Who doesn’t like a good markdown in price? Be it your brand new mobile phone or that car you are planning for a long time, any concession will help you save money in the long run. It is true even in case of car insurance policies. Since it is a legal requirement for all car owners to have a four wheeler insurance cover, there is no skipping it. But at times, car insurance policies with its various add-on facilities can become an expensive affair. While coverage for your car’s safety is essential, it need not come at the cost of breaking your bank account. This article has some nifty tips that will help you save money when renewing your insurance plan.
Selecting the right policy: With myriad car insurance policies available, it can get perplexing in selecting the right insurance cover. Selecting a wrong insurance plan will cause a leakage of resources without any benefit. Thus, it is essential you select the right insurance plan. At every renewal you should evaluate the coverage of your policy and the benefit it accrues. With two main types of insurance plans to choose from, third-party and comprehensive, selecting can be based on the coverage you seek from your insurance plan.
Setting the right IDV: IDV or insured declared value is the approximate value of your car. While it is often confused with the resale value, it differs significantly. Also, the IDV directly impacts the premium for your car. Setting a higher IDV will see a rise in premium and vice versa. IDV is one of the key factors that are a reason for the premiums of your policy. Hence, evaluate the IDV at each car insurance renewal so that you do not end up paying a hefty premium.
Being a part of automobile association: Affiliations to automobile associations help you avail concession in your insurance premiums. So, if you are on the hunt for some saving in your insurance premium, consider joining an automobile association. It is one of the legitimate and hassle-free ways to get concessions in premium.
Avail NCB benefits: Not making frequent claims has its perks. These benefits accrue in the form of no-claim benefits or NCB. Availing the benefit under NCB will help to lower your premium at renewal since the concession starts at 20% of the own-damage premium.
Adjust deductibles: Deductibles are mandatory payment at the time of claim. There are two types, the standard deductible which is compulsory in nature and the voluntary deductible. While you can’t do much about the standard deductible since the regulator prescribes it, the voluntary deductible can be used to decrease the premium by opting to pay at the time of insurance claim.
Picking the right add-ons: Additional features can be opted under your policy where you can increase the scope of your plan. But these add-ons need to be selected only if they will benefit you. Purchasing unnecessary add-ons will only increase your premium and offer no advantage. Thus, removing unnecessary add-ons can help to lower the premium. A car insurance calculator can be handy to decide the right add-ons and keep your budget in consideration.
These nifty tips will help you qualify for a concession. Finally, the aim is to lower your premium and not lose on insurance cover at the same time.