10 Smart Ways to Reduce your Car Insurance Premiums

Smart Ways to Reduce your Car Insurance Premiums, how to reduce car insurance premiumSmart Ways to Reduce your Car Insurance Premiums

Car prices in India are going up day by day. Maintenance charges are sky rocketing year on year. Car Insurance premiums on other hand are also increasing year on year. Can we reduce car insurance premium? You should know various factors which would affect your car insurance premiums so that you can take maximum benefits and reduce your car insurance premiums. In this article, I would provide smart ways on how you can reduce your car insurance premium.

How you car insurance premium is calculated?

Before jumping on how to reduce car insurance premium, you should how the premiums are computed. There are few things which would affect your car insurance premium: a) Vehicle related: Which includes year of make, fuel type, capacity etc. b) Location related: Vehicle registration place. During renewal of insurance, depreciation would be deducted and car insurance value is determined. Based on the value of the car, insurance premium would change. C) Add-ons in your car 4) Benefits what you get from car insurance.

Also Read: Bharti Axa Car Insurance Plan comes with low premiums – Should you buy this plan?

Smart Ways to Reduce your Car Insurance Premiums

1) Add ons in the car, premium increases

Your car insurance premium is generally computed at basic level coverage based on vehicle value, vehicle age, fuel type of vehicle. Any addition such as LPT fittings or CD player or ultrasound sensors etc., added, would alter your car insurance premium. Try to reduce as much Ad-ons as you can while taking car insurance.

2) Premium depends on location

If you are staying in theft area or area where crimes rate is high, your car insurance premium rates would be high. Check the possibility of taking car insurance policy in a location where you would not pay high premium due to this.

3) Special Benefits would increase premium

If you like to opt to special benefits like Road side assistance in case of vehicle failure, then your premium increases. Consider them only in case you frequently go on long drive. If you just do City drive or drive in your towns, no need to opt for such special benefits.

4) Adding insurance for personal belongings

If you are adding insurance for theft of personal belongings, car lock, music system etc., this would add to your insurance. Try to reduce as much as you can.

5) The more you do not claim, the more you would get No claim bonus (NCB)

When you do not have any claim in a year, you are eligible for no-claim bonus in subsequent car insurance premiums. Many insurance companies offer 30% to 50% deduction from premiums if you are not claiming for more than 3-5 years continuously. Stick to one insurance company so that you can benefit from NCB. Even in case you are having small claim, pay your own money instead of claiming from insurance company so that you are entitled for high NCB in long run.

6) Safety and Anti-theft features reduces premium

If your vehicle is having safety and anti theft features like airbags, anti-lock brakes, it would help you to reduce car insurance premiums.

7) Don't leave Policy to Lapse, this increases premium

You should avoid policy lapses. Insurance companies can disqualify the discounts and benefits you may receive from further renewal of insurance premiums.

8) Online car insurance plans come cheap

These days majority of the insurance companies are offering online car insurance plans which comes with less premiums comparing to offline policies. These can be easily taken online and renewal can also be done with simple steps.

Also Read: Among Deisel and Petrol Cars, which one should you prefer?

9) Same insurance company, multiple policies, reduces premium

If you are having some other policies with same insurance company, they would offer discounts / benefits which would help you to reduce car insurance premium.

10) Compare car insurance plans before you buy

There are a few websites like policybazaar.com, bankbazaar.com etc., which offers comparison of car insurance plans and their benefits. You should compare the premiums and benefits before taking the car insurance policy.

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Smart Ways to Reduce your Car Insurance Premiums

Suresh KP

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