It’s a good thing we’re all required to insure our cars in a country with lousy roads and arguably difficult traffic conditions. We renew our car insurance every year since the government has made it required.
GIBL.IN can help you get a step closer by assisting you in finding easy ways to reduce your car insurance premium so that it does not put a dent in your wallet.
Here’s a list of things you can do to lower your insurance premiums without needing to make any substantial policy changes.
Do Not File a Claim for Minor Expenses
If the cost of repairing your car is less than the amount that your NCB may potentially accumulate, you should pay for it yourself rather than filing a claim on your policy.
If you make a claim after earning a good discount, your premium will almost certainly double back to the original amount you paid at the commencement of your policy. You’d think that all those years of careful driving and prudent living have gone down the drain.
Increase the Voluntary Deductible
The deductible is the amount you agree to pay toward repairs or claims before your insurance kicks in. You can choose this voluntary deductible value at the start of your insurance or upon renewal, and the greater you choose this number, the lower your premium will be.
But keep in mind that you should only raise your deductible as much as you can afford. Putting a hefty deductible out of your grasp only to lower your annual rate will only defeat the objective of your claim.
Assume you have a claim of Rs. 30,000 and a Rs. 20,000 voluntary deductible. If your annual premium was Rs. 18,000, it would be reduced to Rs. 15,000. You would pay Rs. 20,000 at the time of any claim, while your insurance company would pay Rs. 10,000.
Renew Your Policy Before It Expires
If you haven’t renewed your expiring policy yet, you’ll have to start all again. This means you may need to get your vehicle inspected again, which you will have to pay for. Consider how your car insurance rate will be recalculated, and you may even face price increases.
You certainly don’t want to throw away your bonus! It’s just one annoyance after another. If you want to avoid paying more and being trapped in inconvenient situations, renew your insurance before it expires.
State your IDV correctly
The Insured Declared Value (IDV) of your car is, as the name implies, the value determined by the insurance provider. Depreciation is applied to the original market price to compute IDV. This IDV is the maximum amount your insurer will pay if your car is stolen or completely damaged. If you accurately state your IDV, you may be entitled to a lower premium.
However, if you are too self-centered and register a very low IDV with your insurer, keep in mind that if you file a claim, that is the maximum amount of money you will receive from the insurance company against your own declared value of the vehicle. The best method to go about it is to state the correct IDV, which will ensure that you obtain your rightful claim and will also help you save money on your premium.
Transfer your NCB
It’s only fair that the lead is maintained, as this will help the test match’s outcome. Similarly, you must transfer your NCB-lead from your previous vehicle to the new one.