Everyone wants to save on car insurance, but few know that you can lower your premium without cutting corners or coverage.
In Hyderabad, where costs vary by RTO and claim ratios, even small adjustments can bring down your premium by 10–40%.
In this post, we’ll show you five practical, IRDAI-approved and 100% legal ways to save on your car insurance - from keeping your No Claim Bonus (NCB) intact to choosing the right IDV and add-ons wisely.
These strategies work whether you’re buying a new policy or renewing an existing one.
Let’s break down each method with real examples so you can apply them before your next renewal.
Keep Your No Claim Bonus (NCB) Active
| Claim-Free Years |
Discount (NCB%) |
| 1 |
20% |
| 2 |
25% |
| 3 |
35% |
| 4 |
45% |
| 5+ |
50% |
How to keep it active:
- Avoid small claims (below ₹2,000–₹3,000).
- Renew before expiry - NCB lapses after 90 days.
- Transfer your NCB when switching insurers or cars.
- Consider NCB Protect add-on to retain it even after one claim.
Example:
If your Own Damage premium is ₹10,000 and you have 50% NCB - that’s ₹5,000 saved each year.
NCB rewards you for every claim-free year by reducing your renewal premium by up to 50%.
What Zero Depreciation Covers
| Covered |
Not Covered |
| Plastic, metal, and fibre parts |
Engine damage (unless Engine Protect is added) |
| Repair/replacement after accident |
Regular wear and tear |
| Full cost of spare parts |
Consumables (oil, nuts, bolts) |
| Depreciation on paintwork |
Tyre and tube replacement (partial only) |
| Labour costs (as per policy) |
Mechanical breakdown not due to accident |
Choose A Realistic IDV (Insured Declared Value)
Your IDV affects your premium directly. The higher the IDV, the higher the premium - and vice versa.
But undervaluing your car’s IDV just to save money can hurt you during total loss or theft.
What to do:
- Choose IDV close to your car’s current resale value.
- Avoid setting IDV below 15% of market value.
- Check your Hyderabad RTO or used-car portals for accurate pricing.
- Review IDV annually - depreciation adds up each year.
Example:
A 10% drop in IDV may save you ₹800–₹1,000 on premium but could cost you ₹30,000 less in claim payout.
Skip Unnecessary Add-Ons
Add-ons increase coverage but also premium. Pick only what suits your car’s age and usage.
| Add-on |
When It’s Worth It |
When to Skip |
| Zero Dep |
Cars <5 years |
Cars >7 years |
| Engine Protect |
Flood-prone areas |
Dry, safe regions |
| RSA |
Frequent travel |
Short-distance city driving |
| RTI |
New cars (<3 years) |
Older cars |
| Key Loss / Consumables |
Optional |
If rarely needed |
Pro Tip: Bundle only the 2–3 most valuable add-ons for your lifestyle instead of buying them all.
Opt For A Higher Voluntary Deductible
A deductible is the small amount you pay from your pocket during a claim - the insurer covers the rest.
Choosing a higher voluntary deductible legally lowers your premium because you’re sharing part of the risk.
| Deductible Type |
Example |
Typical Saving |
| ₹0 |
Pay full premium |
₹0 saved |
| ₹2,500 |
You pay ₹2,500 per claim |
Save ~10–15% |
| ₹5,000 |
You pay ₹5,000 per claim |
Save ~20–25% |
Best for: Safe drivers who rarely file claims.
Compare And Switch Insurers
Different insurers price the same car differently. Comparing plans every renewal can save up to 40%.
Do this:
- Use PolicyBachat to compare quotes from 20+ insurers in one view.
- Check IDV, claim ratio, and garage network before deciding.
- Don’t renew blindly with your old insurer - premiums often creep up yearly.
- You can switch anytime during renewal without losing your NCB.
Local Note for Hyderabad:
Average price difference between top and bottom insurer: ₹{premium_diff} per year.
Bonus Tips To Reduce Premium Further
- Install ARAI-approved anti-theft devices - get up to 2.5% discount.
- Be honest in your declaration - incorrect info can lead to rejection later.
- Avoid modifications that increase performance - they raise premium.
- Opt for multi-year policies to lock rates.
- Pay online - most insurers offer small digital discounts.
Local Insights For Hyderabad
- Average annual premium savings: ₹3,200.
- Top 3 cost-effective insurers: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
- Popular add-ons dropped to reduce cost: Key Loss, Consumables.
- RTO-based premium difference (PIN {pin}): ±5%.
FAQs
Is it legal to lower my IDV for cheaper premium?
It’s allowed - within a 10–15% range set by insurers.
Do insurers give discounts for long-term policies?
Yes, you can get up to 10% off on 2–3 year plans.
Can I retain my NCB if I switch insurers?
Yes, just share your NCB certificate with the new insurer.
Do add-ons affect claim approval?
No, they only extend your policy benefits.
Is it worth paying online?
Yes, it’s quicker and often costs less.
Does car color or brand affect premium?
Only if it changes resale value or theft risk.
Does engine size impact premium?
Yes, larger engines mean higher third-party rates.
Can I buy add-ons mid-year?
Not usually - you can only add or remove at renewal.
Do EVs have cheaper premiums?
Yes, IRDAI offers discounts for electric vehicles.
Will switching insurer affect my claim record?
No, it’s linked to your vehicle, not the insurer.
How can I compare plans easily?
Use PolicyBachat’s instant comparison tool for Hyderabad.
Should I claim for minor scratches?
No, you’ll lose your NCB - fix small ones privately.
Does parking location affect rate?
Sometimes - high-risk areas may raise your premium slightly.
What’s the most effective saving method overall?
Keep your NCB intact and compare before every renewal.
Can I still get discounts if I’m a new driver?
Yes, through safe-driving or anti-theft certifications.
Customer Reviews
- “Saved ₹2,500 just by comparing before renewal.” - Neha D., Pune
- “Kept my NCB intact for 3 years - now paying half the premium.” - Arjun P., Delhi
- “I dropped useless add-ons and saved 18%.” - Kavita R., Bengaluru
- “Finally learned what affects premium - super helpful guide.” - Vikram T., Hyderabad
- “Switched insurers easily on PolicyBachat - ₹3,000 saved.” - Sneha M., Mumbai
- “Didn’t know IDV mattered so much. Adjusted mine and saved.” - Ravi G., Chennai