5 Simple Tricks To Reduce Your Car Insurance Renewal Cost
Posted: Sep 01, 2019
Majority of the people claim that cars are their most prized possessions. However, renewing insurance every year and the high premium rates will make you not want a car altogether! However, there are ways to combat the renewal cost.
Nobody really wants a second hand car these days. Buying a new one these days is no big deal because you can easily buy it on EMI. This is basically the reason why we see so many cars on roads every day. The roads in India are very accident-prone and hence it is very important to renew our car insurance timely to avoid huge expenses you might face in future in case of an accident.
Insurance is one of the good things that the government has made compulsory and yet people are not thankful about it. People avoid buying insurance because of the rising premiums. The value of car depreciates every year but the insurance renewal premium does not lower with it. The prices keep soaring instead of decreasing with passing years.
Below are top 5 ways/ tricks to reduce car insurance renewal cost:
1. Renewing Policy before it Expires
This is the most basic trick of all. You need to go through the process of inspection of the vehicle as well lose your NCB if you do not renew your policy before it expires or in the stipulated time post expiry.
2. Avoid making claims for small expenses
If in case your car gets a small dent, the cost of repairing the damage will be lesser when compared to the NCB accumulated that will help you reduce your premium rates in the future. Because you have lost the accumulated bonus, you will have to renew it the next year by paying the full amount for your premium. File an insurance claim only when necessary or critical.
3. Buying and Comparing premiums online
Nowadays it is possible to buy anything and everything online, right from groceries to all forms of electrical appliances. It becomes easy to search as well as compare on different websites to get the best deal available. Same way, you can buy insurance policies online. When you buy an insurance policy online, you can easily compare premiums from various companies and then select based on reviews, coverage, add-ons, features, premiums, claim settlement ratios etc. therefore, buying a policy online is always better.
4. Transferring your No claim bonus (NCB)
NCB is not linked with the car but with the policyholder. The policyholder gets benefitted by the NCB which gets accumulated for claim-free years. If you buy a new car and sell your old one, it is even transferrable. You will get a NCB certificate for your vehicle from the insurance company. The NCB retention certificate is valid for 3 years so you must remember to get a NCB certificate for your vehicle from the insurance company.
5. Mentioning correct IDV (Insured Declared Value) and other details
The value that is declared by your car by the insurance company is known as IDV. During car insurance renewal, it will depreciate by a certain percentage. IDV is the amount that the company will pay when there is any case of theft or complete damage to your car. It is important to know the IDV of your car to avoid paying any additional premium.
A mother of 2 lovely kids. Digital Marketer by profession and a blogger by passion! Here to inspire and motivate people with my writing.