Comprehensive motor vehicle insurance protects you financially against damage to your vehicle. It saves you from pulling a hefty sum out of your pocket on repair or replacement costs. In addition, there is no financial hassle in the event of liability to third parties. While getting car insurance is important, it doesn’t necessarily have to burn a hole in your pocket.
Here are some ways you can reduce your auto/bike insurance premiums.
Install a security device in your vehicle
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First, install anti-theft devices on your vehicle. Devices such as steering wheel locks, GPS tracking and car or bike alarms increase vehicle security and reduce the risk of theft. This initiative reduces the likely risks from the insurer’s perspective. Therefore, they help you to reduce the insurance premium.
Avoid unnecessary modifications to the vehicle
Changing or adding new unnecessary features/devices to your vehicle can significantly increase your premium. Modifications can be external, internal or to increase performance. Modifications include changes to the engine, air filter or exhaust system to improve vehicle performance or modify the car’s exterior by painting, adding graphics and lights. These changes increase the value of the vehicle and extend the scope of coverage, thereby affecting the premium.
If you do not disclose these modifications made to the vehicle when purchasing the insurance policy, the insurer will not assume these additional functions.
Renew car insurance in good time
Make sure you renew your car insurance before it expires. Otherwise, you may lose some of the carry-on benefits offered by the insurer, such as the No Claim Bonus (NCB). Also, you may have to pay a late renewal penalty.
You can set a reminder for yourself before the policy expires and easily renew your car insurance online.
Use the No Claim Bonus (NCB)
You earn NCB for Claiming Years. Therefore, you should avoid small claims to get the benefits of NCB. You can accumulate up to 50% NCB in five consecutive Claiming Years. It starts at 10% for the first year and is added every year. Insurance companies offer NCB as a premium discount. So if you decide to increase policy coverage, which adds up to a huge premium, you can use the NCB.
Compare and purchase car insurance online
Bajaj Finance Insurance Mall offers a range of auto and motorcycle insurance plans from leading insurers. It’s a 100% digital platform that allows you to buy auto insurance policies of your choice with no paperwork.
It also offers the flexibility to compare different car insurance policies online when purchasing or renewing policies that suit your needs. As I said, every cent saved is a cent earned. These tips can help you save your hard-earned money and get car insurance benefits.
Disclaimer – *Terms and Conditions apply. Bajaj Finance Ltd (BFL) is a registered corporate agent for third party insurance products under IRDAI Composite CA registration number CA0101. Please note that BFL does not assume the risk or act as an insurer. Your purchase of an insurance product is purely voluntary, after you have conducted independent due diligence as to the suitability and feasibility of an insurance product. Any decision to purchase an insurance product is made entirely at your own risk and responsibility and BFL will not be liable for any loss or damage suffered directly or indirectly by any person. You can find the policy texts on the insurer’s website. For more details on risk factors, terms and conditions and exclusions, please read the product sales brochure carefully before completing any sale.
This article is created and published by the FPJ focus team. You can contact them at [email protected]
Published on: Tuesday March 14, 2023 2:53 PM IST
