Paying High Car Insurance Premiums? Here’s How You Can Reduce Your Costs

Car insurance is a mandatory requirement by the law. The Motor Vehicles Act, 1988, makes it compulsory for every registered vehicle to have a motor insurance policy. Motor insurance is one of the few things that you need to check when you buy a car.

Since the car prices and its maintenance cost are steadily rising, its insurance prices are also increasing. Some individuals may find it expensive. In this article, we have compiled the different ways how you can control or limit the cost of your insurance premiums.

Compare car insurance plans

Before finalising your purchase, make sure you compare the various plans, its benefits, and the coverage offered by multiple insurers. If you are opting to purchase car insurance online, comparison becomes all the easier. Comparing policies online is at the convenience of your home. Some plans are offered only via online channels and might be cheaper too.

Be smart with the coverage

Analysing your coverage at each car insurance renewal is helpful. It helps in evaluating the coverage depending on the present condition of your car and the geographical conditions. Say, for example, you relocate to a flood-prone region, opting for a comprehensive coverage will be beneficial over third-party insurance plans. In case you had earlier purchased a few add-ons that are not useful, you can choose to opt-out of them to keep your premiums in check.

Keep an eye on deductibles

Deductibles are another factor that can influence your premium costs. It is an out-of-pocket amount that you need to pay when making an application for claim. If you opt for a lower deductible, the premium amount will be higher and vice versa. A higher deductible can reduce your premium and should be opted if you are an extremely safe driver and haven’t made a claim in the recent past. Although, be careful and do not go overboard with increasing the deductible.

Preserve your NCB

Car insurance is selected to avoid any financial hiccups at the time of damages or repairs, but making smaller claims may not work in your favour. In case you make claims for minor repairs, you will lose out on the no-claim bonus. It is a concession offered at the time of renewal premiums. This concession amount is significant, starting at 20% and going up to 50% of your own-damage coverage for every claim-free policy-year. In case you are worried about losing out on NCB benefits, you can opt for an NCB protection cover too.

Avoid the frills

Modifications to your vehicle not only can be expensive, but directly impact your car insurance premiums too. While a few modifications may be permitted, not all modifications are allowed to be covered under your base policy as determined your insurer. Thus, it is better to stay away from such modifications. On the other hand, if you wish to modify your car, make sure you intimate your insurance company otherwise it may invalidate your insurance at the time of claim.

These are a few pointers to note that can help you keep your premium costs in check. While you make a note of these tips, a car insurance premium calculator will aid the comparison of different plans effectively. Lastly, take note of the coverage and other benefits and let price not be the only factor in deciding a suitable policy.