Ways to Lower Your Car Insurance Price: 10 Helpful Tips and Ideas

As per the Motor Vehicles Act of 1988, third-party motor insurance is a compulsion for all active vehicles in India. This means that all four-wheeler and two-wheeler owners must have at least a third-party liability insurance for each vehicle they own.

Hence, car insurance is a vital requirement for every vehicle owner in India. Apart from helping you abide by the law, it provides financial protection in case of accidents or damages. It can offer you various benefits such as personal accident coverage, zero depreciation coverage in car insurance, road assistance benefits, etc. However, the cost of car insurance premiums can be a burden for many individuals. If you’re looking to decrease your car insurance price, here are 10 effective ways to achieve that.

Compare and Analyse

The best way to go about purchasing the ideal car insurance plan for yourself is to compare multiple policies. This might seem like a hefty task at first, but it is quite simple. You can find all the information you need about different insurance plans on the internet.

All you must do is compare factors such as their premium prices, total coverage, benefits, claim settlement ratio, etc. Through this comparison, you could find a plan that offers maximum coverage at minimum premiums.

Higher Deductibles

A deductible in car insurance refers to the amount that you volunteer to cover during a claim. This amount is subtracted from the total claim amount and the value derived is the amount the insurance company shall pay.

For example, if you claimed Rs 1 Lakh for the repairs of your car. You volunteered for a 20% deductible. This means that you have agreed to pay 20% of the claimed amount (Rs 20,000). Hence, the insurance company shall cover the rest of Rs 80,000 for you. In this way, a higher deductible set at the time of purchasing a policy can help you get a car insurance price.

Multiple Plans and Cars

Did you know that you could get a discount on your car insurance premium if you buy more than one policy from the same insurer? You didn’t? Well, now you do. Some insurance providers can offer you discounted rates for your car insurance premium if you purchase other insurance policies from the same company.

A lot of research needs to be done since finding multiple policies that are ideal for you from the same insurer can be difficult. However, if this appeases you, you can wholeheartedly use this tip.

Customised Cars

If you’re an automobile enthusiast, you surely love the idea of enhancing your car’s features and looks by customising it. However, from the perspective of insurance, this might not be the best idea. Customising your car with devices like alloy wheels, automotive night vision, spoilers, ultrasonic sensors, etc. can impact your premium greatly.

This is because these modifications are very expensive to repair after damage and they are a safety hazard. Moreover, many modifications are lawfully illegal which could result in the rejection of your insurance application directly.

Safety Features

Safety features in cars refer to the built-in mechanisms and technologies designed to prevent accidents, protect occupants, and minimise the severity of injuries in the event of a collision. These features include airbags, anti-lock braking systems (ABS), traction control, stability control, and collision warning systems.

Equipping your car with safety features can help decrease your insurance premium. Insurance companies consider such safety features while determining premiums. Not only do these features provide added protection, but they also reduce the risk of theft or accidents.

Drive Safely

Road safety in India involves implementing measures and promoting awareness to prevent accidents and protect lives. This includes strict enforcement of traffic rules, improved infrastructure, education on safe driving practices, and fostering a culture of responsible road behaviour. By abiding by all road safety rules, you find that your driving record is in pristine condition.

Maintaining a clean driving record is crucial for obtaining lower insurance premiums. Insurance companies reward safe drivers with discounts and lower rates. Avoid speeding tickets, accidents, and other traffic violations to keep your driving record in good shape and enjoy reduced car insurance prices.

Less Expensive Car

One should consider not purchasing expensive cars due to several reasons. Firstly, expensive cars come with higher maintenance and repair costs. Secondly, they may attract higher insurance premiums. Additionally, the depreciation rate on expensive cars is usually higher, leading to significant value loss over time. Lastly, purchasing an expensive car can strain one’s finances and limit their ability to invest in other important areas of life.

The type of car you drive plays a significant role in determining your insurance premium. High-end luxury cars or sports cars usually come with higher premiums due to their higher replacement costs and repair expenses. Opting for a less expensive car with a good safety record can lead to lower insurance costs.

Suitable Coverage

Understand your insurance requirements and choose coverage that is appropriate for your needs. For instance, if you have an older car with a low market value, comprehensive coverage may not be necessary. Assess your car’s value and select coverage accordingly to avoid unnecessary expenses.

This includes carefully choosing the sum insured. You don’t want to add any unnecessary insurance riders since they can increase insurance premiums significantly. Moreover, try to carefully assess plans that can offer you maximum coverage at a minimum premium.

Accumulate NCB

Insurance companies offer a no-claim bonus as a reward for not filing any claims during the policy term. This bonus accumulates over the years and can significantly reduce your premium. Ensure that you renew your policy on time and maintain a claim-free record to take advantage of this benefit.

Through such no-claim bonuses, you can get up to a 50% discount on your premium for not claiming coverage for 5 consecutive years. You can add other membership discounts and benefits to this NCB to further decrease your car insurance price.

Membership Discounts

Many insurance providers offer discounts to members of recognized automobile associations or clubs. Check if you are eligible for any such discounts and take advantage of them to reduce your premium. Additionally, some insurers offer loyalty discounts to policyholders who renew their coverage with the same company.

You can join the Western India Automobile Association or the Automobile Association of India. Since these associations are listed under the Motor Vehicles Act and Rules, you will be considered a responsible driving citizen of the country as part of this club. Hence, you can claim discounts on your car insurance price.

To Put It Simply…

In conclusion, reducing your car insurance premium in India is possible by implementing these 10 strategies. Comparing quotes, opting for a higher deductible, installing safety features, maintaining a clean driving record, and choosing an appropriate coverage can all help you greatly. Not only are you able to save money through the coverage given by your insurance plan but also by saving a sizable chunk of your insurance premium.

Disclaimer : The above is a sponsored article and the views expressed are those of the sponsor/author and do not represent the stand and views of The Tribune editorial in any manner.