How to Reduce Your Car Insurance Premium
There was a time when owning a car was seen as a luxury. People with high income and rich people used to own cars in the beginning, but with the advent in the technology the cars are now available to even the middle class and above middle class. With the rise in the number of cars sold, the accident rate is also increasing thereby pushing the insurers to increase the insurance premium rates.
As known to every car owner third party car insurance is mandatory as per the Motor vehicles act and this premium is decided by the Insurance Regulatory and Development authority of India after due diligence by striking a balance between the losses of insurance company and affordability of the customers.
This third party premium is fixed for every insurer and cannot be reduced at any cost, but the own damage premium can be reduced by offering extra discounts. This section of car insurance can be used for reducing the premium paid to the insurance company.
Here are few ways to follow for reducing the car insurance premium:
- Voluntary deductible: Deductible is the amount that is to be borne by the insured at the time of claim settlement. There are two types of deductibles namely: Voluntary deductible and Compulsory deductible. Compulsory deductible is applicable for every claim which is pre fixed by the insurer.
Voluntary deductible is the amount that the insured wishes to contribute to the overall claim amount at the time of claim settlement apart from the compulsory deductible.
The deductible amount should be less than the No claim bonus that the insured will receive next year.
- Anti theft device: Installing an anti theft device in the car will help you reduce the risk of car being stolen and also it would be easy to track if the car is stolen. Having an anti theft device approved by the government fitted to your car will reduce the car insurance premium by considerable amount.
Installing devices such as gear lock, steering lock and anti theft devices helps to protect the vehicle from theft or burglary and reduce the premium by about 4-6%.
- Member of Automobile Association: Members of auto mobile association of India are also entitled to receive a discount in their insurance premiums. All you need to do is provide the insurance company with your AAI number to obtain the extra discount thereby reducing your overall premium.
AAI membership provides you features such as 24*7 road side assistance, global driving permits, drivers on call etc.,
- No claim bonus: No claim bonus is a kind of discount offered on your own damage premium for not making any claims in the previous years. This is a type of reward for good driving and not claiming from insurance company. The no claim bonus plays an important part in reducing the overall premium. Higher the no claim bonus, lower the premium, so it is advisable to exercise caution at the time of claim.
No claim bonus ranges from 20 % to 50 % for each claim free year and is calculated on the own damage premium.
- Avoid Break-in: It is of utmost important to keep your car insurance live all the time throughout the year. Insurance companies offer higher discounts to people renewing their car insurance policies without break-in and good NCB.
Having a break-in of more than 90 days in the policy period wipes out your existing NCB.
- Compare Online: It is important to compare online for more discount from insurers. We at PolicyBachat are tied up with almost all the insurance companies and offer online car insurance at affordable rates. Discount of up to 80% can be obtained from different insurers. Even car insurance renewal quotes can be obtained online using the car insurance premium calculator.
The online car insurance reduces the premium by providing many options to be chosen from.
- Opt for Pay As You Drive: The concept of pay as you drive originated in the western countries and is now being implemented in India also. There are few insurers who are offering car insurance on pay as you drive basis. Here you can select the number of kilometres you intend to drive in a particular year and pay premium for the same. Once you exhaust the specified number of kilometres you can refill the number by paying extra premium or going back to the comprehensive policy.
Pay as you drive enables you to pay per kilometre driven.
For best online car insurance quotes please visit Our Portal where you can check for the best car insurance renewal quotes and compare car insurance quotes.