May 30, 2024

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Tips to reduce your car insurance renewal cost

15 Tips and Ideas for Cutting Car Insurance Costs

Fear of driving comes naturally with the thought of how many things can go wrong on the road. This is especially true in the case of Indian roads. With issues like potholes, rash driving, this fear is well justified. For this reason, car insurance is very important. It ensures that their vehicle is secured in the event of an accident. However, before buying it you should pay attention to the responsibilities it brings with it. 

A car insurance policy is a must-have for all drivers. There are two types of policies, which are comprehensive and third-party covers. The third-party policy offers the basic coverage carfor liabilities that arise out of a car accident. A comprehensive policy is an upgraded and complete car protection that be helpful in numerous ways. It provides comprehensive coverage that’s designed to address unforeseen expenses. For that reason, it can more expensive than the third-party policy. You Can renew your car insurance on ICICI Lombard’s car insurance app easily.

In addition to the initial purchase, the cost of car insurance can also increase with time. This means renewals can get more expensive. This article aims to give you some tips that can help you lower the renewal price of your vehicle.

  • Buy a multi-year car insurance policy. 

One of the best ways to make sure that you don’t have to pay an expensive renewal premium each year is to not pay it each year. You can buy a car insurance policy with a longer term. This type of policy is known as a multi-year car insurance policy. It essentially means that you buy coverage for a longer term. As you are paying for a longer term at once, you pay at a lower rate and then enjoy coverage for a longer time. A long-term policy can help lower your insurance renewal price. One thing to keep in mind is that you should ensure that your vehicle is used for the duration of the policy.

  • Use no-claim benefits 

No-claim benefits are available when you buy a comprehensive car insurance policy online. There are essentially an extra benefit that the insurance provider offers you for not making a claim over a long period of time. This benefit is linked to the price you pay to renew the policy. The logic here is simple. If you drive safe, you don’t get into an accident. This, in turn, means that you won’t have to make a claim for accidental damages. For this, the insurance provider will give you a discount on your premium. hence, the next time you will have to pay a lower premium. With no-claim benefits, you can get around a 50% discount on your premium. 

Set the right IDV

IDV or the insured declared value of the vehicle is often misunderstood by new car buyers. This term is completely different from the resale value of the vehicle. Since IDV is the portion of your insurance that impacts the premium, it’s important to set it correctly. Your vehicle’s age and condition can also affect the IDV value. The higher IDV you go for, the higher your premium you would have to pay. Hence, you have to select the right IDV for your car.  

Select the right add-ons 

An add-on is a feature that can be added to your insurance policy to enhance its coverage. However, add-ons are paid benefits that you have to purchase with comprehensive policies. While they can help in getting you coverage for specific situations, they also raise the premium you have to pay. When choosing a car insurance add-on, it is important to evaluate its various benefits relative to its cost. If the add-on is not extremely necessary, remove it from your policy at the time of renewal. 

Opt for a higher deductible

Compulsory deductible is a requirement of motor insurance policies. It is calculated by dividing the annual premium by the number of claims that are made. This amount is nominal. However, you can also choose for a voluntary deductible. Aside from the standard deductible, the voluntary deductible is an amount that you agree to pay willingly at the time of claim. It helps lowers your premium and thus, makes renewals cheaper.