Expert Guidance on Reducing the Cost of Car Insurance Renewal

1. Make Use of Your Accumulated No-Claim-Bonus

It is always recommended to raise a claim when the repair damage is substantially more than the compulsory deductible amount and the damages to be repaired are significant. No claim bonus is the discount on premium the insurer gives to the insured as a reward when there is a claim-free year. No claim bonus starts at 20% for the first no-claim year and keeps on progressively increasing if there are successive claim-free policy periods. 

The highest no claim bonus a policyholder can get is 50% provided that they have ensured 5 consecutive claim-free policy periods. Hence, make sure that you always check on the no-claim bonus amount that has been accumulated before you are renewing car insurance online so that you can save on the renewal cost. 

2. Don’t Claim for Minor Damages 

Your no claim bonus will be reset to zero even if you make a minor claim during your policy period. This means that you will lose out on the renewal discount you would have received if you had not claimed in the previous policy period.

Also, ensure that you don't make frequent claims for trivial damages like dents, scratches, and minor collisions, etc. So that your no claim bonus keeps on accumulating in the future else it will hurt your car insurance renewal cost.

3. Try Purchasing Multi-Year Motor Insurance Plans

The most ideal way you can ensure lesser costs for car insurance renewal is to opt for multi-year car insurance or a long-term car insurance policy. You can either buy long-term third-party car insurance or a comprehensive plan valid for up to 3 years. This will let you enjoy an additional discount on the premium amount to be paid to the insurer for car insurance renewal.

4. Carefully Select the Insured Declared Value

Insured declared value is equal to the present market value of your car as set by the manufacturer. IDV is decided at the time of policy purchase. This is the amount that your insurer will compensate you for in case your car sustains total damage beyond repair or total loss due to theft. 

Hence, setting the right insured declared value becomes tricky. A comparatively higher IDV value will although permits to settle a higher claim with the insurer but will also bear an expensive premium charge. On the other hand, lower insured declared value can save you from paying a high premium amount but will also attract lower claim settlements in the case of a severe mishap.

Make sure that youselect the right IDV for your car, which is correctly determined based on the car make, model, date of registration, cubic capacity, and ex-showroom price of the car. 

5. Don’t Wait for the Policy to Expire

One of the gravest mistakes you can do while trying to save on the cost of car insurance renewal is to get your car insurance renewed after the policy has lapsed. If you are not able to renew the car insurance policy on time, the following 2 adversities may occur:

1. You will lose out on the accumulated no claim bonus from previous policy periods. (Applicable only if you do not renew the car policy within 90 days from the date of expiry)

2. Your insurer will not provide any discounts or additional benefits at the time of car insurance renewal.

6. Compare Car Insurance Policies

Every time you go ahead and buy or renew motor insurance, the first and most crucial step is to research and compare the best car insurance policies in the market. There are a lot of car insurance policies available in the market that carry their unique premium amount. If you do not compare these policies and their features and benefits, you might end up paying a much higher premium for lesser benefits. 

You can conveniently compare several different plans available in the market from the comfort of your home. All you need to do is visit the official website of Policybazaar Insurance Brokers Private Limited and within a few minutes, you will have estimated premium amounts of several policies and choose one that suits your requirements the most without compromising on the cost of the car insurance renewal or the services to be provided by the insurer.

7. Only Pay for Your Requirements during Car Insurance Renewal

Now that you know that it is important to research and compare car insurance policies online, it is important to understand that you should always buy the car policy that suits your requirements the most. Before you buy or renew your next car insurance, make sure that you list down all your requirements and then choose the most suitable motor insurance.

By doing this, you will ensure that you are not buying car insurance policies that offer a lot of coverage but are of no use for you. 

8. Avoid Car Modifications

Who doesn't like car modifications? They not only enhance the aesthetics of your car but also improve performance significantly. Modifications mean changing your existing/original car parts with after-market car parts that are much more premium and cost a lot more than the original parts. 

While this gives your car a pleasing look as well as better dynamics and performance, it also dramatically increases your car insurance premium as the cost of repairing such damaged parts will also be high. 

So if you wish to save on car insurance renewal costs, avoid spending extra for additional modifications on your car and you'll be good to go!

9. Opt for Online Car Insurance Renewal

Another way to reduce the cost of car insurance renewal is to renew your next car insurance policy online. Insurance companies offer a lot of discounts on renewing car insurance online, however, if you opt for renewing your car insurance offline through a middleman, you would have to forego all those discounts and give commission or brokerage to the agent. With the growing digital age, it is always wise to purchase or renew your car insurance policy online. For online renewal you can get in touch with us at care@policybazaar.com or call us at 1800-208-8787.

Conclusion

Car insurance can be tricky. You want to drive legally and keep yourself protected on the road but also not do it so much that you end up paying extremely high premium amounts when you renew car insurance online. This calls for balanced motor insurance plans for your car that can be renewed at a price that does not burn on our pocket as well as keep you properly covered from financial and legal liabilities in case of unforeseen mishaps.

The above guidance can prove extremely helpful for you only if you follow all the rules and regulations while driving. So make sure that you religiously follow all traffic signals and carry all mandatory documents such as your driving license, registration, and PUC certificate.