Tips to reduce your Car Insurance renewal cost

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Car insurance (Image: Pixabay)
Car insurance (Image: Pixabay)

New Delhi : Owning a four-wheeler is more than a fancy purchase. It comes with a huge responsibility. You need to follow specific rules while using it. One such mandatory obligation is to have Car Insurance. It offers protection during unforeseen circumstances. It is not advisable but also a requirement to ply on Indian roads. 

It usually comes with a one-year validity, after which it needs to get renewed annually. This process involves a renewed premium and applicable inspection. This gets determined based on your four-wheeler's condition. Therefore, it ends up increasing the renewal cost, which is a significant concern. However, there are some practical ways to help reduce this burden to a great extent. 

Prompt renewal: This is the simplest way to avoid additional costs. Insurers most likely raise the premium closer to the renewal date. It leads to a sudden premium hike, which you cannot avoid. Hence, early Car Insurance renewal is an excellent method to prevent such inflation. Besides, doing this does not affect your existing plan. Even if you renew earlier, your new policy comes into effect after the expiry of the current one. So, feel free to do it well before the due date. 

Also, waiting for the due date often leads to expiry. This causes you to lose out on the accumulated No Claim Bonus and other benefits. Additionally, extreme delay leads to buying the insurance plan from scratch. 

Compare insurers: If you want to decrease the insurance costs substantially, comparing is the best strategy. Even if you are content with your existing policy provider, there is no harm in looking. This way, you may find better offers and coverage. Once you do, switching during online Car Insurance renewal is easy. Moreover, most policy providers have detailed information on their sites, which makes comparison simple. 

Use NCB: Every claim-free year shows the insurer that you are a risk-free driver. Therefore, you get rewarded with a bonus of up to 10% annually. It is subject to increase up to 50% for five consecutive claimless years. This is independent of your vehicle, which means you are allowed to transfer it. So, make sure to use it to get a discount on your renewed premium. 

Choose features wisely: You get a lot of facilities with a comprehensive Auto Insurance plan. These provide added protection to your vehicle. But they also increase the overall insurance cost. Hence, renewal is a great time to re-evaluate your needs and choose only the necessary features. Check if the existing add-ons have helped you in the past year or what value the new ones bring. This lets you save up on renewal costs. 

Avoid minor claims: A four-wheeler is expected to suffer several damages throughout its lifetime. However, not all need Four Wheeler Insurance aid. Some minor issues like a dent, busted headlight, cracked windshield, etc., are manageable expenses. Raising a claim on them makes you lose out on the NCB. This affects the discount you get during Car Insurance renewal online. Hence, it is crucial to prioritise the claims based on the severity and saving costs. 

Renew online: When you opt for the offline method, you deal with the middle people. This results in higher premiums as it includes the agent's commission along with other costs. It is easily avoidable with Car Insurance online renewal. Here, you directly fulfil the process eliminating the need for assistance.