Are you tired of finding ways to reduce the cost of your car insurance renewal? Well, the good news is there are several ways by which you can reduce your car insurance renewal cost. In contemporary times, every Indian car is required to have a genuine car insurance policy so that it can run legally on the roads. At the same time, car insurance policies are a compulsory requirement under the Motor Vehicles Act, 1988.
In maximum cases, the policy arrives with a one-year tenure after that it is required to be renewed. When it comes to renewing car insurance, you need to pay the renewal premium, and the policy gets renewed. Now, the interesting part is there are particular scopes by which one can decrease the renewal cost of the premium on the car insurance policy.
The Lesser-known Ways to Decrease the Cost of Car Insurance Renewal
- Compare insurance policies
- Utilize the accumulated NCB
- Select a voluntary deductible
- Search for discounts
- Renew the policy online
Compare insurance policies
It is needless to say that there are more than a dozen car insurance policies in the current market. Also, individual policies have their own rate which is different from the others in the market. Hence, the ideal way to get the best rate of premium and to decrease the car insurance renewal premium, comparing policies is indispensable.
It is wise to start by searching online and compare the various car insurance online plans in the market. It will help in making an informed decision based on which plan offers satisfactory coverage besides low premium rates. It is also possible to switch insurance policies on renewal. Therefore, it is significant to find the best coverage which has affordable premium costs and then decide to renew car insurance. This is how one can reduce their car insurance renewal cost easily.
Utilize the accumulated NCB
One can also benefit from the discount offered by car insurance policies when no claims are made in the entire policy term. It is referred to as a No Claim Bonus (NCB) discount.
Benefits of NCB in Car Insurance:
- High savings
As told before, NCB allows a policyholder to fetch a discount when it comes to policy renewal. In other words, you will have to pay less premium than what you had to pay if you raised a claim. Many car owners are choosing car insurance these days because they have a hassle-free purchase process, one-click renewal, unbiased quotes, and 24/7 claims support.
Nonetheless, NCB is incremental when you follow the rules. Car owners who don’t raise a claim enjoy a sizable discount on policy renewal for many years.
Furthermore, NCB is linked with the requirements of the car owner and not the car. In other words, one has the scope to carry forward the NCB when they decide to sell the old car and buy a new one. NCB also stays with the car owner if they decide to port their policy to another insurer.
Select a voluntary deductible
Voluntary deductible can be defined as the part of the claim that a person voluntarily chooses to pay themselves. If you select a voluntary deductible limit, the insurance company's claim liability decreases. Subsequently, the company offers a premium discount. It is possible to get a discount on your renewal premium by choosing a voluntary deductible. On the other hand, one should remember that it will decrease the claim percentage receivable.
Search for discounts
In the present car insurance market, there are different types of discounts available in policies. Searching for discounts is necessary to reduce the renewal premium. There are several types of discounts available, such as discounts for installing safety devices in the car, for becoming a member of reputed automobile associations, and others. It is advised to search for these discounts when renewing a policy as it will decrease the renewal premium.
Renew the policy online
If you have decided to renew your policy, there are two ways to do it – online and offline. In many cases, offline renewals lead to higher premiums as there might be the involvement of a middleman who gets a commission to renew the policy. Hence, the premium costs become high because it includes the commissions of the middlemen.
However, the online option allows buying the policy directly from the insurance company. Since it is done online, it is not required to visit the office of the company. Consequently, the premiums become lower than the offline renewal cost.
The above-given points are the ideal ways to reduce the cost of car insurance renewal. It is advised to remember all these tips if the aim is to decrease the premium cost. However, the main part is to search and compare policies on the internet as well as search for the highest discount rates when comparing policies. For more information regarding car insurance renewal at affordable rates, contact us today.