One can easily save on car insurance premium during prominent festivals as insurance companies introduce offers on their products. In this article, we will discuss tips to save on Car insurance premium during Christmas and other festivals.
Tips To Save On Car Insurance Premium
#1 Compare Car insurance policies
Comparing car insurance policies will give you a clear idea about the features and benefits offered by each policy. You will also get an idea about the cost of your ideal policy. If you feel that the services and features offered by two insurers are similar, you can choose a policy that costs lesser. Car insurance policies might cost slightly less during festivities, as some insurers are inclined towards offering a discount on new car insurance during festivals like Diwali and Christmas.
#2 Set the right IDV
Setting a higher IDV i.e. Insured Declared Value will increase the cost of your car insurance policy. But if you set a lower amount, even though it will reduce the cost of your car insurance policy, it will also reduce the claim amount if your car is stolen or gets damaged beyond repair. Thus, it is important to set the right IDV and not increase the amount. The trick is to set an amount approximately equal to the current market value of your car.
#3 Be sure to avail NCB (if applicable)
NCB i.e. No Claim Bonus is a prominent discount you can avail in case you have not raised any claims in the previous policy year. You can claim the discount at the time of car insurance renewal. In short, this is a reward given by your car insurance company for driving safely and not raising any claims. Claim the NCB if this discount is applicable to you. NCB can be as high as 50% discount on car insurance premium if you have not raised a claim against your policy for 5 consecutive years. Thus, driving safe earns you large discounts.
#4 Avoid making claims for minor damages
The cost of your car insurance policy will increase if you raise a claim as you are likely to lose your NCB. The NCB cycle drops to zero as soon as you raise a claim. Thus, in order to gain discounted premium, avoid making claims for smaller damages to your car.
#5 Set deductibles wisely
Deductibles in car insurance can be of two types – compulsory and voluntary. Usually, you have the option to choose a voluntary deductible while buying new car insurance. Even though voluntary deductible will decrease the cost of your car insurance policy, you will have to pay this amount in case you raise a claim. Thus, set a voluntary deductible wisely and do not commit a higher amount.
#6 Install an anti-theft device
Buying a comprehensive car insurance policy will help you get a financial cover against situations like theft, damage due to natural calamities, etc. But if you take measures to protect your vehicle say against theft, your insurer may give you a discount. Thus, if you have an anti-theft device installed in your car, make it a point to inform your insurance company about the same.
#7 Become a Member of AAI
Becoming a member of any of the Automobile Association of India may help you avail a discount on your new car insurance premium. Since these associations carry out a check for safe driving, personal information etc. the members of these associations are trusted. Thus the discount.
#8 Submit correct information
Revealing correct information about the location of residence, gender, marital status, etc. will likely fetch you a customized policy. If you are a safe driver, you are likely to pay less on car insurance as compared to a person who has an active history of claims.
How To Calculate Car Insurance Premium?
You can calculate the premium of your car insurance policy by considering a factors that affect its cost. A simple way is to use a car insurance premium calculator. This tool helps you determine the approximate cost of the policy. You can tweak factors like IDV, add-ons, deductibles, etc. to arrive at an ideal car insurance premium.