Car Insurance Due for Renewal: Tips to get Cheaper Car Insurance
Mr. Sharma is a Software Developer; he is right on time on payment of his EMI for his home and vehicle loans but somehow shows a lax approach to get his car insurance renewal done before its due date. It’s not about just Mr. Sharma but millions of motorists have this approach regarding their car/bike insurance renewals.
Many of us are unaware that we can pay a reduced premium on renewal of car insurance policy, therefore let’s discuss the ways in which we can avail discounts on the car insurance premium amount.
- Online Renewal of Car Insurance Plan
With a large number of people getting their car insurance renewed online, digital payments for insurance plans is the way to go in future. Many insurers are offering discount on the premium whenever their customers are buying/ renewing their car insurance plans online. Renewal of insurance plans online also helps you save on the time and effort.
- Calculating Correct Insured Declared Value
Insured Declared Value is the maximum sum assured for your car, it is basically the market price of your car after reducing the depreciation, IDV is paid to you in case your car is damaged beyond repair or is stolen. IDV has a high impact on the calculation of insurance premium. IF IDV is higher, the premium would be higher; therefore calculating a correct IDV would help you in reducing the premium for your car insurance plan.
- Encashing Accumulated No Claim Bonus
If you have not made a claim then you are entitled to No Claim Bonus, you can make use of the accumulated No Claim Bonus by getting a discount on the car insurance premium. You can get a discount upto 50% on completing 5 claim free years.
- Opt for a Higher Voluntary Deductible
A deductible is the amount that policyholder would have to pay in event of aclaim, the rest of the claim is paid for by the motor insurer. Therefore if you choose a higher deductible you would be able to reduce the premium that is charged for your car insurance policy.
- Installation of Anti Theft Device
When you install security devices like Anti Theft Device, you are enhancing the security of your car/two wheeler; car insurance company can reward you for this act by reducing the premium for your car insurance plan.
- Timely Renewal of Insurance Plan
If you miss your car insurance renewal deadline and are not able to renew even after 90 days then your No claim bonus become Zero , therefore renewing your policy will help you save on the NCB.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
S. Gopala Krishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopala Krishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.
Mr.S. Gopala Krishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process."