If you love to own a car then it is your foremost responsibility to keep it insured. Whether a new one or an oldie, it is must to keep your hot wheels insured.  Motor insurance is an annual process with no fuss of remembering your monthly payments. Well, as third party insurance is mandatory according to the Indian government, it is must to have one.

Let’s try understanding the policy and scope of saving money. As a matter of fact, having motor insurance in itself is a money saving act. Further, in order to avail discount on car insurance premium, here is what you can do

Insured Declared Value (IDV) - 
IDV is the current market value of your vehicle. A per the rule, this keeps reducing as the vehicle ages, and later it decreases the annual premium. IDV depends on the year of make and maintenance of your car. It is generally the total amount paid at the time of total loss. Owner of the car has all the right to further decrease the IDV.

Automobile Association of India –
Being a member of Automobile Association of India can help you get discount on car insurance premium amount.

Anti –theft device installation – 
On installing ARAI approved anti-theft device, one can get discount on own damage premium of 2.5% to a maximum of Rs.500.

No Claim Bonus (NCB) -
No Claim Bonus is discount provided on the own damage premium to the owner if he does not claim for any damage the whole year. This discount ranges from 20% to 50% depending on the consecutive years you haven’t claimed for. Hence it is advised not to claim for very low costing damages. 
 

Discount on OD premium	Years of No Claim
20.00%	No claim made or pending during the preceding full year of insurance
25.00%	No claim made or pending during the preceding 2 consecutive years of insurance
35.00%	No claim made or pending during the preceding 3 consecutive years of insurance
45.00%	No claim made or pending during the preceding 4 consecutive years of insurance
50.00%	No claim made or pending during the preceding 5 consecutive years of insurance

  
Voluntary Excess -
Voluntary Excess is a deductible amount which the insured agrees to pay from his side at the time of claiming for the damage. Here the rest of the amount is paid by the insurer. Opting for higher Voluntary Excess gives you higher discount on car insurance premium.

Here is a table displaying the VE and discount -

Rs. 2,500: 20% on the OD premium, up to a maximum of Rs. 750
Rs. 5,000: 25% on the OD premium, up to a maximum of Rs. 1,500
Rs. 7,500: 30% on the OD premium, up to a maximum of Rs. 2,000
Rs. 15,000: 35% on the OD premium, up to a maximum of Rs. 2,500

Reducing limits of liability –

In case of third party liability, insurance companies provide a cover of Rs. 7.5 lac which can be reduced by the insured. The minimum amount which is mandatory to have is on Rs. 6000.

Comparison -
Purchasing online motor insurance is a simple way to compare policies of different insurer at the same time and save up to 10% on your premium. Online motor insurance facility can help you get the car insurance quotes letting you to make the right decision for your four wheeled princess.

Age and profession
Many insurance companies provide discounts depending on the age and profession of an individual like doctors and chartered accountants get discounts on car insurance premium.

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