Insurance is like a spare tyre. You may not require it, but not having one is not an option.

8 auto insurance discounts that you simply should not miss

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At the time of a car insurance renewal, most policyholders would continue with the same insurer and coverage. They do not pay heed to the fact that there are a plethora of options available in the market today, that could present them with adequate coverage on reduced premiums. The options provided by insurers for slashing premiums are in the form of add-on coverages and discounts that should be carefully chosen.

Here, we elaborate on car insurance discounts that could help in bringing down your premium to a competitive value:

  1. Voluntary deductibles

    The part of a claim amount that is borne by the policyholder is called a deductible, and it has two components - Voluntary and Compulsory.

    The compulsory deductible is a fixed amount that the insurer informs in advance to the policyholder. The voluntary deductible is an amount that the policyholder volunteers to pay when he raises an accident claim. This amount is also predefined in the insurance policy, and should be furnished before the insurer reimburses the remaining amount.

    An increase in the voluntary deductible amount corresponds to a lower premium. But while opting for this, you should be aware of the fact that you will be required to bear a larger amount of expenses at the time of a claim.

  2. No-Claim Bonus (NCB)

    The NCB is a discount in premium that is offered by the insurance provider to the car owner for not filing claims during the term of the auto insurance policy. Effectively, this is a reward given to the policyholder for judicious use of the vehicle. If needed, the NCB can be transferred to a new insurance policy by the vehicle owner. This is because the discount is associated with the owner of the vehicle and not the car.

    The NCB contributes to a significant discount in premium, ranging from 20% to 50%, for subsequent claim-free years. A policyholder can continue to avail the NCB only if the policy is renewed within 90 days of the expiry date.

  3. Discounts based on profession

    Some insurance providers offer discounts based on the profession of the policyholder. So, for instance, if you are a doctor or work in the armed forces, you will be eligible for such reductions in premium.

  4. Discounts based on age

    Discounts in premium are offered to people of a certain age group.

    • New drivers and teenagers are offered much higher premiums because they are statistically found to be more slack in their driving, when compared to more experienced drivers. They have been found to have a greater tendency for overspeeding, and more often than not, tailgate the car in front of them. The instances where teenagers were found driving without seatbelts are also higher in comparison.
    • Drivers in the age group of 25 to 65 years are benefitted the maximum from this car insurance discount. However, a good driving record and a favourable credit history are valuable in availing this reduction in premium. Additionally, the model and make of the car, the area where it will be parked, and the distance that it is usually driven for also influence the premium amount.
    • After a driver crosses 65 years of age, his car insurance rates start creeping up. This is due to the insurer’s assessment of age-related risks, such as impairment in vision, use of medicines, and poorer cognitive abilities. Older adults are also found to be involved in more serious accidents when compared to younger drivers.
  5. Membership in AAI or WIAA

    All insurance providers recognise members of the Automobile Association of India (AAI) and Western India Automobile Association (WIAA) by offering them a fixed discount in premium.

  6. Installation of security devices

    If your vehicle has been installed with an anti-theft device that is approved by the Automotive Research Association of India (ARAI), then you are liable to receive a discount on your car premium. Since this discount is offered with all types of insurance policies, it is wise to get your car updated with the relevant security systems.

  7. Discount on own-damage

    This is a discount offered by insurance providers to drivers who possess good driving records. These drivers are considered to have lesser risk of accidents, and are safer on the roads.

  8. Reduction in third-party insurance coverage

    Car owners can request for a reduction in the amount of coverage provided as part of third-party liability. When the insurer provides you reduced third-party cover as part of your auto insurance, they also slash the premium accordingly.

    Armed with the above information, you will be able to research online and identify an appropriate insurer and policy, with an attractive premium to suit your needs.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Claim Reviews

