The premium refers to the amount that the policyholder pays to the insurer at the time of purchasing a car insurance policy. Recently, due to the hike in the price of new car models, car insurance premiums are on the rise. The Insurance Regulatory and Development Authority of India increased the premium of third party car insurance policy by 40% in 2017. Considering the new development, here are ways to reduce third party car insurance premiums -
- Do not raise a claim for minor damages
Avoid raising claims for minor damages that are easily repairable. If the repair amount is a small one, pay the bills out of your own pocket. This will help you preserve your NCB. If you make a claim for little damages, then you will no longer be entitled to avail of NCB benefits in the form of a discount on your policy premium.
- Raise the voluntary deductible
Car insurance premium tends to decrease when you choose a higher voluntary deductible value. Choosing a higher deductible requires you to pay a higher amount towards the claim. Since your insurer will cover only the lesser portion of the claim amount, the premium of your car insurance policy will be low.
- Increase your car’s security
You can increase your car’s safety by installing a security device, such as an anti-theft device. This will lower your car insurance premium. Moreover, if the security devices are approved by the Automobile Research Association of India, then you will receive discounts on the insurance premium.
- Avoid the lapse of your car insurance policy
Make sure that you renew your car insurance policy before the expiry of the policy tenure. If you fail to renew the policy before the due date, it will lapse. Once your car insurance policy lapses, you will lose all the coverage and the benefits, including your NCBs that come along. You will then need to buy a new policy, which may not be as affordable as your previous policy.
Besides, you should also compare car insurance premium rates across different websites. In a bid to reduce your policy premium, do not risk the safety of your vehicle. For instance, opting for additional covers can prove beneficial even if that means paying a little extra money.