A car insurance policy is essential to follow the law and protect yourself financially in case of accidents or theft. However, the premiums can pinch your pocket, especially with a limited budget.
The good news is that you can avail of several car insurance discounts to reduce your premium burden. While some depend on your driving record, some require you to make certain choices.
This blog shares eight beneficial car insurance discounts that you should certainly opt for to spend less on your policy. Whether renewing your existing policy or buying a new one, make sure you make the most of these. Read on to know what these are.
No Claim Bonus
The no-claim bonus (NCB) is the first discount you should look for when renewing your insurance. It can save you a lot of money on premiums. If you don’t make any claims for a year, your NCB can go up by 20% to 50% on your renewal.
It is essential to renew your insurance on time so you don’t lose out on the savings you’ve built up. And even if you switch to a different insurance company, you can usually take your NCB with you as long as you can prove it.
Voluntary deductible
The mandatory deductible is the least amount you must pay out of your pocket when you make a claim. When you buy the policy, paying a higher voluntary deductible can reduce your insurance premiums. Just be sure you can afford the additional amount if you ever need to make a claim.
Own damage discount
If you’re a safe driver and have yet to make many insurance claims, some insurance companies might discount you when you renew your policy. They think you’re less likely to have accidents and file claims, so they give you the savings. Remember to check with your insurance company to see if you qualify for the discount.
Timely renewals
Remember to renew your car insurance on time yearly, without any gaps. If you let your insurance lapse or renew it late, you could lose your No Claim Bonus and pay much higher premiums. Renewing on time helps you keep the rates lower and provide continuous coverage without extra costs. Plus, many insurance companies offer discounts and rewards for long-time customers.
Choose the right plan
When looking for car insurance, compare different types of plans from different companies to find the best one for your needs. You’ll want to consider the extent of coverage (like whether it includes damage to your car or just damage to others), how long the policy lasts, and whether it’s bundled with other types of insurance. You can save money by choosing a plan with lower deductibles and skipping any extra coverage you don’t need. By picking a plan tailored to your needs, you can reduce how much you spend on car insurance.
How to avail these discounts?
Here are some smart tips to avail of these discounts:
- Maintain a clean claim history to earn higher NCB savings every year
- Add multiple cars to one policy or renew together on the same date
- Get only ARAI-certified anti-theft devices installed
- Opt for the maximum voluntary deductible you can afford
- Compare premiums online on insurer websites before buying
- Ask about one-time payment discounts at renewal
By following these tips and leveraging all possible discounts, you can reduce your car insurance premium by 25% to 50% annually.
Conclusion
Car insurance companies offer many ways to help you save money on your policy. You can keep your premiums low by carefully considering your needs, choosing the right deductible, and avoiding extra stuff you don’t need. It’s also important to renew your policy on time and take advantage of any no-claim bonus offers. All of this can help you keep your car insurance affordable.
When getting the best car insurance for your vehicle’s safety, consider contacting a trusted insurer whose team can create a personalised insurance plan that matches your unique needs and even find discounts you might be eligible for.
