

following tips so that you do no land up paying more premium

than required.

Accurate information: If you provide accurate information of

the details demanded by the insurance provider you can save a

good amount.

Make and model of your vehicle: The model type of your car is

quite important in the calculation of the premium. If as per the

insurer, the model type of your car is prone to road-accidents,

then the renewal premium of the car would be higher.

No claim bonus (NCB): The premium consists of two parts; own

damage and third party damage. NCB is offered on the “own

damage” part of the premium. It refers to the discount being

offered (in percentage) on the renewal premium for not

claiming any insurance over a policy year. The NCB amounts to

20% discount in the second policy year and can mount up to

50% discount in the sixth policy year. However, if a claim is

made within a policy year then the NCB discount is not

applicable. Read more here: Third Party Insurance.

Deductibles: Deductibles are directly proportional to premium

discount. Deductibles are of two types: Voluntary and

Compulsory. In both types of deductibles, certain amount of

monetary loss has to be borne by the insured while filing a

claim. Though deductibles reduce your premium but in case of

damage you may have to shell out a hefty amount from your

own pocket.

Avoid claims for minor damage: The more claims you file, the

more would be your next premium. Hence, if you car

encounters minor dents or scratches avoid filing a claim as this

would result in higher premium in next policy year and you

would also lose NCB discount in the subsequent policy year.

Think rationally, as there is no point in filing a claim if the repair

cost of minor damage is negligible.

Installation of safety devices: If you car has safety devices

installed by a reputed company considered by your insurer, you

can further avail some percentage of discount on your

premium. The safety devices like anti-theft locks or airbags

provide protection to your car and also help you reduce your

car insurance premium.

Keeping the above factors in mind would be beneficial for you

as there is no escapism from buying insurance as third-party

insurance is mandatory in our country but these factors would

help you lower your premium to a great extent.