Tips To Reduce Your Car Insurance Premium

author image Monday 20 July 2015, 17:30 PM Car-Finance

You can easily reduce the amount you pay as car insurance premium in India by applying below given smart tips.

Reduce your car insurance premium
Reduce your car insurance premium
  • Increasing Deductible Amount: Vehicle insurance premium can be reduced easily by increasing the deductible amount. Deductible amount is the expense that you pay from your own pocket while making a claim. However, you don’t need to go overboard and keep this amount in your affordable limits. Because if you pay a hefty amount the very purpose of insurance fails. General insurances are renewable on a yearly basis, so you may begin with a comparatively lower amount and move ahead with it as per your affordability.

  •  Transferring No-Claim Bonus To New Car: While choosing insurance it is important to understand that vehicle insurance is closely linked to the buyer and not the vehicle. Many times agents don’t bother to tell their subjects about it. An additional advantage of not claiming insurance is – it leads to accumulation of bonus that can then be transferred to your new car as and when you want. Make sure to retain the insurance policy on your name while buying the vehicle. When policy ends, you can acquire the no-claim certificate from the company, reserve the earned bonus and use it whenever you buy a new car in India. It is valid to transfer the bonus to new car within a period of three year after your policy ends.

  • Try Not To Claim Small Damages: A subject becomes entitled to NBC (No-Claim Bonus) with completion of each claimfree year. It is true that the basic purpose of insurance is provide financial support whenever a vehicle is damaged, but if you can afford to skip claims for smaller issues, it can help a lot in longer run to save a lot on your premium amount. It can easily help in bringing down your insurance premium amount by 50 per cent.

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