Let’s face it; paying for car insurance always seems like a burden.  Well, you can’t deny the fact that having car insurance, apart from being mandatory in India, is helpful when your vehicle meets with an accident or theft. So, now that we must buy car insurance here are some tips and tricks to lower the cost of hefty premiums.

1. Compare Policies

Haven’t we stressed this enough? Yes, comparison saves a lot of money because you can see side-by side the premium and offered benefits for each policy. Simple, intuitive process leads to good decision and big savings. As, we at PolicyBazaar always say, “Ullu mat banno, ankhein kholo aur compare karo”.

2. Re-evaluate Your Policy Features

Don’t fall for just advertisements. Review all the policy features and determine some riders or add-ons that may not be further required.  Cutting on impractical add-ons such as rust protection, sealant cover, etc. can significantly save your premium cost. Make sure to check the utility of each aspect of the plan and keep your options limited.

3. Score High With No Claim Bonus Points

Yes, you can save upto 50% on your car insurance if you aim for high No Claim Bonus (NCB) points. Insurance companies will reward you with No Claim Bonus if you don’t make a claim for a full year, or more. The more claim-free years you achieve, the greater the discount that applies to your premium. Drive safe, gain NCB points and save more on your premiums!

Here’s the table showing discount percentage vis-a-vis claim free year/s:

Number of years with no claim	Discount on policy renewal (%)
1st year	20%
2nd year	25%
3rd year	35%
4th year	45%
5th year	50%

4. Increase You Policy Deductibles

Keeping your deductibles high can significantly cut down your car insurance premiums. For instance, if your excess is Rs. 3000 and your claim is worth Rs. 12000, you will pay the first Rs. 3000 and the insurer will pay for the remaining Rs. 9000. The more your deductible is, lesser premium you’ll have to pay. Just make sure you don’t get carried away and select a deductible that is unaffordable, as you’ll need to pay this amount when you make a claim.

5. Install Safety Features

Do you really need to install safety features in your car? While most of the new vehicles come pre-equipped with standard safety features, those with older cars have to think it through.  Vehicles equipped with safety features such as anti-theft device, alarm system, anti-lock braking system etc., have generally low premium slabs. Installing additional safety features to older cars can reduce your car insurance premiums in a big way.

When it comes to saving on car insurance, it’s all about knowledge and research. Stay informed and act smart!

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