How to save money on Car Insurance Renewal?
Recently, the Motor Vehicle Act was updated which brings strictness in the traffic laws. One of its important aspects is an insurance policy. A Car Insurance Policy became relevant as much as following the traffic signal is. Driving a Car with insurance policy attracts some fine and penalty.
A Car Insurance Policy is an annual task in India hence the probability of missing a renewal is high as you may forget the date. Similar to remembering the date of renewal, you must explore the options to save money in premium when Car Insurance renewal is due.
Thinking of saving your money is substantial as the Car Insurance Premium may fluctuate. It happens often as :
1. There is a rise in the third-party premium.
2. Your agent suggests some additional covers like Zero Depreciation, Return-to-Invoice, and others along with the basic policy.
When you think of saving premium money, you cannot just fall prey to the system and end up paying more money than before. Rather, you should find out ways in which you can save your money at the time of renewal. Here are some ways which will help you:
If your car is very old, just choose to buy a Third-Party Insurance:
If your car is old, then choose to buy a third-party liability cover only. The reason is one TP Liability policy is mandatory as per the Motor Vehicles Act. Second, the third-party liability amount for property damage or bodily injury can be way more than you think, if there arise any such case. It will be a direct expense out of your pocket amounting to more than the insurance policy amount.
Use Car Insurance Premium Calculator:
Prefer doing this. It is good if you take an unbiased decision that is not based on someone else’s opinion. Always use a Car Insurance Calculator to calculate the car insurance premium with add-ons if any. This will give you a better idea of which cover and add-ons you should go for, you can also compare the premium from different insurers.
Claim Your Earned No Claim Bonus:
Every claim-free year under a Motor Policy will fetch you some No Claim Bonus. For the first time renewal, you will earn a bonus of 20% on your premium. The maximum percentage of discount offered by an insurance company will be 50%.
Check what other insurer has to offer?
Well before the renewal is due, you should check what other insurance company has to offer. Always compare quotes online for the same line of cover. It may help you save premium money at the time of renewal.
Make it a quick and low-cost affair. Renew Online:
You should think of contemporary ways of renewal. Online is the word and idea. When you renew a policy online, there is no middleman like agents engaged who can influence your decision. The premium you will pay online will be comparatively less as it does not have the commission component of the agents.
Best is to wrap the renewal up on time:
It is best if you decide to renew the car insurance policy well in time. Unnecessary delays will push you to pay the surveyors fee and additional amount which you would have otherwise earned under No Claim Bonus.
Customization is in. Do that when Car Insurance Renewal is due:
Could you imagine that insurance companies will allow you to customize the value of your car? No, right? But that is not the truth. You are allowed to customize the value. Do that if your vehicle is old and you will save premium. For lower IDV you will pay less premium.
Enhance the Insurance Policy with necessary Add-Ons:
Buy only essential add-on covers and not all. You can govern the premium by choosing the valid add-on covers.
Keep the tenure of the policy long:
The insurers offer a discounted premium when you choose the tenure of the policy to be 2-3 years instead of only one year. So check if there is any discount offered for a long term policy from the insurer. If yes, then renew your car insurance for more than a year.
Control the premium with voluntary deductible:
Voluntary deductible is the portion of the claim that you agree to pay from your pocket. If you are confident that you are not likely to claim often, then you can opt for a higher voluntary deductible against which the insurance company will offer a low premium.
Renewal of your Car Insurance Policy is important because driving without it is considered as an offence. If you are caught doing so, you will end up paying a fine of 2000/-. Repeating the crime will cost you up to 4000/-. So, why add to your worries when your life is already keeping you on your toes.