Buying a car is simple, maintaining it year-on-year can be a task! From spiked fuel prices, to regular servicing and repairs to even insurance – your car demands and deserves your regular attention. Now you can’t avoid these expenses, but you can save a few bucks here and there.
Let’s check out the 5 easy ways to save on car insurance.
- Compare premiums and purchase online
If you want to end up with the best plan, you should compare and choose from all possible plans available in the market. This can’t happen with a friend / agent / neighbor / colleague recommendation. Since you need to be able to choose a plan that suits your car and factors in your area for network cashless garages, switch to online car insurance. Compare quotes from all possible insurers and read reviews if you like. Comparing isn’t even a difficult task thanks to a whole host of online insurance aggregators.
Moreover, buying insurance online is cheaper too. Insurance companies pass on the benefit (of what they save in running insurance transactions online) by offering lower own-damage premium rates. Make the most of it!
- Hold on to your no-claim bonus
No-claim bonus is the discount that you accumulate over not claiming for consecutive years. This is offered at the time of renewing your car insurance policy and is applied on your own-damage premium. You can accumulate up to 50% discount for not claiming on your car insurance policy for 5 consecutive years. It starts with 20% discount for first claim-free year, 25% for two claim-free years and so on.
But the point is, this discount can reduce to zero immediately after making a single claim. So try avoiding to claim for minor damages. Weigh the odds and see if the claim is worth losing out on 50% discount for the next year.
- Set Insured Declared Value carefully
At the time of buying an insurance policy, you get to set your car’s insured declared value within a certain prescribed range. Insured declared value depreciates each year with your car’s age. Depending on how low you set the IDV, your premium could reduce too. So use this option to the best of your advantage. Do not keep your IDV too low either, because ultimately this is the value that you’d be receiving in case you had to make a claim for theft or total loss.
- Stay safe, stay happy
Insurance companies can also offer you discount for an ARAI-approved anti-theft device installed in your car. Though a minor deduction of 2.5%, it is a discount nonetheless. Speak to your insurance broker or agent to see how you could avail this discount. Make sure that you have valid documents attesting such devices in your car. Any wrong information, can trouble you at the time of making a claim.
- Renew in time
Don’t miss out on renewal dates for car insurance. It’s not just because it is punishable by Indian motors act to drive an uninsured vehicle, it’s also because of the troubles you face for delaying. Your NCB will reduce to zero, your car would have to undergo inspection. Moreover, if your car is ‘not recommended’ during inspection for some pre-existing damages, you wouldn’t be issued a renewed policy. As a result, you’d have to first get those parts repaired before reapplying for inspection and insurance. Now that’s a waste of both time and money!
So now you know the 5 simple ways to save on car insurance. Remember, that savings don’t always come in the form of discount but also in the form of avoiding unnecessary expenses. Make sure you follow our simple tips, so that your little insurance cover can help you avoid those large financial liabilities later on.