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December 8, 2024
Finance

Three Ways To Cut Your Car Insurance Premium

Many people might consider car insurance premiums as an extra cost. However, there are numerous strategies to cut this expense. For instance, in the case of minor dents and scrapes, experts advise against filing a claim. Self-performed small repairs are more economical than filing a claim and forfeiting the no-claim benefit. Here are a few other strategies for reducing your auto insurance costs. ## *

  • No-Claim Bonus For Transfers

You can save significantly by transferring the no-claim incentive from your previous car to the new one. Due to how it will affect their business, agents won’t tell you this. Keep the insurance in your name when you sell your old car. If you are not purchasing a new automobile immediately, obtain the no-claim certificate from the insurer and reserve the incentive. The collected no-claim incentive must be transferred to the new car within three years of the sale. The new car’s insurance cost will be reduced by 50% if you haven’t filed a claim in the previous 4-5 years. * ##

  • Deciding On A Higher Deductible

Increasing the deductible portion is one technique to lower the insurance premium. When you file a claim, the deductible is the amount that you pay from your own pocket. Therefore, if you choose a deductible of Rs 5,000 and the repair bill is Rs 8,000, you will be responsible for the first Rs 5,000, while the insurance provider will only pay Rs 3,000. Use this option with extreme caution. You will overpay for repairs if you choose an extremely large deductible to lower the premium.* ##

Here are a few steps you may take to reduce the cost of your auto insurance:

  • Install Theft-Prevention Tools

The insurance provider gives you a tiny concession of up to Rs. 200 if you install anti-theft devices in your car (such as a steering lock or gear lock). However, this safety equipment should come from authorised producers. Other minor premium savings are available if you join particular auto organisations. ##

  • Drive Carefully And Maintain A Good Driving Record

Maintaining a clean driving record is one of the most effective ways to lower your four-wheeler insurance costs. Avoid speeding tickets, accidents, and other traffic violations. Insurance companies may offer concessions for safe driving, such as a good driver concession or a low-mileage concession. Additionally, regularly maintaining your vehicle can help prevent accidents and breakdowns, which may also offer you cost-effective car insurance online. ##

There are various ways to reduce insurance costs and calculate car insurance premiums. It’s important to , compare rates and coverage from different insurance providers to find an insurance policy that can best suit your needs. Additionally, regularly reviewing and updating your coverage to reflect changes in your circumstances or needs can ensure you get the best value for your money. ##

*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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