07 Smart Tips to Save Money When Renewing Car Insurance

Is your car insurance policy due for renewal? Well, make sure that you renew the car insurance policy on time and remain on the right side of the law. Buying or renewing the car insurance policy is not another compliance-related activity. The repercussion of not having a valid car insurance policy is not good. It could lead to both legal and financial trouble. You can renew car insurance online in a hassle-free manner. Do you wish to save money? Well, read ahead, as we have compiled some helpful tips that would help to save you money during the car insurance renewal process.

Here are Handy Tips for the Car Insurance Renewal

Here is a rundown of handy tips that will help you to save money when renewing the car insurance policy:

1. Renew on Time

Renewing car insurance on time is important. When the policy is renewed before time, the premium is locked for the complete year. The coverage of the renewed policy will begin only once the existing policy expires. It means that there will be no gap in the insurance coverage, and the benefits remain intact. In case you are planning to buy a plan, consider buying Bajaj Allianz car insurance.

2. Review the Add-on Cover

Before renewing the comprehensive car insurance policy, assess the additional covers that are attached with the base plan. It is possible that earlier you would have opted for certain add-on covers, which were important then. When it comes to car insurance renewal, reviewing the requirement is good. Not every add-on cover is important so drop the ones that are not useful. It will help to bring down car insurance premiums.

3. Avoid Modifications

Undoubtedly improving the aesthetics of your vehicle by doing modifications like the interiors of the car, wheels, and so forth will give a car an impressive look. However, if you do not know, any such modification will lead to a high car insurance prices. It is because the expense of repairing any modified part will be on a high-end. Hence, if you wish to not pay a high premium amount, avoid doing additional modifications.

4. Look into IDV

Insured Declared Value is the maximum sum that is paid by the insurance company to the policyholder. It happens under complete loss or theft of the four-wheeler. To put it simply, IDV is the sum assured of the car insured. It is determined by considering the present value of the car and then the depreciation factor is applied to it. Selecting an IDV is important, as a high IDV means high premiums and vice-versa. Choose the right IDV as it will help to avoid paying high car insurance premiums. Besides, it also shields from any financial loss that might arise due to total loss or theft of the vehicle.

5. Using No Claim Bonus

If you had a claim-free year, it means you are entitled to a No Claim Bonus. The NCB accumulates each year till it reaches 50% of the ceiling limit. It is better to use the accumulated NCB as this will be helpful to reduce the car insurance premium. A tip for all car insurance policyholders would be to avoid small claims. As the accumulated NCB provides a higher benefit than what you would spend on the small repairs. Also Read: Insured Declared Value (IDV) In Motor Insurance: A Complete Guide

6. Install Anti-theft Device

Installing the anti-theft tools increases the security level of your car. When your car has anti-theft devices installed, the insurer also provides a discount on the car insurance premium. The anti-theft devices should be certified by the Automotive Research Association of India. An anti-theft device also minimizes car theft chances. Also Read: Role Of Anti-Theft Device And Its Impact On Car Insurance Premium

7. Go for Voluntary Deductibles

Check with the insurer in regards to the voluntary deductibles. It means that you have the alternative of pitching in towards the payable claim and sharing the part from your pocket. In simple words, you pay a certain percentage of each claim, and in return, the insurer will reduce the car insurance premium payable by you. However, it reduces the claim amount, hence, choose wisely.

The Bottom Line

An eventuality will not come with prior notice. Do not miss on timely car insurance renewal. A car insurance policy will protect you financially against any adversities. Use the tips above while renewing the car insurance policy in India and save money. Moreover, make sure that you carry a valid driving license, PUC certificate, insurance paper, and registration certificate. To avoid claim rejections in the future drive safely, slowly, and not under any alcohol influence. Happy Driving! *Standard T&C apply   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