9 ways to reduce car insurance premium

Paying premium for your car insurance on time is one of the important things that one should do without failure. The premium is getting costlier day by day. But to keep your premium low one should follow a few tricks. These can help you keep the premium amount in check. Money9 gives you nine of those tricks to reduce the insurance burden.

Check with multiple insurers

Before opting for a car insurance check multiple insurers. Different insurers charge different amounts for the same car. The premium may vary up to Rs 2,000 for the same car.

Lapsed policy

One should always avoid a situation where the existing policy lapses. Most insurance companies inspect the vehicle in case you miss the deadline for your policy renewal. That also triggers a rise in the premium amount.

No-claim bonus

Always try to use the no-claim bonus (NCB). No claim bonus can go as high as 50% for five claim-free years. But it varies from company to company. In case you make a claim, the NCB resets to zero which leads to a higher insurance premium.

Add-ons

One should also opt for relevant add-ons. Apart from the basic cover, you can opt for multiple add-ons like zero depreciation, engine protects etc. that will help avoid paying a higher premium in the long run.

Vehicle value

At the time of renewal, always set the correct vehicle value on which you are buying insurance. The insurance premium you pay depends on the vehicle value and it is very important to quote your vehicle value.

Bundling covers

Experts suggest if a policyholder does not have a personal accident cover or sufficient life insurance, it will be wise to bundle these products with car insurance than taking separate covers.

Go digital

Try to buy a policy online, directly from insurance company. It would reduce the burden of your premium by not less than Rs 500.

Don’t approach the auto dealer

Always try to avoid buying insurance from the auto dealer, that would increase the premium burden at least Rs 2,000 in a year.

Don’t downsize

Lastly if you downsize your vehicle cost or cut your budget that would have a positive impact on insurance premium. A costlier car has higher insurance value than a cheaper one.

Expert opinion

Experts suggest that to deal with this, policyholders should be aware of some of the important factors that affect the car insurance premium. “Every insurance company has its own logic for calculating the premium. But if one follows these points the premium would be lower,” says Rinku Banerjee, an insurance agent from Kolkata.