In India, motor vehicle insurance is mandatory as per the law. Having an active insurance for vehicles plying on the road as protection against accidents and mishaps is a must. As per the Motor Vehicles Act, the base insurance cover should consist of protection against liabilities arising out of injury/damage to a third party person/property.
For passenger cars, the Auto Insurance cover is valid for an year from the time of activation. It has to be renewed through available channels before expiry to ensure continuity. For some of us, renewal means additional financial burden since the premium amount is slightly on the expensive side. On the contrary, there are quite a few hacks that will help you save money at the time of renewal. Let's explore the most prominent ones and tell you how you can save hundreds or perhaps a few thousand rupees.
Don’t Claim for Minor Damages
Try to pay for minor damages yourself if your personal budget permits. Claiming minor damages such as a broken tail lamp or small dent can rob you of the NCB (No Claim Bonus), a discount offered to the insured member by the insurance company for not making any claims during the previous policy year. This discount is applied when you make a renewal payment and can be quite a pleasing amount. Therefore, you may want to let go smaller claims for a bigger monetary benefit at the time of renewal.
Transfer Insurance to the New Car
If you didn't know, an active Auto Insurance can be be transferred to a new car if you’re planning to do away with the old one. By doing so, you not only save money on future renewals, but also get to carry existing benefits such as NCB and others to the new car. Further details on this front can be obtained from the insurance company.
Install Anti-Theft Gadgets
Most of the insurance companies offer a discount on the premium payable if you install anti-theft devices in your car. It reduces the “risk” factor for the insurer and therefore, they are willing to pass on the benefits to the insured member. Make sure to read or inquire about this clause before the renewal to take advantage. Installing the latest gadgets in this regard also helps to keep your car secure.
Compare Policies Online
The easiest way to save money on premium payments is achieved by comparing Auto Insurance policies online. As a well informed customer, you can either use multiple resources to compare the prices and features or simply use the resources available on comparison websites such as BankBazaar.com to check the features. This way, you not only get to consider switching over for cost benefits, but also get customized deals.
This is our list of the choicest ways you can save money on your Car Insurance. Do remember to initiate the renewal just before policy expiry to ensure continuity in cover and also to save on additional charges such as inspection.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017