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Car Insurance Discount

Bought your favourite car but don’t know how to save on your car insurance premium? Here is a curated guide on different types of car insurance discount offered by insurance companies in India. You can take advantage of these discounts and purchase the best car insurance policy for your car.

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      Types of Car Insurance Discount Offered in India

      Insurance companies in India offer multiple types of discounts on the purchase or renewal of car insurance. In case you are still not aware of these, below we have explained car insurance discount that can help you bring down the cost of your car policy premium:

      1. Early Bird Discount

        Insurers also offer early bird discount to the policyholders in case of fresh purchases and car insurance renewal premium. This type of discount is usually valid for a limited time period thus encouraging customers to book a policy at the earliest.

        Currently, in association with a few insurers is also offering an Early Bird Discount on car insurance renewals. You can choose a comprehensive car insurance policy from any of these insurers and avail a discount on your insurance premium.

        • Bajaj Allianz Car Insurance
        • Kotak Mahindra Car Insurance

        Below is a table stating the discount offered by these insurance companies: 

        Days to Expiry Discount Percentage (%)
        30 days or more Upto 10%
        21 days or more but less than 30 days Upto 7%
        15 days or more but less than 21 days Upto 5%

        Digit car insurance is also offering an Early Bird discount on OD premium on The discount offered is mentioned in the table below:

        Plan Days to Expiry Discount Percentage
        Non Zero Dep 7 or more days 7.50%
        With Zero Dep 7 or more days 12.50%
      2. Anti-Theft Discount

        A discount of about 2.5% on OD premium is given to car owners who have secured their car with an anti-theft device approved by the Automotive Research Association of India (ARAI). Installing an approved anti-theft device will reduce the chances of theft thus reducing the liability of the insurer thus helping you to lower your car insurance premium

        Almost every insurance company in India offers this type of discount to its policyholders.

      3. Voluntary Deductibles

        Voluntary Deductible refers to the amount a policyholder voluntarily agrees to pay during a claim settlement process. This amount is deducted from the claim amount and the rest is paid by the insurer during a claim. If you choose a higher voluntary deductible amount at the start of your policy, your insurer will reduce the premium of your four-wheeler insurance policy since some of their liabilities get reduced. 

        Here is a table stating the voluntary deductible amount and its impact on the payable insurance premium through the following table

        Amount of Voluntary Deductible Voluntary Discount in Car Insurance
        Rs. 2,500 20% on the own damage premium, subject to a maximum amount of Rs. 750
        Rs. 5,000 25% on the own damage premium, subject to a maximum amount of Rs. 1,500
        Rs. 7,500 30% on the own damage premium, subject to a maximum amount of Rs. 2,000
        Rs. 10,000 35% on the own damage premium, subject to a maximum amount of Rs. 2,500

        The discount grids mentioned above are just an example. The actual discount grids may vary as per the insurers.

      4. NCB Discount

        NCB or No Claim Bonus is another type of car insurance discount offered by almost every insurer in India. This discount is offered on motor insurance renewal premium for not raising a claim during a policy year. 

        This discount can go from 20% to 50% on renewal premiums if accumulated for 5 continuous policy years. However, as soon as the policyholder raises a claim, the whole NCB% received gets nullified.

      5. AAI Membership Discount

        Car insurance companies in India also offer discount on motor insurance premium to policyholders who are members of the Automobile Associations of India. This discount could be 5% or a maximum of Rs. 200 on the OD premium for private cars. So, sign up for a membership of AAI to get exclusive benefits before purchasing a motor insurance policy. 

      6. Discount on Vintage Cars

        Many insurance companies also offer discounts on vintage car insurance premiums. If you have purchased a vintage car or are planning to get one, make sure to avail the benefit of this type of discount. Cars that are duly certified by the Vintage and Classic Cars Club of India are eligible for up to 25% off on OD premium.

      FAQs on Car Insurance Discount

      • Q1. How to prove no claims discount on car insurance?

        Ans: A No claim bonus reward is offered to a policyholder when you do not raise a claim during a policy year. To prove no claim bonus on your car insurance you can check your motor insurance policy document, or you can also obtain an NCB certificate from your previous insurer as proof of NCB.

      • Q2. What is OD Discount in car insurance?

        Ans:An OD discount refers to the discount offered on own damage four-wheeler insurance premium. OD discount can be received via NCB reward, voluntary deductibles or by opting for the Pay as you Drive plan.

      • Q3. What is a disability discount on car insurance?

        Ans: Many insurance companies offer a discount on OD premium on vehicles that are specially designed or modified for use by disabled and mentally challenged people. This discount can be up to 50% on OD premium.

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