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  • HDFC Ergo Car Insurance
    "Need to reduce the premium"
    0.5 4.5/5 "Excellent!"
    I had a car insurance with HDFC Ergo and I felt the premium is very high hence I changed my insurance provider. The customer service is very good. There was no claim experience. The policy period is one year. It is a zero dep policy which includes bumper to bumper and RSA. It is a first party insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • New India Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    My car insurance was recently purchased with New India Assurance through online. When I logged into the online site it gives better option with multiple insurer and I felt New India Assurance is good with reasonable premium and better benefits. I have paid 13,500 rupees for a year. I got the insurance paper. The claim experience is very good.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • ICICI Lombard Car Insurance
    "Good Policy."
    0.5 3.0/5 "Satisfactory"
    I have bought my car insurance with ICICI Lombard for last 5 years which I'm continuing for with the same company. The claim experience was better and when i applied for the same, they have given upto 80%. Its covered with bumper to bumper facility. They have given the claim in 1 week.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 22, 2019
  • Royal Sundaram Car Insurance
    "Good policy "
    0.5 5.0/5 "Blown Away!"
    My car insurance was purchased in the year 2014 with Royal Sundaram. My dealer has recommended me about this policy. I pay the premium amount of Rs. 14000 with the coverage value of Rs. 6.27 lakhs which covered with the bumper to bumper facility.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jan 22, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 3.0/5 "Satisfactory"
    I had taken this insurance policy a while back and the premium amount has been quite good and not too high. The payment method has been easy and there has not been any sort of charges, and the policy covers bumper to bumper. Their customer support has also been responsive and was helpful as well.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 22, 2019
  • ICICI Lombard Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    There was no claim experience for my Tata Tiago with ICICI Lombard. I have renewed the car policy at last june, I paid the amount around Rs. 10,600 because its around 1.5 year old vehicle. I took comprehensive plan which includes loss , damage, ICICI Lombard got tie up many showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Best cover"
    0.5 4.0/5 "Great!"
    Very recently I took policy from Car insurance for my new Baleno car, it was done by ICICI bank, they deducted insurance fee from the loan. The loan department issued the policy copy on time. For first year its 100% coverage available its a bumper to bumper with ex showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Good Car Insurance policy"
    0.5 4.0/5 "Great!"
    I have selected the ICICI Lombard for my car since the dealer has given me this insurance. I have been paying the premium amount of Rs. 15000. This is not covered for the bumper to bumper facility. They have given me a IDV value of Rs, 3.10 lakhs. They are providing the good garage facility all over the city.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • United India Car Insurance
    "Yet to experience the policy"
    0.5 3.0/5 "Satisfactory"
    I have applied the claim for my car recently. I have given the car into the showroom and they have asked me to inform in the insurance company. When i visited other branch they have asked me to the home branch. They have given me a sufficient IDV value. Its covered with a bumper to bumper facility.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Reliable Policy"
    0.5 5.0/5 "Blown Away!"
    Purchased my car insurance through ICICI Lombard and They have given me a low premium since i have taken a loan from ICICI bank. They have given me a good IDV value. This is a bumper to bumper covered policy. They have given me a road side assistance, no claim bonus benefits.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 21, 2019
  • National Insurance Car Insurance
    "Good Insurance"
    0.5 3.0/5 "Satisfactory"
    My Honda amaze car got insured with National insurance for one year of tenure period. I think my old premium amount was around Rs.30,000. I took first party comprehensive plan it covers for loss, damage, theft. The customer support is good even the IDV is good.
    Was this review helpful? 0
    , bhubaneshwar
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Competitive price"
    0.5 5.0/5 "Blown Away!"
    I have taken a car insurance from ICICI Lombard and the service is really good. I spoke wtih the customer care once for the claim. The garage people taken care of the full settlement process. The premium amount is nominal. They have given me a best claim what they can offer according to their norms.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • Royal Sundaram Car Insurance
    "Economic offering and wide accessibility"
    0.5 5.0/5 "Blown Away!"
    Because it was good comparison between other companies hence i have chosen the Royal sundaram. The premium amount is reasonable. The IDV value is good. This a comprehensive policy which covers third party insurance. They have tie up with most of the garages. They have cashless facility in most of the places.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • Royal Sundaram Car Insurance
    "Average"
    0.5 3.0/5 "Satisfactory"
    I took my car insurance with Royal Sundaram. I never contacted the customer service. It is a default insurance from the showroom. The premium is high because I go for bumper to bumper offer, road side assistance, zeo dep. It is a first party insurance and no claim. The policy period is one year.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • SBI General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    The showroom people has offered me a car insurance policy with SBI. I have made a premium amount of Rs. 22000. They have given me a coverage value of 100%. Total IDV value is 90% of the car value. I have no claim experience till now. The documentation process was done by showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • National Insurance Car Insurance
    "Smart protection with National"
    0.5 4.0/5 "Great!"
    The major factor to chose National Insurance because of the premium is economic, I took the policy for 3 years the IDV value remains the same for the whole tenure. The customer support is good on time they activated the policy. I have Tata Tiago , its around four months vehicle. Its zero depreciation comprehensive plan. I taken the policy through showroom.
    Was this review helpful? 0
    , lucknow
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Satisfied with the policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance is with ICICI Lombard. The customer services are good and I got the policy documents on time. The policy coverage is good and there are features of a road side assistance is there. The premium is economical too. Good overall.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Need to reduce the premium"
    0.5 3.0/5 "Satisfactory"
    I had a car insurance from ICICI LOMBARD which was offered by the showroom at the time of purchasing the vehicle. I felt the insurance premium is very high compared to others. I got a reminder call from the customer service at the time of renewal. It has zero dep for one year.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I took my car insurance from TATA AIG through online channel. They have given lesser premium with zero dep and it includes road side assistance. The customer service is very good. The policy period is one year. I have no claim experience. It is a first party insurance.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Satisfied policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG is the best company to take the car insurance. Since long time i have taken this insurance. The customer care people used to call me to renew the policy and they used to policy renewal letter. I will do payment through online. Several times i have claimed the policy and i have received very good response.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Jan 18, 2019
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