Tips To Save Money On Your Car Insurance Policy

Availing a valid auto insurance policy is a mandate to ply on Indian roads as per the Motor Vehicles Act, 1988.

Availing a valid auto insurance policy is a mandate to ply on Indian roads as per the Motor Vehicles Act, 1988. While premiums for these insurance plans can put a strain on your finances, you can use a few tips to reduce the premium as well as the total insurance cost while purchasing a policy. So, if you are buying or renewing a motor insurance policy, here are some of the tips to save money on your vehicle insurance. 

Money-saving tips for your 4-wheeler insurance policy:

  • Compare the insurance premiums and coverage before buying

Before you settle on a motor insurance policy, compare through the premiums set by various auto insurance companies. Insurance premiums differ with different types of policies and also with the extent of coverage they offer.

Thus, keep the premium amount and coverage limit as a parameter when searching for the best car insurance policy that caters to your requirements. Keep in mind, as you apply add-on covers and features, the set premium amount also goes up. Besides, read thoroughly between the fine prints of the plan and then decide one that best suits you.  

  • Choose the type of coverage you need

A car insurance plan allows you to select coverage as per your requirement. You can choose from 2 categories –

  1. Third-party car insurance policy.
  2. Comprehensive insurance cover.

A third-party liability policy covers you financially against damages/injuries caused to 3rd party vehicle, property or individual by your insured four-wheeler. You can easily purchase such car insurance online. It, however, does not cover the financial losses incurred through damages caused to the insured vehicle either from natural or human-made calamities.

Unlike a third party bike insurance cover, a comprehensive two or four-wheeler insurance provides an all-round coverage. It offers extensive coverage that financially compensates for the damages caused by unforeseen expenses like fire, theft, natural disasters, and malicious activity as well along with third-party liability.

However, if the budget is more of a concern than the insurance coverage, you can opt for a more affordable option – a third party car insurance cover. It is also a legal mandate in India. 

Furthermore, think through the additional coverage on auto insurance you are about to choose. For instance, a zero-depreciation cover for new vehicles is a recommended add-on, as it improves the claim payable.

  • No-claim bonus add-on for discounts during policy renewal

Auto insurance policies are renewed once a year. If a policyholder does not claim during a policy year, he/she becomes eligible for a no-claim bonus (NCB). It starts at 20% and can go up to 50% under 5 consecutive claim-free years.

The add-on allows a rebate while you are renewing your policy. Hence, when renewing your insurance plan, you can use your existing NCB to claim premium discounts.

  • Opt for safety-gadgets installation for premium discounts

As per the IRDA rules and regulations, keeping your insured vehicle safe can also earn you premium discounts. Motor insurance schemes also offer exclusive discounts of up to 10% if a policyholder installs safety gadgets in his/her four-wheeler like ABS or anti-theft device. Hence, it not only prevents your vehicle from accidents but also lowers the premiums.

  • Renew your policy before it expires

Be it a car or bike insurance cover; a policy lapse makes you non-eligible for an NCB. You must, therefore, keep track of the expiry date and renew policy well within time.

To facilitate renewals, leading companies like Bajaj Finserv provide their policyholders with an auto-renewal procedure. It eliminates any need for setting a reminder or accidentally voiding your policy.

So, these are some of the fail-safe tips to lower down the premium of your auto insurance policy. Using these tips to avail the lowest premium for your 4-wheeler can help you save more considering owning a vehicle is a significant financial investment in itself.

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