Motor insurance is compulsory. According to the Motor Vehicles Act, 1988, if you want to drive on Indian roads then your vehicle must have a valid third party cover. So if you are the owner of a car or a toweled, then you cannot refuse his insurance policy. But you can certainly do that you can reduce the premium requirement on your motor insurance policy, provided you know how to do it. If you are aware and careful while buying a policy, there are several ways to reduce the motor insurance premium.
There is not enough emphasis on comparing the motor insurance plan. There are dozens of motor insurance policies for your vehicle. When you compare them, you will be able to choose the best policy for yourself, which will not only give you the most widespread benefits, but also at the lowest cost. The online market place has made comparisons easier because the insurance aggregator shows all the available policies in one place where you can buy or renew auto insurance by looking at different policies. By scrolling down on your computer / mobile screen, looking at insurers, their plans, coverage benefits and premium rates, you can choose the policy for yourself with the lowest premium and maximum coverage.
Make security a priority
You must have heard that you should drive safely to avoid the accident but do you know that by keeping your vehicle safe you can also get a discount on the premium? Yes, if you install a safety gadget (like ABS, anti-theft device, etc.) on your vehicle, you will get a discount on premium in motor insurance policies. Through these devices, you can get a discount of 5 to 10 per cent. Therefore, make your vehicle safe not only to avoid accidents but also to keep motor insurance premium safe.
No Claim Bonus
Motor insurance policy remains in effect for one year and then it is renewed. However, even in the long-term policy, you pay instant premium but the coverage is taken on a per-year basis. If you do not make a claim in the policy year, then you earn ‘no claim’ bonus. This bonus starts from 20 per cent, after five straight-free years, it reaches 50 per cent. When the policy is renewed, due to the bonuses, the premium is exempted. So if you are renewing your motor insurance policy, you are entitled to a discount on premium, using the current no claim bonus, which can be up to 20% to 50%. If you liked the above No Claim Bonus, you should use it and keep it. The discounts received by the bonus will only end as soon as you claim. So do not claim for a small amount. You can arrange a small amount of money with your pocket and save the no claim bonus. In this way you can get huge discounts on the premium of Motor Insurance Renewal using the bonus.
Choose the coverage you need
Motor insurance policy gives you the convenience that you can get an add-on by paying additional premium. The add-on is a great way to increase coverage, so carefully select them. For example, the zero depreciation add-on for new vehicles is compulsory because it enhances the claim or claim payable, but if your vehicle is outdated then the add-on cover is of no use. Similarly, if you live in an area where there is a risk of flood then it is advisable to take ‘Engine Protect’ add-on. But if there is no flood in your area or water in monsoon, then this type of add-on will increase your premium amount in vain. Therefore, take care when choosing the coverage of your motor insurance policy and pay only for as much as you need.