It is mandatory for every car owner to purchase car insurance. Furthermore, it’s important for them to renew car insurance. However, to get car insurance renewal, policyholders must pay premiums regularly. Thus, many policyholders look for ways to lower the premium amount.
Here are some ways to reduce car insurance renewal cost-
- Opt for a Higher Deductible
The deductible is a part of the claim amount that policyholder needs to pay. In case a policyholder opts for a higher deductible, then the insurance company can lower the premium amount. This is applicable to an own damage premium only. Third party liability insurance premiums are fixed by the regulator body.
- Insured Declared Value (IDV)
IDV (Insured Declared Value) is the maximum sum assured by the insurer that a policyholder is supposed to receive in terms of compensation at the event of total damage or loss occurred to the insured vehicle. The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation. Hence, higher the IDV, higher the premium.
- Compare Different Plans
There are many car insurance plans such as the plan that covers own damage, third party cover and personal accident cover for 1 year; Bundled plan that covers own damage, third party (for 3 years) and personal accident cover (for 1 or 3 years) and stand-alone own damage plan. Thus, it becomes essential for people to compare different plans that suit their needs before selecting one. They should check the benefits and the premiums of the plans. This can help them choose the right plan.
- Renew the Plan Online
The process of car insurance renewal online is very easy and time saving.
- Renew the Policy Before it Expires
It’s very important to renew car insurance plan before it expires. If a policy lapses, then the policyholder loses No Claim Bonus discount and can’t avail its benefits. it’s crucial to renew car insurance before it expires. Premium may increase if car insurance policy is applied after the renewal period is expired
- Install Security Devices in the Car
In case a car owner installs security devices in his/her car, then he/she can protect it from theft. As such devices reduce the likelihood of theft, they lower the risk for insurance companies. Thus, they might lower the premium amount for people who have installed security devices in their car that is approved by the Automobile Research Association of India (ARAI)
- Avoid Making Small Claims
When a policyholder doesn’t make a claim during a year, he/she can avail No Claim Bonus discount on year basis which can lower the premium amount on renewal of the policy. Therefore, it’s recommended to avoid filing small claims in order to reduce the renewal premium cost.
Renewing car insurance is necessary if you own a car. To avail the benefits of car insurance, you must renew it. Thus, you’ll have to pay premiums regularly for car insurance renewal. These are a few ways that can help you save money on renewal cost.