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Business News/ Brand Stories / 5 Simple Ways to Save on Your Car Insurance Premium
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5 Simple Ways to Save on Your Car Insurance Premium

This article shares some actionable tips to help you save on rising premiums while buying car insurance online

Car insurance premiums have been on the rise, prompting vehicle owners to seek ways to lower their insurance premiums while ensuring comprehensive coverage.Premium
Car insurance premiums have been on the rise, prompting vehicle owners to seek ways to lower their insurance premiums while ensuring comprehensive coverage.

The importance of car insurance is often overlooked. In India, car insurance is not just a legal requirement but also a shield against unexpected financial burdens. As the cost of living rises and the automobile sector evolves, navigating through the intricacies of car insurance becomes paramount. Car insurance premiums, in particular, have been on the rise, prompting vehicle owners to seek ways to lower their insurance premiums while ensuring comprehensive coverage. This article shares some actionable tips to help you save on rising premiums while buying car insurance online.

Assess your coverage needs 

To lower your car insurance premiums, it's essential to assess your coverage needs accurately. Car insurance policies in India typically offer two types of coverage: third-party liability and comprehensive car insurance. While third-party liability insurance is mandatory by law, comprehensive coverage provides additional protection against damages to your vehicle. You need to evaluate your driving habits, the value of your car, and your financial capacity to determine the appropriate level of coverage required.

  • Third-party liability insurance: Mandatory by law under the Motor Vehicles Act, 1988, it covers damages and injuries caused to third parties in accidents involving your vehicle.
  • Comprehensive coverage: Offers broader protection against damages to your vehicle due to accidents, theft, natural calamities, and vandalism. It also includes third-party coverage.
  • Evaluate driving habits, car value, and financial capacity to determine the required coverage level.
  • By understanding your coverage needs, you can avoid over-insuring or under-insuring your vehicle, thus optimizing your insurance premiums.

Compare quotes from multiple insurers 

In the digital age, comparing car insurance quotes from different insurers has never been easier. Online platforms or insurance providers’ websites allow you to effortlessly compare premiums, coverage options, and additional benefits offered by various insurers. Bajaj Finance Insurance Mall is one such platform that offers a wide range of car insurance plans from leading insurance providers, allowing you to compare quotes and choose the policy that best suits your needs and budget. Take advantage of this transparency in pricing to identify insurers offering competitive rates without compromising on coverage.

  • Online platforms facilitate effortless comparison of premiums, coverage options, and additional benefits.
  • Utilise transparency in pricing to identify insurers offering competitive rates without compromising coverage.
  • Leverage exclusive discounts and deals offered online.

Opt for higher deductibles 

Deductibles refer to the amount you agree to pay out of pocket before your insurance coverage kicks in. Opting for higher deductibles can lower your insurance premiums significantly. While it may require a higher upfront payment in the event of a claim, it can result in substantial savings over time, especially if you are a safe and responsible driver.

Insurance companies consider policyholders with higher deductibles less likely to file small or frivolous claims, thereby reducing their risk exposure. As a result, they offer lower premiums to incentivise higher deductibles.

  • Deductibles refer to the amount paid out of pocket before insurance coverage kicks in.
  • Higher deductibles can significantly lower insurance premiums.
  • Ensure sufficient funds are set aside to cover the deductible amount in case of a claim.

Maintain a clean driving record 

Your driving history plays a crucial role in determining your car insurance premiums. Insurers reward safe and responsible drivers with lower premium rates, while those with a history of accidents or traffic violations may face higher premiums. By maintaining a clean driving record, you not only ensure your safety on the road but also enjoy the financial benefit of reduced insurance costs.

By practising defensive driving techniques, adhering to traffic rules, and avoiding accidents, you can demonstrate your reliability as a policyholder and qualify for lower insurance premiums.

  • Insurers reward safe and responsible drivers with lower premium rates.
  • Traffic violations, accidents, and claims history indicate higher risk and result in higher premiums.
  • Practice defensive driving techniques, adhere to traffic rules, and avoid accidents to maintain a clean driving record.

Take advantage of No Claim Bonus (NCB) 

No Claim Bonus (NCB) is a reward offered by insurers to policyholders who do not file any claims during the policy period. NCB accumulates over time and can result in significant discounts on your car insurance premiums. It serves as an incentive for safe driving and responsible claims management.

Insurers typically offer NCB ranging from 20% to 50%, depending on the number of claim-free years. Additionally, NCB is transferable between insurers, allowing you to retain your accrued bonus even when switching policies. By leveraging NCB, you can enjoy substantial savings on your car insurance premiums over the years.

  • NCB rewards policyholders who do not file any claims during the policy period.
  • NCB accumulates over time and results in significant discounts on insurance premiums.
  • Transferable between insurers, you can retain accrued bonus when switching policies.

Navigating the car insurance landscape in India requires a strategic approach to mitigate rising premium costs effectively. By assessing your coverage needs accurately, comparing quotes from multiple insurers, opting for higher deductibles, maintaining a clean driving record, and leveraging the No Claim Bonus, you can optimise your insurance premiums without compromising on coverage. Remember that proactive risk management and prudent financial planning are key to securing affordable and comprehensive car insurance protection. Embrace these tips and embark on a journey towards financial security and peace of mind on India's bustling roads.

At Bajaj Finance Insurance Mall, we understand the importance of securing affordable and comprehensive insurance coverage for your car. Our platform offers a wide range of car insurance plans from leading insurance providers, allowing you to compare quotes and choose the policy that best suits your needs and budget. With a user-friendly interface and transparent information, finding the right insurance coverage has never been easier.

T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, The New India Assurance Company Limited, Cholamandalam MS General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. URN No. BFL/Advt./23-24/232

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.

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Published: 23 Feb 2024, 03:32 PM IST
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