How To Save Money at the time of Car Insurance Policy Renewal?

car insurance policy renewal

Your Car insurance is about to end. Time has come for car insurance policy renewal. When you approach your insurer he offers you renewal with same premium. The amount is very high. You don’t want to pay it.You are thinking of saving money while renewing car insurance plan. But you have no idea of how to do it. In this article you learn about how to save money at the time of Car Insurance policy renewal.

Tips To Save Money while Car Insurance Policy Renewal

1. Compare various Car Insurance plan online

For policy renewal, there is online platform available provided by various Insurance providers in India. Just go to the respective websites, check out various insurance plans and see which suits you best as well as cheaper in cost. Now compare various plans of various insurance providers and then shortlist the plan that you like the most. An ideal car insurance plan is one which offers you adequate benefits at reasonable price. So, before going for any renewal or purchase of car insurance, follow this step.

2. Estimate correct Insured Declared Value

Insured Declared Value (IDV) is the maximum sum assured of your motor insurance policy. It is computed by subtracting depreciation from market value of the vehicle. IDV is given when the car is damaged to that extent that it is beyond repair or stolen. There is a direct relationship between IDV and premium. if Insured declared value is higher, premium is also high.

3. Become member of various Automobile association in India

If you are registered with various automobile association such as Automobiles Association of India or Western India Automobile Association, your insurer offers discount on premium. In simple and short words, if you are member of AAI or WAAI, insurer will give you discount.

4. Use No Claim Bonus (NCB)

At the time of Car Insurance policy renewal, the insurer offers discount in the form of No Claim Bonus when the policy holder does not file claim for his or her car. NCB is 50 percent for not filing claim at the time of every renewal. If you want to enjoy the discount at the time of car insurance renewal, then this is the best option.

5. Choose a higher limit of Voluntary Deductible

Each and every motor insurance plan offers an option of selecting a voluntary deductible limit. This set a limit to the claim amount that the policy holder has to bear himself or herself. So in case of any accident or theft, when policy holder files a claim, he has to pay a certain amount in the form of voluntary deductible. The insurer pays the remaining amount. It also offers discount on premium.

6. Renew Insurance plan on Time

It is very important to renew the motor insurance plan timely. If the policy holder does not renew the plan on time, the NCB benefit is not provided. So, it is important that the policy holder renews the plan within 90 days of its expiry.

7. Anti – Theft Device Installation

If you have installed any anti – theft device on your vehicle, then it enhances the safety. In such case, the insurer provides discount on premiums.

Also Read >>> 5 Car Insurance Claims Queries that Requires your honest answer

If you think that, you have bought motor insurance policy for yourself and that’s the end of your task, then this is completely wrong. Renewal of policy is also very important. Follow the above tips and get Car insurance policy renewal at reasonable prices. Save your money and invest it in best way.

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