Tips to save-on your car insurance renewal premium Car insurance policy safeguards you and your car from any untoward incident and legal liabilities. Hence, it is essential to remember your car insurance renewal date and pay the renewal premium timely. However, before renewing your premium with the same insurance provider do pay heed to the following tips so that you do no land up paying more premium than required. Accurate information: If you provide accurate information of the details demanded by the insurance provider you can save a good amount. Make and model of your vehicle: The model type of your car is quite important in the calculation of the premium. If as per the insurer, the model type of your car is prone to road-accidents, then the renewal premium of the car would be higher. No claim bonus (NCB): The premium consists of two parts; own damage and third party damage. NCB is offered on the “own damage� part of the premium. It refers to the discount being offered (in percentage) on the renewal premium for not claiming any insurance over a policy year. The NCB amounts to 20% discount in the second policy year and can mount up to 50% discount in the sixth policy year. However, if a claim is
made within a policy year then the NCB discount is not applicable. Read more here: Third Party Insurance.
Deductibles: Deductibles are directly proportional to premium discount. Deductibles are of two types: Voluntary and Compulsory. In both types of deductibles, certain amount of monetary loss has to be borne by the insured while filing a claim. Though deductibles reduce your premium but in case of damage you may have to shell out a hefty amount from your own pocket. Avoid claims for minor damage: The more claims you file, the more would be your next premium. Hence, if you car encounters minor dents or scratches avoid filing a claim as this would result in higher premium in next policy year and you would also lose NCB discount in the subsequent policy year. Think rationally, as there is no point in filing a claim if the repair cost of minor damage is negligible.
Installation of safety devices: If you car has safety devices installed by a reputed company considered by your insurer, you can further avail some percentage of discount on your premium. The safety devices like anti-theft locks or airbags provide protection to your car and also help you reduce your car insurance premium. Keeping the above factors in mind would be beneficial for you as there is no escapism from buying insurance as third-party insurance is mandatory in our country but these factors would help you lower your premium to a great extent.