You might have poured in all your hard-earned money in purchasing a new car. However, now, EMIs have made life much more comfortable. With this option, anyone can afford a car today. In India, bad roads and traffic are a huge problem and renewing your car insurance is necessary to avoid huge expenses in case of accidents.
People hesitate to buy insurance due to the rising premiums. But, you can still manage to reduce your premium to a considerable amount without any significant compromise on your policy. Listed below are five ways how you can do the same:
- Renew your policy before it expires
Renewing your policy is the most basic way. If you miss out on the insurance renewal of your policy before it lapses, then you must purchase a new policy. For this, your vehicle will be inspected, and you will also lose the NCB (No Claim Bonus), if your policy has not been renewed post its expiry as well as the grace period. If there’s no NCB, it means you won’t get any concession on your policy.
- Do not make claims for small expenses
If you do not make a single claim for consecutive years, then NCB allows your premium to get a concession, which will help you save a good amount. Avoid claiming small expenses such as a small dent to your car. You would not want to let go of the bonus by claiming a negligible amount. If you make an insurance claim, you might have to pay a hefty amount for the premium next year, as you’ve lost the accumulated bonus. Therefore, always think twice before you claim a small amount.
- Compare policies online
Nowadays, people prefer buying everything online. From buying groceries, home decor to electrical appliances, everything is just a click away. You can easily compare the best deals on different websites. Same way, you can buy insurance policies online. Buying insurance online is helpful because you can compare premiums of different insurance companies and choose them based on reviews, popularity, premiums, claim settlement ratios, etc.
- Transfer your No Claim Bonus (NCB)
NCB is linked to you if you have the insurance policy and not the car. If the NCB gets accumulated for the claim-free years, you will get all the benefit. It is also transferrable if you buy a new car after selling your old one.
Get an NCB certificate for your vehicle from the insurance company. This will help you get a concession when you buy car policy.
- Mention correct IDV (Insured Declared Value)
The value declared for your car by the insurance company is known as the IDV. It is that amount which your company will pay if there is any case of theft or complete damage to your car. You would, of course, want anexcellent IDV and won’t consider depreciating it every year, which impacts the premium of your car insurance policy. To optimize your premium, mention the correct IDV of your car.
Always remember to mention correct and accurate information to the insurance company. The premium of your vehicle insurance is impacted to a considerable extent by details mentioned above. If you keep all the points in mind, renewing your car insurance policy won’t seem like a task anymore.