5 secrets that can help you reduce the car insurance premium amounts

5 May 2019

Buying car insurance is not only crucial, but also necessary if you want to drive your vehicle on Indian roads. But for most people, this is an investment that is deemed less important as opposed to say, health or life insurance. In fact, most people see buying or renewing insurance policies as an unnecessary expense, especially if theyve never filed a claim. It also doesnt help that premiums for insurance can increase based on certain factors. However, if you play your cards right, the payable premium amounts can reduce by up-to 50%. Lets look at some secret ways to lower car insurance.

How to reduce car insurance premium?

The below mentioned tips can help you reduce your payable insurance premiums considerably.

Don't file unnecessary claims:

The easiest way to reduce your insurance premium is to restrict filing claims as much as you can. Insurance providers reward customers for not filing claim every year. The first year, in which you dont file a claim, you become eligible for a 10-20% discount on the insurance premiums. This discount increases gradually, until it reaches as high as 50%. This reward is known as a no-claims bonus, which you can accumulate and use to reduce the payable premium.

Don't file claims for minor damages:

As cars grow older, they become accustomed to wear and tear. So, how to get lower car insurance premiums in such a case? Well, the answer is simple. Paying for minor damages like scratches or dents or puncture repair work from your own pockets works out cheaper in the long run. This way, you save money twice i.e. you insurance premium does not increase upon renewal and you can utilize the accumulated no-claims bonus for discounts. If you make it a habit to file claims for small damages, your premium amounts can increase.

Install a security system in your car:

There are many perks of installing a security system in your car. Firstly, you are alerted any time your car is being mishandled by someone. Secondly, the loud siren can scare away potential thieves and reduce the chances of your car being stolen. Thirdly, insurance providers appreciate your initiative of installing an anti-theft device, and since it reduces their risk of paying for car theft, you are quoted a lower insurance premium amount.

Try to avoid unnecessary frills:

One of the best ways to lower car insurance premiums is to avoid adding any unnecessary frills such as alloy wheels, ultrasonic sensors, and automotive night vision and so on. All these embellishments can increase the payable insurance premium, since the cost of your vehicle increases, especially in case of a theft when the insurance provider has to pay a high compensation amount.

Join AAI or WIAA:

Car owners who are members of road safety associations such as Automobile Association of India or AAI and/or Western Indian Automobile Association (WIAA) are made privy to several benefits. One of the best benefits extended to such individuals is discount on insurance premiums, over and above the maximum no-claims bonus discount. AAI and WIAA members are typically deemed as safe drivers, which affords them this consideration.

Now that you know how to lower your car insurance premiums, you can save a lot of money and stop worrying about paying high premium amounts. Other ways to reduce insurance premiums is to follow all traffic rules diligently, renew your insurance policy on a timely basis and increase voluntary deductibles. All these points can truly increase your savings while keeping you and your vehicle insured.