Effective Ways to Reduce Car Insurance Renewal Premium

Reduce Car Insurance Renewal Cost

Car Insurance Renewal

Every car insurance policy comes with an expiry date and needs to be renewed to continue availing the insurance benefits. You have to pay a lump sum to renew the policy every time. Renewal of car insurance policies has become simpler and easier due to the digitalization of the process. You just have to use your policy number to renew the policy online.

The premium of the policy at the time of renewal depends on the IDV of the bike, add-on covers opted, age of the bike, tenure of the policy and several other factors. The premium of renewal can be a burden in monetary terms. Cutting down the cost of renewal cost is a tricky business as you have to consider adequate coverage. However, there are some tricks that the policyholders may use to reduce their renewal premium.

With various auto insurance coverage together with as much motor insurance agencies on the current market, deciding on the one which satisfies your preferences at the most acceptable price could possibly be an overwhelming job.  Maintain the next five recommendations in mind to purchase a car insurance policy cover for the vehicle at competitive rates.

Here are 6 effective ways that can help you cut down the cost of the car insurance renewal.

1. Compare Before Purchase Car Insurance

It is needless to say that the comparison of car insurance policies of different insurance companies is a must before renewing the policy. You should look out for the prices, claim settlement ratio, coverage and other important parameters of a car insurance policy.

You can use many online insurance brokers to check policy from different insurers and can compare your existing policy (Car/Health/Bike) with other insurance companies. It is a wise decision to compare and choose the policy that provides maximum coverage at the lowest price.

2. Avail No Claim Bonus (NCB)

No Claim Bonus is a discount that can be availed on the premium of the renewed policy. It is offered only if you do not make any claim during the policy period of the previous insurance policy. Every insurance company offers No Claim Bonus. It can be used to avail discount up to 50% on the premium of the new policy. Moreover, if you wish to switch the insurer, the No Claim Bonus can also be transferred.

3. Opt for Online Purchase for Car Insurance

Almost every reputed insurance company has digitalized the process of purchase and renewal of car insurance policy. There are companies that offer discounts up to 70% on the premium amount at the time of renewal if the process is carried out online.

4. Stay Safe

Having safety features/anti-theft apparatus such as locks to the tyre and gear, airbags, anti-theft alerts etc.. in a car can fetch you a 5 percent reduction in your top.

Further, most people related to institutions like Automobile Association of India (AAI) or perhaps even the Western India Automobile Association (WIAA), may get exceptional rewards and discounts on premiums.

5. Avoid Car Modifications

Any modification like adding metal brakes, spoilers, etc. and more also high priced gadgets such as automotive nighttime vision, ultrasonic detectors, etc. of the car leads to an increase in the premium of the insurance policy. Thus gadgets and such alterations should be avoided if you want to maintain your premium.

In case of a modification of a car with high-valued parts, the premium automatically increases as the expense of repair of these parts would be included in the policy.

6. Avoid Claims for Small Repairs in Car

The insurance policy may or may not have limitations on the number of claims that can be made during a tenure. It is advisable to avoid making a claim for small repairs. In case, you register a claim for a small repair, you lose the No Claim Bonus.

7. It Pays to Become Loyal

If folks have several insurance coverage (in any kind ) with exactly the exact same insurer, plus so they approach the exact identical carrier for a car insurance policy, the provider supplies a reduced motor insurance premium for a dedication benefit.

8. Research Additional Discounts

Insurers offer a number of discounts. Assess for reductions such as below ones:

  • Offers to Allow You to cover the whole yearly or premium At-once
  • Agreements to Get Ebills and documentation
  • Memberships Particularly Companies or teams Offering reductions

You shouldn’t be duped by a set of discounts that were potential. Compare prices and both reductions.

So far as add-ons are involved, you can think about choosing your motor insurance riders. Though cyclists offer policy on your vehicle insurance policy that is basic, they are at another price. One of the very riders comprise NCB Protect income allowance pay, roadside assistance and zero depreciation. You buy and will assess each one’s choices.

9. Avoid Lapse of Existing Car Insurance Policy

Once the car insurance policy lapses, you lose the No Claim Bonus. Hence, it is important to remember the expiry date of your existing car insurance policy. To avail the No Claim Bonus, renew the car insurance policy before the lapse of the policy.

The renewal of car insurance policy can be pressurizing your monthly budget at times. Following these tips can reduce the expenditure of renewing your car insurance policy. You should always choose a long term car insurance policy to save on car insurance renewal premium.

Always carry a valid licence, updated PUC (Pollution Under Control) and registration certificate (RC) while driving your car to avoid claim rejection.

Watch out for auto insurance plan policy coverage firms who claim to offer ‘free’ insurance that is free just plus it can’t be customized. Bear in your mind a ‘no’ frills’ policy is the lowest when carriers consist of capabilities, as the superior goes up. Make sure before purchasing it, you’ve seen that the policy is fine print.

In Last…

I understand this is an extensive topic, and you might be having a few questions. Do utilize the comment section to ask your questions related to car insurance renewal.

Share your experience, and thought process now…

About Aditi Singh 100 Articles
Aditi Singh is an independent finance and investment advisor since 7 years and recently added with Investment Pedia. Users are welcome to put comments on her contributions.

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