5 surefire tips to reduce car insurance premium Do you want to reduce your car insurance
5 surefire tips to reduce car insurance premium
Do you want to reduce your car insurance
premium? It is absolutely possible! Many people think that car insurance premium is a fixed price, but it is not. By adopting some smart methods, you can reduce your premium to a great extent. This will not only save you money but will also help you choose a better policy.
Here are 5 surefire tips that will help you reduce your car insurance premium:
- Make the right use of ‘No Claim Bonus’ (NCB)
‘No Claim Bonus’ (NCB) is a reward from insurance companies that you get every year when you do not make any claim on your policy. This bonus reduces your premium year after year.
How does it work? If you do not make any claim for 1 year, you get a discount of 20% on the next year’s premium. This discount can reach up to 50% after 5 years.
What to do? If your car has minor damage, get it repaired from your own pocket. Avoid claiming minor damages. This will protect your NCB and you will be able to save more money in the long run.
- Choose the right deductible
Deductible is the amount that you have to pay out of your pocket at the time of claim, only after which the insurance company pays the rest.
How does it work? If you choose a ‘higher deductible’ in your policy, your premium reduces. For example, if you choose a deductible of ₹2000 instead of ₹1000, your premium will be reduced.
What to do? Choose a deductible keeping in mind your financial situation. If you have the ability to pay some money yourself in an emergency, choosing a higher deductible can be a good option.
- Install safety devices in the car
If you install additional safety devices in your car, such as an anti-theft alarm or GPS tracking system, many insurance companies offer you a discount on the premium.
Why? Because these devices reduce the chances of theft or major damage, thereby reducing the risk for the insurance company.
- Keep your car’s IDV correct
IDV or ‘Insured Declared Value’ is the maximum amount that the insurance company pays you if your car is stolen or completely destroyed.
How does it work? As your car ages, its IDV decreases. If you want to reduce your premium, you can choose a slightly lower IDV.
What to do? Do not reduce the IDV too much, because you will get less money at the time of claim. Choose the IDV according to the correct value of your car.
- Compare policies online
Buying an insurance policy online is often cheaper than buying it through an agent, as it does not involve broker commission.
How to do it? There are many websites that allow you to compare policies of different companies. Here you can choose the cheapest and best policy according to your need.
What to look for? Not only the premium, but also look carefully at the coverage, terms and conditions of the policy.
By adopting these tips, you can not only reduce your premium but also ensure that you get the most suitable and affordable insurance policy for your car.