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How to Reduce Your Car Insurance Premium
How to Reduce Your Car Insurance Premium
Nov 25, 2015 | 318 VIEWS
Whatever car you may own, it’s always a matter of pride for you. You spend the requisite amount to maintain your car and as a part of maintenance, you also get your car insured annually to protect yourself as well as the precious wheel you own. Since, car insurance is a recurring expenditure, have you thought of ways to reduce the premium you pay towards your car insurance. As part of our endeavor to help you save more, My Insurance Club suggests 6 simple steps that have the potential to reduce the premium you pay on insuring your vehicle. 

1. Install anti-theft and safety devices

Since anti-theft devices and other safety features like air bags or Anti Breaking System are associated with increasing passenger and car safety, insurers are likely to reduce your annual premium if you have them in your car. Besides, these features will also help you keep your car safe from possibility of theft and substantially reduce the risk associated with accident. 

2. Don’t claim for minor damages 

Many amongst us have a tendency to claim insurance for minor damages. One way to look at it is when the car is insured, why not take benefits of insurance. However, while claiming for such minor repairs that are more or less frivolous, you are staring at a higher premium when you renew your policy next year. It is suggested that one should only apply for an insurance claim, if the damage is substantial and cost of repair is such that it will offset any no claim bonus that you are likely to receive from your insurer in the next policy term.

3. Make sure to avail No Claim Bonus (NCB) from your insurer 

It’s very common among car insurance buyers not to avail the NCB you are entitled from your insurer. At times you may also decide to change your insurer when your car insurance is up for renewable, in such cases, its often seen that the new insurer does not tell you that you are entitled to getting a NCB even if your car was not insured by them. Please remember that as long as you did not claim insurance in the previous year, you are within your rights to ask for NCB. For example, Bharti AXA offers discounts as high as 20 per cent, if no claim has been made in the first year. This can be increased to a maximum of 65% over a period of time. 
Additionally, you can also consider buying a no-claim benefit protector option, which locks your no claim discount level in the year where there was a claim. 

For example: You are entitled for a 30% NCB in 3 years, but if you claim insurance in the fourth year, the clock is reset and you go back to getting zero NCB. However, a no-claim benefit protector option will ensure that your previous accumulated bonuses continue to be given to you. 

4. Parking your car in a garage can help you reduce premium

Parking is a major cause of concern for car owners. Shrinking space and increasing number of vehicles have not helped matters either. Cars being parked on roads, thereby increasing the chances of damage, are a common sight. In this situation, if you have a garage, you can negotiate with your insurer and press for further discounts. Some insurers like ICIC Lombard also offer these discounts. Additionally, they also offer discounts based on your profession etc. 

5. Voluntary excess

The amount of voluntary excess you decide to shell out also has a bearing on the cost of your policy. It basically refers to the amount that you will have to pay in case of an accident. Thus, higher the voluntary excess, the lower will be the insurance premium on your car. 

6. Compare car insurance before buying

Before you buy insurance for your new car or an old one, it is suggested to compare the insurance options online. Comparing insurance online will have multiple benefits for you. It will help you: 

a. Choose from a wider pool of car insurance products
b. Save money on your insurance premium by getting the cheapest deal
c. Get detailed information on hidden costs associated with such insurance policies
d. Understand what your car insurance includes as well as excludes

 

Akshay Kumar
Akshay is the Content Manager at MyInsuranceClub. He has experience in writing on varied topics such as Insurance, Finance, Foreign Affairs, Defence and Politics. He has done his PG in Journalism from Indian Institute of Mass Communication, New Delhi

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