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Tips to reduce auto insurance premiums

Tips to reduce auto insurance premiums

Car insurance doesn’t have to be a heavy expense that you pay your insurer. Use these simple tips which will help you lower your hefty premiums.

It’s true that car insurance decreases over the years as your car ages, but by incorporating a few simple practices, in the way you choose your insurance plan and the insurance decisions you take, can reduce your motor insurance premiums quite a bit.

Compare online
Comparing policies online is always a good idea, and with a few sites such as policybazaar which make it easy to compare prices online, there’s no excuse not to.

No-claim bonus
A no-claim bonus is a discount in your premiumyou receive for not making an insurance claim in the previous year of the policy. The bonus starts at a 20% discount in the year after a claim-free policy year and it can go up to 50% according to the IRDA. However, some insurers will give you a no-claim bonus up to 65%.

Sometimes it’s better not to make a claim if the damage is minimal and the cost for repair is small.We’ve covered this topic in another one of our posts. Read about it here.

Transfer no-claim bonus
The no-claim bonus is attached to you and not your car.If you’ve bought a new car,you can reduce your expensive premium by transferring the no-claim bonus to you new car.

Voluntary deductible
If you opt for a voluntary deductible, you are agreeing to pay a fixed amount as part of a claim if you meet with an accident. While this may reduce your premium, it will increase the amount you actually pay if you meet with an accident. If you do meet with an accident, it can prove costly.

Install an anti-theft device
Many insurers will give you a discount if you have an anti-theft device installed.

Skip the modifications
If you have luxury gadgets and if you’ve made modifications to your car, you’ll have to pay higher premiums. Add these gadgets only if you can’t do without them.

Join an auto association
If you are a member of organisations which promote road safety, such as Automobile Association of Southern India or Western India Automobile Association, you can avail of a 5% discount on your insurance premium.

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