With the mandatory motor insurance requirement, it is no doubt that you need to buy one when you purchase a car or a bike. Among the myriad plans to choose from, there are two broad categories among which these plans are classified – third-party and comprehensive plans.
While a third-party plan has restricted scope limited to third-party liabilities, you might choose the obvious comprehensive policy. A comprehensive plan ranks over a third-party plan by offering coverage for own damage along with protection against natural and man-made disasters. Further, these comprehensive motor insurance plans can be customised with various add-ons which are optional. But paying a hefty premium at each renewal to have the same amount of coverage might bleed your insurance plan.
This articles sheds light on how you can save premium when renewing your motor insurance coverage.
Table of Contents
#1 Compare and shop online
Comparison is the starting point to save some moolah when it comes to buying any product. Similarly, in case of insurance plans, you could save a handsome amount if you compared before buying. In addition to comparing the available options, online is the new trend. Thus, comparing online can help you get an idea of all the plans that are available in the market For that, all you need to do it visit your preferred insurance company’s website and shortlist the various plans that can be the right fit. Once the same process is done across multiple insurance providers, you can narrow down your purchase decision using an insurance calculator.
#2 Setting the right IDV
Comprehensive plans have the facility to change the IDV or Insured Declared Value withing a specified range. This change in IDV can impact your premium as it the maximum amount that the insurance company compensates. Hence, at the time of renewal, make sure to check the IDV and adjust it based on your requirement.
#3 Making use of accumulated NCB
NCB or No-Claim Bonus is the renewal benefit offered by insurance companies for not making any claim during the previous policy tenure. Since it isn’t always when a claim will be made for repairs or damages, this feature helps limit the premium costs. Also, the NCB benefits start at 20% and increase all the way up to 50% for every consecutive claim-free policy tenure, thereby saving a substantial amount in bike or car insurance renewal.
#4 Opt for voluntary deductibles
Another nifty way to keep premiums in check is to make use of deductibles clause. Every insurance policy has mandatory deductibles that require you, the policyholder, to pay a specified amount when making a claim. The same facility is available on a voluntary basis which is over and above the compulsory deductible. Here, if you choose voluntary deductibles in your insurance coverage, the premium at present can be lowered to fit right within your budget. While you opt for voluntary deductibles, keep in mind that you shall be required to pay a higher amount during each claim from your pocket.
Apart from the above, availing memberships of automobile associations like Automobiles Association of India or Western India Automobile Association, the insurance company offer a concession in your renewal premium. Further, with electronic gadget that enhance the safety of your vehicle like an anti-theft device also contribute to lowering the premium. So, keep in mind the above tips on how to lower your premium while keeping your insurance coverage intact. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.