ExecutiveChronicles | 5 Tips to Reduce Car Insurance Premium Rates | The Indian government boosted third-party auto insurance costs last year (IRDA). As a result, the cost of auto insurance has gone up by 25–40 percent, depending on the vehicle’s engine size. It has risen by 5–6 percent in automobiles with an engine capacity of 1,000cc and by 15–20 percent in cars with an engine capacity of more than 1,500cc in the overall price of private vehicles. Insurance premiums can be reduced even though the regulator sets the third-party premium amount.
In this post, you will know about the ways you can lower your vehicle insurance premiums.
The voluntary deduction should be raised
Prior to insurance coverage kicking in, you must pay a certain amount toward repairs or claims as a deductible. At the beginning of your insurance or renewal, you can select a voluntary deductible value, and the higher this number is, the lower your premium will be.
Recall that a higher deductible should only be used if you can afford it. It is not at all a good idea to put a large deductible out of your reach to minimize your annual premiums.
If you have a claim for Rs. 20,000 and a voluntary deductible of Rs. 15,000, you have a total of Rs. 25,000. For example, if your yearly insurance premium were Rs. 15,000, it would be cut to Rs. 12,000. A claim would cost you Rs. 15,000, while your insurer would cover the remaining Rs. 5,000.
No claim for nominal costs
To qualify for a no-claims bonus, you must not file any claims for two years. It’s a big deal to get a premium discount of this magnitude.
Do you want to take the chance of losing it by claiming costs you can afford to pay for them with real money? From the beginning, go backwards in the sequence of events.
Instead of using your NCB, you should pay to have your car repaired if the cost is less than what your NCB could be worth.
Your premium will almost certainly be triple what you paid at the beginning of your policy if you claim to have earned a good discount. All your efforts to save money and drive safely may seem like a waste of time and effort.
The opposite is true! To safeguard your discount, you can always use the no-claim-benefit-protector to set your discount percentage to the previous year.
Transfer your NCBs
You only need to remember that when selling your old car to buy a new one is to transfer your NCB.
Remember that your NCBs are linked to you, not your insurance policy or car. Your insurance carrier will provide an NCB certificate if you notify them of the need for an NCB transfer.
It’s okay if you don’t plan to buy a new car right away after selling your old one because you have three years to transfer NCBs when your motor insurance ends if you don’t intend to.
Shop around for insurance and pay for it online
A certificate to facilitate the transfer can be obtained by notifying your insurance provider of your need for an NCB transfer.
It’s okay if you don’t plan to buy a new car right away after selling your old one because you have three years to transfer NCBs when your car insurance ends if you don’t intend to.
Why are we not able to get auto insurance via the internet?
After all, you have no reason to doubt that your word would be honored. When you go online, you get what you see and read. If you acquire car insurance in Cicero online, you won’t have to fill out the lengthy forms that you would typically have to fill out. Many insurance companies provide special rates and incentives for those who purchase their insurance policies online.
Condensed internet purchasing solutions are popular with clients because they are simple and easy to use. Users can compare and select the most appropriate car insurance policy for their personal needs.” Is there anything left to persuade you that making an online purchase is a smart move?
Joins the AAI or WIAA
Members of these organizations are likely to be already aware of this. An automobile association in India, as well as one in Western India, is entrusted with enforcement powers by the Motor Vehicles Act and its regulations. You can save money on your insurance by joining one of these organizations.
Because they’re considered safe drivers by most people, they’re given a reduction in their premiums. Joining one of these organizations and exercising caution behind the wheel will make you feel special.
Everybody dreads having to pay too much for their auto insurance. The tips mentioned above can help you wisely save money. Make every effort to drive safely and by the law. Don’t overlook the importance of reading the policy’s terms and conditions before purchasing the coverage.