Cars are one of the prized possessions for many people. However, to protect these possessions from harm or damage, they only purchase an ‘adequate’ car insurance policy because paying high premiums is not a pleasurable experience. However, there are ways to reduce the cost of your car insurance policy renewal.
Here are the top five ways to save money on car insurance renewals –
- Don’t file a claim for minor injuries or damages:
If your car is hit with a small dent, the thought of filing a claim will come to mind. However, it would be prudent not to do so because the cost of repairing that minor dent would be less than the accumulated NCB, which you certainly want to keep.
If you do not file a single claim for several years, you are entitled to a maximum concession of up to 50% as NCB. With each claim-free year, you pay less on your premium. As a result, if you file a claim for minor damages, you will forfeit the NCB and must pay the entire premium. As a result, be prudent and avoid filing claims for little expenses.
- NCB exchange:
You may be unaware that NCB is linked to you rather than the car. You earned this benefit, so you can transfer it even if you sell your old car and buy a new one. Just remember to request an NCB certificate from your previous insurance company. You’ll need it when you buy a new car insurance online or offline policy.
- Assess your IDV:
The value declared by the insurance company for your car is known as the Insured Declared Value (IDV). The IDV depreciates with each renewal of your policy. The IDV is the amount your insurance company must pay if your car is wholly damaged or stolen.
IDV has a direct impact on your car insurance policy’s premium. Always include the correct IDV for your vehicle, as this helps to optimise your premium. It is also critical that the information you provide is accurate for your premiums to be reduced.
- Renew your insurance policy before it expires:
Remember your policy renewal date, just like your birthday or anniversary date. It will lapse if you do not renew car insurance on time. This also means you’ll have to buy a new policy and go through the lengthy process of having your vehicle inspected again. Furthermore, you forfeit your accumulated NCB. As a result, renew your policy before it runs out.
- Online premium rate comparison:
In today’s world, everything is available online; you don’t even need to leave your house to go grocery shopping or buy home décor, electrical appliances, and so on. Everything is only a click away. It is always a good idea to compare multiple products before purchasing.
Similarly, before purchasing car insurance online, it is prudent to compare policies online. You can compare premiums from various insurance companies, read online reviews, examine claim settlement ratios, avoid intermediaries, and so on. Thus, purchasing car insurance online will only benefit you.
Insurance renewal should be relatively simple now that you know all the tricks. Having active insurance coverage is always both necessary and required. If you have further questions about the renewal process or other details, you can contact the insurance company via their website or by calling their helpline.
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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