How to Reduce Your Motor Insurance Premium

How to Reduce Your Motor Insurance Premium

It is a truth widely acknowledged in India, that a man (or a woman) in possession of a good fortune and own house, must have a vehicle whose cost is directly proportional to the wealth of that man (or a woman).

Well that’s very well, but what about the vehicle insurance? When it comes to insurance, most of us tend to overlook this necessity. Remember that car is an expensive machine and so is it’s up keeping. Even a minor accident can lead to considerable expenses on the repairs. Motor insurance ensures that such expenses are taken care off, providing financial relief to you. Insurance not only covers the expenses, it will also cover you against any legal consequences arising out of an accident involving the insured vehicle. The insurance will also pay for medical expenses if the accident causes injuries requiring hospitalization. Again you will be saved expenses that could have eaten into your savings.

Insurance can be bought for both private and commercial cars, although the terms of commercial vehicle insurance will differ from that of private vehicle insurance. You can easily purchase car insurance online.

Motor Insurance

And if you are still worried about premium, here are some tips to help you save on money on motor insurance.

  • Do Research

The cost for insurance will differ from one insurance provider to another. You can easily get quotes from different insurance providers and compare them before coming to a decision. For this you can use the service of the various insurance aggregators to compare the insurance policies available in the market. Once you have shortlisted the insurance plans, you can directly contact the insurance provider and get any doubts you have cleared. When you compare different insurance plans, do not only focus on the price, as in most cases prices is relative to the service provided. Also, do consider the stability of the and the features of the vehicle insurance plan to come to a decision.

  • Keep a Driving Record

The way you drive will play an important role in the calculation of vehicle insurance premium. Even if you are renewing your insurance, a number of factors are considered before the premium is decided, including your driving record. So, if you have a clean and near perfect driving record with no history of major traffic violations or accidents, you get a much better deal on the insurance than the average user. The logic behind this reasoning is that safe drivers don’t contribute any major risks for insurance provider and to reward safe driving, the insurance company charges a lower premium on the insurance.

  • Don’t make Small Claims

No Claim Bonus is a form of discount given on the vehicle insurance premium if you haven’t made any claim in the preceding year. When you file a claim with insurance company, the NCB is reset to zero. So if you make minor claim, you lose out on the NCB. If the damage is minor and can be fixed under a few hundred rupees, it would be wise not file a claim with the insurer. Every claim that you file is recorded under your name and when you apply for vehicle insurance online or offline, the record is scrutinized by insurance company and is used to determine the premium charges.

  • Go for Higher Voluntary Deductibles

The deductible is the amount that has to be paid out of your own pocket in case of a claim, while the insurer pays the rest. If you are safe driver who is confident about his/her driving skills, you can opt to increase the amount of deductible and lower the overall premium charges on car insurance. A higher deductible means that the insurer has to pay less for the claims filed, hence, lower premium on the policy. But be careful when choosing deductibles, opt for higher voluntary deductibles if you can afford to spend the money.

  • Enhance Safety Features of Car

The safest way to ensure you get a discount on your car insurance premium is to install anti-theft devices. The presence of anti-theft device ensures that risk to the insurance company is minimized, as there is a less chance of paying out compensation due to theft. Another aspect that insurers consider are the presence of safety features for the driver and passengers. Features like air-bags, and seat belts must be in working condition to make you eligible for a discount on the vehicle insurance premium.

With the insurance market inundated with policies, buying a vehicle insurance online or offline is not that difficult.  Wherever you purchase your car insurance from, online or through conventional channels, make sure that you get a proper discount on the overall cost of the vehicle insurance policy. If you like, you can opt for add-on covers with amount saved on the premium.