Tips to Reduce Car Insurance Renewal Cost
Insuring a vehicle is a mandatory requirement as per the Motor Vehicles Act, 1988. Every car owner in India has to possess a valid car insurance policy in order to legally drive on the Indian roads. The car insurance policy is generally valid for a period of 1 year, post which the policy is subjected for renewal. The vehicle owner has to pay a renewal premium at the time of policy renewal. However, very often vehicle owners end up opting for inappropriate coverage in order to save on the premium. If you’re looking to save on car insurance renewal cost, then below are the tips that will help you save on car insurance renewal cost.
Avoid the policy to lapse: Always try to avoid buying the car insurance policy from getting lapsed as then the insurance company won’t offer you any discount or additional benefits at the time of renewal. If you do not renew your car policy on time, then you can lose out on the no claim bonus as well.
Make use of the accumulated no claim bonus: Car insurance companies offer you rewards of up to 50% on car insurance renewal premium for making no claim in one policy year. The reward offered in the first year is 20% and ranges to up to 50% in five consecutive years of no claim. Always check on the no claim bonus as this reward can give you a good benefit of decreasing your premium.
Avoid doing any modifications: It’s obvious you may think of improving the aesthetics of your car by doing modifications such to the wheels, car interiors, , etc. may sure give your car a good look. But this can eventually lead to an increase in the car insurance premium as the cost of repairing such parts is also high. So if you wish to save on premium, it is imperative that you avoid doing any additional modifications to the same.
Do not make any claim for minor repairs: You will lose out on the no claim bonus if you make a claim in one policy year. Insurance companies do not offer you any reward if you make one claim in the policy year. The no claim bonus is a reward offered by the insurance company to the policyholder for every claim free year. NCB can go up to 50% for making no claim for five consecutive years. Hence, in case of minor repairs, ensure that you do not make any claim as you can lose out on the NCB which can directly have an impact on your renewal premium.
Renew the car policy online: Insurance companies offer you discounts of up to 70% on renewing car insurance online as well as offline. Hence, rather than buying the policy from any middleman, it is wise that you directly purchase the policy from the insurance company online.
Opt for long-term insurance policy: One of the best ways to save on car insurance renewal premium is to opt for long-term cover. You can opt for either long-term third party insurance cover or long-term comprehensive cover that is valid for up to 2-3 years.
The above tips and tricks will help you save on your car insurance renewal premium easily. With this, also ensure that you always carry a driving license, insurance papers, PUC certificate and registration certificate and do not drink and drive to avoid any claim rejection in the future.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.