Top 5Ways to Reduce Car Insurance Renewal Cost

by kumar rahul Best Insurance Deals

Renewing policy before it expires

This is the simplest and most fundamental of all. If you fail to renew your policy before it expires, you will have to purchase a new one. This means you'll have to have the car tested as well as forego the NCB (No claim bonus).

And if you don't have an NCB, you won't get a discount on your insurance. Both of these factors are sufficient to justify a significant premium increase.

Avoid making claims for small expenses

If we do not make a claim for 2 years in a row, we are entitled to a maximum of 50% of the NCB. NCB helps you to get a discount on your premium, saving you money.

For example: In the parking lot, your car is scratched and has a slight dent. When compared to the NCB accumulated, the cost of fixing the dent is less. Will you still be willing to give up the discount by claiming a small amount?

If you make a claim, you will have to pay a large sum for the premium the next year when renewing, as you would have forfeited the accrued bonus.

So, before claiming for a small sum that can be quickly shelled out of your pockets, think twice.

Buying and comparing premiums online

We buy everything online, from groceries to home decor to costly electrical appliances. We browse and compare prices on various websites to find the best rates, so why do we overlook purchasing insurance policies online?

The benefit of purchasing an insurance policy is that you may compare rates from various insurers and choose one based on ratings, reputation, premiums, claim settlement ratios, and other factors.

The best part about purchasing insurance online is that you can get it all at a significant discount. I hope these arguments are sufficient to persuade you to purchase an insurance policy online.

Transferring your No claim bonus (NCB)

Many people are unaware that an NCB is tied to the policyholder, not the vehicle. That is, the NCB that accumulates for claim-free years is for the policyholder's advantage. Yeah, it can be transferred if you purchase a new car after selling the old one.

Always remember to get an NCB certificate from your insurance provider on your vehicle, as this will help you get a discount on a new car policy. Also, even though you are not planning on purchasing a new car right away, you can move the NCB because the NCB retention certificate is only valid for 3 years.

Mentioning correct IDV (Insured Declared Value) and other details

The IDV is the value declared by the insurance provider for your vehicle, and it will depreciate by 10% for each renewal. The IDV, on the other hand, is the sum that the company can pay in the event that your vehicle is stolen or completely damaged.

However, most of us want a high IDV and don't think about depreciating it every year, which has an effect on your car insurance premium. Please remember to include the correct IDV of your vehicle, as this will aid in the optimization of your premium.

Right information is also essential for lowering premiums. Details such as your car's year of manufacture, RTO zone, and any prior claims you've made have a significant effect on your vehicle insurance premium.

With these helpful tips, I'm confident that renewing your car insurance policy would be a breeze. You'll still be covered by insurance at all times. As a result, think wisely and behave wisely!