The experience of owning a car is truly complete when you have an excellent car insurance policy. By protecting it against damage, you are ensuring peace of mind for yourself. However, the financial crunch brought on by the pandemic has made most of us reconsider our expenses and the car insurance premium could be one area where people may consider holding back. Cancelling your car insurance policy is not the answer. But there are other ways to reduce the burden of paying a higher premium.

As a policyholder, you have a variety of options when it comes to choosing an insurance policy. Though you don’t have a say in the third-party liability cover, the comprehensive insurance options give you the freedom to choose whatever fits your requirements and needs. With some of these tips, you’ll understand how to reduce the car insurance premium.

Tips To Lower Your Car Insurance Premium

1. Compare Before Buying

One of the most effective ways to lower your car premium is to plan its purchase carefully. Of the many car insurance options that are available, go for something fairly affordable. You can use an online car premium calculator that will help you calculate car insurance premiums and compare the quotes from two or more good insurance companies. Whichever you choose as the final option need not necessarily be the most expensive or the cheapest one. The foremost consideration should be to see if the benefits and features are good enough for your vehicle.

2. Remove Unnecessary Add-Ons

Most reputed car insurance companies offer add-ons to supplement your car insurance coverage. These may include road assistance, key replacement, engine protection, etc., and they come at an extra cost. If you feel that your car insurance price is not enough for your vehicle, you can choose these features. Depending upon your need and the circumstances, they are quite useful in protecting your car and you. But that also means that your insurance premium will increase. While buying the policy, ensure that you do not buy all add-ons but instead, choose only the ones that you really need.
Likewise, if you see that you don’t have much need for a certain add-on, consider removing it from your policy. For example, during the lockdown, when you are driving around less, the roadside assistance feature is not of much use!

3. File Claims Wisely

When your damaged car needs help at the mechanic, you can cover those expenses with the help of your car insurance. However, it only makes sense to file a claim if the damage really needs the insurance money. Filing a claim for every little damage will play against you as you lose out on the No Claim Bonus (NCB). This benefit lets you earn a discount from your insurer if you have successfully avoided filing claims during the policy term. This is not to say that you must always shell it out of your own pocket. However, it does indicate that it pays to be a safe driver.
A No Claim Bonus is also valid if you’re changing over to a new car or insurer since it belongs to you and not your vehicle. Ensure that you renew your policy within 90 days so that you avail the NCB and the car insurance renewal premium gets reduced. Post this grace period, the NCB becomes zero.

4. Secure Your Vehicle

The more risk your car carries, the higher will the premium be. A four-wheeler with a few good security installations will attract a lower premium as the risk of it getting lost or stolen will be reduced. Adding a security camera to your garage also helps as it acts a good deterrent for robbers, thereby keeping your car safe from theft.
You can also have anti-theft devices like safety alarms and security locks for your car parts that could be easily stolen. Insurers consider all these measures while calculating your premium.
Also, being a part of organisations like the Automobile Association of India (AAI) or the Western India Automobile Association (WIAA) can earn you discounts on premiums. You will be considered a safe driver due to your association with these bodies under the Motor Vehicles Act & Rules.

 

5. Skip The Fanciness

Since the cost of your car will determine the Insured Declared Value (IDV) or the sum assured, it will determine the cost of the monthly premium. Many people love giving their car a posh looking by fitting accessories like ultrasonic sensors and alloy wheels. While this could be great for your car’s appearance, it will also increase its value and therefore, the premium.

You can discuss this with your insurer to understand how much you can customise your car without ramping up the premium cost. The other reason why having these gadgets can lead to an increase in the premium is because they’re attractive and quite likely to be stolen. Naturally, the risk factor here is greater than in a less embellished vehicle.

 Conclusion

With these ideas, you can choose which ones will help you save some money on your premiums. However, never consider cancelling your insurance policy just to cut costs. Another economical way to handle this would be to buy car insurance online as it eliminates all the overhead costs.

Also, not having four-wheeler insurance can become a more expensive deal if something happens to your vehicle. After all, you know how important it is to protect your precious car from damage.