Important Tips to Reduce Car Insurance Premiums

Top 9 Important Tips to Reduce Car Insurance Premium

1. Compare quotes

Insurance companies provide varying rates based on the coverages. You can compare prices and select the best that meets your needs. Many online tools and websites allow you to quickly and easily compare quotes from multiple providers. 

 

2. Increase Deductibles

The deductible is the amount you pay out-of-pocket if you file a claim before your insurance comes in. By increasing the deductible, you agree to pay more in the event of a claim, which reduces the monthly or annual premium. We can use the deductible amount to pay in an emergency.

 

3. Maintain a Good Driving record

 The most significant factor that insurers consider when determining your premium is your driving record. Avoiding traffic regulations and accidents shows that you are a responsible driver, which leads to lower your premium costs.

 

4. Install safety devices

Installing anti-theft devices such as alarms, tracking systems, reduces the risk of your being stolen and can decrease the likelihood of accidents. Insurers provide discounts for cars with these features. 

 

5. Opt only necessary Add-ons

Car Insurance add-ons are like additional shield for your car, which provides extra protection at an added cost.  It is important to assess your requirement and needs before deciding on your add-ons. Select your add-ons carefully which can reduce your insurance premium.

 

6. Keep your policy updated on time

 Do not forget to renew your policy on time. Due to late payment, your insurance premium might increase if you renew your lapsed policy. Also, a delay in renewal can result in losing your accumulated No Claim Bonus (NCB), which won’t be applied to your next year’s premium. 

 

7. Avoid Minor claims

 If your car gets a minor damage such as dent or scratches due to a small accident, fixing these issues wouldn’t cost much. So, when you avoid claiming for such minor damages, you won’t lose your NCB No claim bonus, when you renew your policy.

 

Conclusion

Reducing your car insurance premium involves a combination of smart decisions, proactive steps and understanding the factors that influence car premium rates. By utilising the above strategies, you can drive confidently, knowing your vehicle, and finances are safe guarded against unexpected situations on the road without compromising coverage. 

With Shriram Car Insurance, you can benefit from features like cashless claim settlement, roadside assistance, and a wide network of garages, ensuring prompt assistance and support wherever you go. Moreover, their customisable insurance plans cater to various needs and budgets, allowing you to tailor coverage according to your specific requirements.

 

FAQs

1. What are the factors that affect insurance premiums?

The factors that affect the insurance premium include driving record, age, location, coverage limits and deductibles.

 

2. Is it worth increasing the deductibles to lower the premium?

Increasing the deductible can lower your car insurance premium, but ensure you can afford higher out-of-pocket costs at the time of claim. 

 

3. Can installing safety features in your car reduce the car insurance premium?

Yes, installing anti-theft devices can lead to a discount on your car insurance premium.