Car insurance is a mandatory expense for every vehicle owner in India, but that doesn’t mean you have to overspend on it. Many people unknowingly pay more than necessary for their insurance policies. The good news? There are plenty of smart ways to reduce your car insurance premium without compromising on coverage. Here’s how you can save big on your car insurance in India.
1. Compare Policies Online
One of the easiest ways to save money on car insurance is by comparing different policies online. Websites like Policybazaar, Coverfox, and Insurancedekho allow you to compare premiums, coverage, and benefits from multiple insurers. This helps you find the best deal that suits your needs at the lowest cost.
2. Opt for Higher Voluntary Deductibles
A deductible is the amount you pay from your pocket before your insurance claim kicks in. Opting for a higher voluntary deductible lowers your premium significantly. However, make sure you choose an amount that you can comfortably afford in case of a claim.
3. Avoid Small Claims
If your car sustains minor damages that are affordable to repair, avoid filing a claim. Frequent claims can increase your renewal premium and affect your No Claim Bonus (NCB).
4. Maintain a Good Driving Record
Safe driving not only keeps you secure but also helps you save on insurance. Avoid traffic violations, accidents, and claims to maintain a clean record. Some insurers offer discounts for drivers with a good track record.
5. Take Advantage of No Claim Bonus (NCB)
NCB is a discount insurers provide for every claim-free year, and it can go up to 50% after five consecutive years. Always check if your NCB is being applied when renewing your policy. You can also transfer your NCB when switching insurers.
6. Choose the Right Insured Declared Value (IDV)
IDV is the maximum sum assured by your insurer in case of total loss or theft. While a higher IDV means a higher premium, selecting an IDV that aligns with your car’s market value ensures that you don’t overpay.
7. Install Anti-Theft Devices
Installing ARAI-approved anti-theft devices, such as gear locks, GPS trackers, or alarms, can earn you a discount on your premium. These security features reduce the risk of theft, making your car safer and cheaper to insure.
8. Bundle Insurance Policies
If you have multiple insurance policies (such as health and home insurance) from the same insurer, ask about bundling discounts. Many insurance companies offer better rates when you purchase multiple policies from them.
9. Avoid Unnecessary Add-Ons
Add-ons like engine protection, zero depreciation, and roadside assistance increase your premium. While some may be useful, others might not be necessary for your car. Choose only the ones that genuinely benefit you.
10. Renew Your Policy on Time
A lapsed policy can cost you more in the long run. If you don’t renew on time, you may lose your NCB and might have to go through an inspection process before getting coverage again. Always renew your policy before the expiration date to avoid higher premiums.
11. Look for Long-Term Policies
Many insurers offer multi-year insurance policies, especially for new cars. These long-term plans often come at a lower premium compared to yearly renewals, saving you money in the long run.
12. Check for Special Discounts
Some insurers provide special discounts for:
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Government employees
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Defence personnel
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Senior citizens
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Women policyholders
Check with your insurer to see if you qualify for any of these discounts.
Final Thoughts
Car insurance is essential, but paying high premiums isn’t. By following these smart strategies, you can significantly reduce your car insurance costs while still enjoying comprehensive coverage. Always stay informed, compare policies, and make wise decisions to get the best value for your money.
Have any more tips to save on car insurance? Share them in the comments below!