Easy Tips & Tricks to Cut Down Your Car Insurance Premium
Oct 03, 2022
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India has one of the highest number of cars in the world, with most of these numbers being concentrated in the urban area. However, due to the rapid upgradation of urban areas, the number of cars that one can find in the cities is more than ever. Such rapid growth in the number of cars put a huge burden on the infrastructure.
Increase in traffic can have a negative impact on the conditions of roads. Increase in traffic also means more accidents. One of the ways to ensure protection for you and your car from accidents is by purchasing a good car insurance. There is a misconception this insurance is quite costly. However, there are ways to reduce the premium of your four-wheeler insurance. Read on to know about these tips and tricks to reduce the premium of this policy.
- Installation of anti-theft devices
With the sudden increase in the number of car thefts, the concern about the safety of the cars is getting highlighted a lot. Many car buyers tend to avoid getting safety devices installed as they believe it increases the cost of the car for them. However, lack of antitheft devices increases the chances of cars getting stolen. Installing antitheft devices in your car has two benefits, one being the security of your car. These devices ensure your car gets an added layer of security. Secondly, they help in the reduction of the premium of your insurance by a lot. Do keep in mind to get them installed from your car manufacturer only.
- Do not overload your policy
In your insurance policy, you have the option of including add-ons/riders. These riders enhance the overall protection that is offered by the policy. Riders such as zero-depreciation cover, no-claim bonus protection and roadside assistance are some that enhance the coverage of the policy. However, they also increase the price of your insurance policy. People tend to include all of the riders in their policy even if those riders might not get utilised by them. This means that they are wasting their money by including unnecessary riders. Avoid doing this and include only those riders that you feel should be included in the policy. This will help you greatly in saving a lot. You can easily customise your policy using the car insurance app of your insurer.
- Do not make modifications
Many car owners modify their cars to enhance its performance. While it may seem normal to do so, it can impact the price of car insurance. When you purchase insurance for your car, the original parts of the car get insured by the policy. However, when you change any part of the car to boost the performance of the car, this increases the cost of the policy. As such parts are quite costly, your insurer will be required to compensate more for that part after a claim is filed in the event of an accident. If you were to modify your car in any way possible, keep the modifications to a minimum so as to avoid escalating the cost of your policy.
- Do not make small claims
When you do not file a claim against your insurer during the term period of the policy, you get to enjoy a no-claim bonus discount. This discount is given on the premium payment for the policy’s next term. This means you have to pay a lower premium than your current premium. However, many policyholders tend to file claims for smaller damages. These damages can be easily covered by the policyholders themselves. However, they tend to file a claim to get compensation for smaller amounts. This means losing the no-claim bonus. If you wish to enjoy the benefit of the no-claim bonus discount, do not file a claim for damages which cost low and can be paid for by you.
Conclusion
These are just a few tips that you can follow to reduce the premium that you pay towards your policy. If you are planning on buying a new car, you can now buy car insurance online in just a few steps. Buying insurance online also helps in saving money on your premium.