Monday, October 18, 2021
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Easy Ways to Save Money While Renewing Car Insurance

Maintaining a good insurance plan for your vehicle may turn out to be immensely beneficial. While the Indian laws make it obligatory to have a proper third-party insurance in place, it is always wise to opt for a comprehensive car insurance just for the sheer peace of mind it provides. However, many a times car owners shy away from getting a good insurance just for saving a few bucks on the premium. But now, with facilities to renew and buy car insurance online, times have come for car-owners to easily save some money and yet get the best insurance coverage suiting to their needs.   

When you opt to renew or buy car insurance online, you should stay aware of some techniques to minimize your premium amount. The following tips may come to assistance:

  1. Selecting an ideal insurance plan: In ground reality, most of the car-buyers take the insurance policy suggested by their car dealers. However, it is always open for them to shift to a better plan at the time of renewal. Hence, doing a proper comparison between available insurance plans offered by various insurers is a must. One can go with the comprehensive car insurance which several insurers offer with a host of add-ons and modification options and thereby cut down on expenses. 
  2. Going the digital way: To renew or buy car insurance online, always holds an edge over physical renewal methods. The reason is, online renewals provide you with the option to analyse and weigh the various deals on offer and choose the best one. At the same time, various insurance houses provide attractive discounts on premium, on opting for the online renewal methods. 
  3. Renewal before expiry: Apart from the legal obligation for having an insurance in place at all times, a timely renewal also helps you cut down on additional costs and expenses. Delaying renewal of car insurance can lead to Non-Claim Bonus reset, or even a hike in Premium. 
  4. Choosing the proper coverage: A decisive task for any car owner is to choose between a comprehensive car insurance or a third-party car insurance. While the second one can definitely save you some money, a comprehensive car insurance can attract increased premiums. Hence, if your needs are limited, one way to cut down on expenses is to go with the third-party one only.
  5. No-Claim Bonus (NCB): NCB is one of the best parts in an insurance policy. Insurance companies tend to offer you sizeable discounts on premiums during renewal, if you have not made any claims previously. The best thing is, NCB can be transferred. In effect, if you have car insurance with one insurer, and later migrate to another insurer during renewal, your No-claim bonus accumulated during your previous insurance plan shall be transferred to the new insurer, and you can get discounts from them based on such NCB. Hence, claiming deduction of NCB is a must when you buy car insurance online during renewal.
  6. High Voluntary Deductible: In car insurance, most of the insurance providers offer an option of choosing your Voluntary Deductible (VD) amount. This VD amount is the portion of the claim, which the car owner voluntarily agrees to pay out of his own pocket. In effect, if a policyholder chooses to pay a part of the claim, that means a decrease in the insurance provider’s liability. As a result, such VD amounts always comes with a discount in premium. So, if you like your premiums to be lower, going for a higher voluntary deductible can work.
  7. Calculating Insured Declared Value (IDV) properly: IDV is the total amount which your insurer will pay to you in case there is a complete loss of your car. IDV is at par with your car’s current market value. A higher car value will give you higher IDV, but will require increased premium. Hence, it is absolutely necessary to calculate your car’s IDV at the time of renewal, because the car’s value depreciates naturally after a year or so when the insurance needs to be renewed. Appropriate IDV computation will get you discounted premiums. 

Following these points can surely help you in lowering your insurance premium and save you more money, especially if you buy car insurance online.

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