Motor Insurance – Tips to Save Big on Premium!

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.

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#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Car Insurance Premium Price

New India Assurance

Cashless Garages

3000

Plan type

Comprehensive

Starting from

₹ 2,727

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

National Insurance

Cashless Garages

3100

Plan type

Comprehensive

Starting from

₹ 2,757

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

Bajaj Allianz

Cashless Garages

4000

Plan type

Comprehensive

Starting from

₹ 2,868

Check premium
Claim Advantage
  • Spot Claims Upto Rs. 30,000
  • Repair service at select cashless garages

DIGIT

Cashless Garages

Repair Anywhere

Plan type

Comprehensive

Starting from

₹ 2,962

Check premium
Claim Advantage
  • 6-Month Repair Warranty
  • Advance claim payment
  • Free Pick-up & Drop

Oriental Insurance

Cashless Garages

3100

Plan type

Comprehensive

Starting from

₹ 3,005

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

DIGIT

Cashless Garages

Repair Anywhere

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

Bajaj Allianz

Cashless Garages

4000

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

Oriental Insurance

Cashless Garages

3100

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

National Insurance

Cashless Garages

3100

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

New India Assurance

Cashless Garages

3000

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person
See more plans

Above-mentioned prices are for a 7-year-old Maruti WAGON R AVANCE LXI (998 CC) registered in Gurgaon and 15 days before expiry of previous policy

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.

* All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

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.

Written By: PolicyBazaar - Updated: 26 June 2021
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