It’s important to make sure your car is insured at all times. This means making sure you renew your car insurance policy on time and staying on top of due dates and grace periods.
However, it is also important that you do not lose out on the best car insurance renewal deal. Spare a couple of minutes in reading this article before you renew your car plan, and you will be able to save a lot in the long run.
How to Save Money During Car Insurance Renewal
Renew Before Policy Expires
It is important to renew your car policy before it reaches its expiry date. To be on the safe side, you should renew your policy at least 1-2 months before its expiry.
For example, suppose the IRDAI decides to hike the motor insurance rates. In that case, purchasing the policy before the hike will help you keep your third-party car insurance price down even after policy renewal.
Review Policy Features
Go through the policy features before you opt for car insurance policy renewal online. This way, you will know if some features are still applicable.
For example, if your car manufacturer offers a complementary cover that’s also present under your car policy, you can opt out of that cover under your car policy. This leads to you opting for lesser coverage, which results in lower premiums.
Find Out Your Car’s Value
Cars are depreciating assets that go down in value each year. This means your car insurance renewal price decreases each year as your Insured Declared Value (IDV) decreases.
Older cars generally have lower IDVs, and a lower IDV means lower premiums. So, it’s important to accurately assess your car’s current value so you don’t end up overinsuring it.
Make Use of No Claim Bonus
As a policyholder, you should know the importance of a No Claim Bonus discount. This is a reward offered when policyholders do not raise any claims during a policy year. It can be applied at the time of car insurance policy renewals to reduce premiums.
The NCB discount can also be transferred to another policy under a different insurer if you’re switching insurance providers, making it a key asset in helping you reduce your car insurance costs.
The NCB discount generally starts at 20% and can go up to 50%, making a huge difference in the premium amount when your policy is renewed.
Install Anti-theft Device
Improving vehicle safety lowers the overall risk profile of your car. In simple terms, insurers view the installation of anti-theft devices as a good thing, and it can lead to lower car insurance premiums upon renewal.
However, note that the anti-theft devices you install on your car need to be certified by the Automotive Research Association of India (ARAI) to be eligible for any premium discounts.
Conclusion
A car insurance policy exists to serve your coverage needs and to protect your car against unexpected on-road accidents, collisions and other damages. Hence, it’s important to ensure you’re getting the best value for money.
One way to save money on your car insurance policy renewals is by maximising the available discounts under your online car plan, ensuring you’re up to date on policy features and, most importantly, renewing your policy on time.
