For third-party liability, the premium is set, and coverage is necessary. However, for Motor Vehicle damage risk, the premium depends on the type of coverage required. This implies that you may reduce the cost of your comprehensive insurance premium by customising your coverage and considering several other aspects. Here are some strategies for reducing your premium, available once you download the car insurance app:
1) Obtain a ‘pay as you drive’ insurance
This is a relatively new idea in the Indian vehicle sector, accessible from 2020 under IRDAI’s regulatory sandpit norms, and only a few insurers are permitted to advertise it. It is a usage-based product for which the insurer only charges a premium for the predetermined amount of km. Nonetheless, the insured receives the same advantages as a conventional comprehensive policy. Thus, if you drive infrequently, this would be an excellent approach to reduce your premium, as fewer miles equals an economical premium. #
2) Increase your deductible
The deductible is the amount you must pay out-of-pocket before the insurer covers your claim. Insurance premiums are less expensive when the deductible is greater. Hence, if you are confident in your driving abilities or do not drive much, choose a greater deductible on car policy to reduce your rate. *
3) Make a few changes or enhancements.
Whenever you modify your vehicle in any manner, whether by adding a CNG kit or an electronic gadget, you must notify your insurance since it may affect your rate, your claim may only be allowed if you provide information. Avoid modifications that enhance the likelihood of theft, such as wheels, interiors, and painting.
Similarly, any modification to a vehicle’s engine or mechanical components that increases its power or acceleration increases risk and a premium increase. Avoid bull bars, pressure horns, tinted head or tail lights, faux carbon fibre, flashing brake lights, etc.
4) Avoid modest claims
If your automobile sustains minor damage, such as scratches or tiny dents, you should avoid filing a claim since you will not be eligible for a no-claim bonus (NCB) at your next policy renewal. NCB is a premium concession ranging from 20% to 50% that your insurer provides for not submitting claims throughout the policy period. This is available if the car insurance renewal online is done within 90 days of expiration. Hence, paying out of pocket is preferable if your automobile damage is around Rs 2,000, and you are expected to receive an NCB of Rs 6,000 next year.
5) Outfit your vehicle with anti-theft gadgets
Another simple strategy to minimise your auto insurance price is to lessen your vehicle’s theft risk. The lesser the premium, the greater the safety. You can reduce your premium by adding anti-theft equipment such as gear locks, anti-theft alarms, and steering locks from licenced manufacturers. ##
6) Do not purchase every add-on cover
Not all damages are covered by basic insurance. Add-ons expand your comprehensive coverage, but they also increase your cost. Choose a good car insurance app, download and pick the add-ons based on your requirements.
So, if you do not reside in a location prone to flooding, you do not require Motor Insurance coverage for engine protection. Some less essential add-ons cost the same as others. So, you can forego coverages like daily allowance or loss of personal property.
*Standard T&C Apply
# Visit the official website of IRDAI for further details.
## 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.‘