While third-party car insurance is mandatory, it is also important to have comprehensive insurance so that your car is protected against any accidental damage. Usually, motor insurance premiums need to be renewed every year. Here are some ways you can reduce your motor insurance premiums.
Compare Rates Online
You can go online and do comparison shopping when it comes to your motor insurance premiums. It is possible to find the best deals online. If you find a better rate with similar features you can always port your motor insurance policy. Remember, that your no-claim bonus can also be ported to a new insurer if you have made no claims during the policy year.
Choose A Voluntary Deductible
Like a health insurance policy, you can also opt for a deductible in your motor insurance policy. Let us say that the policy has a deductible of Rs 5,000. In that case if your claim is of Rs 20,000, you will pay Rs 5,000 from your own pocket and the insurance company will pay Rs 15,000. Having a higher deductible will reduce your car insurance premiums.
Pay-As-You-Drive Car Insurance
If you drive your car less or have a second car that you do not drive that much, you can go for pay-as-you-drive car insurance. Here the premium is charged based on the total number of kilometers you drive the car. If you drive less, you pay less premium. You can always top up the number of Kilometers if you are driving more than the limit.
Avoid Add-Ons You Do Not Need
Car insurance can come with many add-ons. Some of these may be zero depreciation, engine protect, tyre protect and so on. The insurance premium goes up with more add-ons you opt for. It is important to choose only the add-ons you need. For example, for an older car. Where tyres need to be replaced, the tyre protection cover is not required.
Avoid Small Claims
When the amount is small it is best not to make an insurance claim. In case you make such claims, you cannot avail of the no-claim bonus the following year. This would mean that you lose out on the 20 per cent or more discounts on premiums you would get for the car insurance the following year.
