Most people regard automobiles as their most prized possession. However, car insurance renewal online or offline yearly, or paying high premiums may seem a little too much of a maintenance! However, there are ways to reduce the cost of the renewal.
Nowadays, no one wants to buy a used car. Buying a new one these days is simply because you can do so on EMI. Therefore, we see so many vehicles on the roads every day. The roads in India are very accident-prone, so it is critical to renew our car insurance on time to avoid significant expenses in the event of an accident.
Insurance is one of the wise things the government has made mandatory. People rethink purchasing four wheeler insurance due to rising premiums. Every year, the value of a car depreciates, but the insurance renewal premium does not. Prices continue to increase rather than fall as the years pass.
The following are the top five methods/tricks for lowering car insurance renewal costs:
- Policy renewal before it expires:
This is the most fundamental trick of all. You must go through the vehicle inspection process and shall lose your NCB if you do not renew your policy before it expires or within the time frame specified after it has passed. *
- Avoid claiming minor expenses:
If your car sustains a minor dent, the cost of repairing the damage can be less than the NCB accumulated, which shall help you reduce your premium rates in the future. Because you have forfeited the accumulated bonus, you must renew it the following year by paying the total premium. Only file an insurance claim when it is necessary. *
- Online premium purchasing and comparison:
Nowadays, it is easy and convenient to buy anything and everything online, from groceries to various electrical appliances. Searching and comparing prices on multiple websites is simply finding the ideal deal. Similarly, you can purchase vehicle insurance policies online.
When purchasing an insurance policy online, you can easily compare premiums from different companies and then choose based on reviews, coverage, add-ons, features, premiums, claim settlement ratios, etc. As a result, purchasing a policy online is always preferable. *
- Moving your no-claim bonus (NCB):
NCB is not associated with the vehicle but with the policyholder. The policyholder benefits from the NCB, which accumulates for claim-free years. It is even transferable if you buy a new car and sell your old one. The insurance company may issue you an NCB certificate for your vehicle. Because the NCB retention certificate is only valid for three years, you must remember to obtain one from your insurance company. *
- Including the correct IDV and other important documents:
The IDV is the value declared by your insurance company for your vehicle. It can depreciate by a certain percentage during car insurance renewal online or offline. The IDV is the amount the company can pay if your car is stolen or completely damaged. It is critical to understand your vehicle’s IDV to avoid paying an additional premium. *
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
