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6 tips to reduce premiums for car insurance renewal
1. Use of the No Claim Bonus
Many car insurance providers offer their customers a No Claim Bonus (NCB) if they do not claim any damage during the contract period. Car owners can take advantage of this while renewing their plans to receive up to 50% off rewards. Therefore, it would be wise to only make a claim if the damage is significant.
Damage such as minor scratches, minor dents, broken headlights, etc., where the vehicle owner can pay the cost out of pocket, must be avoided making an insurance claim for it. However, it is mandatory to renew the plan before its expiration date to take advantage of this benefit.
2. Consideration of deductibles
In the event of vehicle damage, the policyholder must pay a certain percentage of the damage amount out of their own pocket. This percentage is called the deductible, which is a voluntary deductible and a mandatory deductible. If the voluntary deductible is increased, the premiums drop significantly.
For example, if the damage requires coverage of Rs. 20,000 and the deductible is Rs. 2,000, the claim amount becomes Rs. 18,000. Accordingly, policyholders must pay the premium for this coverage. However if the deductible is Rs. 5,000, the claim amount becomes Rs. 15,000. Accordingly, the premium of this policy will be further reduced.
This example makes it clear that private individuals have to pay lower premiums if they consider increasing their voluntary deductible.
3. Installing Anti-Theft Devices (ATDs)
ATDs act as anti-theft devices, helping to track quadricycles if lost or stolen. Without these devices, the vehicle is exposed to an increased risk of burglary. Therefore, these vehicles will be charged a higher premium for their policies.
On the other hand, the installation of ATD shows the desire of car owners for maximum burglary protection. This lowers the risk profile of your car, which directly translates into a reduction in car insurance premiums. However, to be eligible for such concessions, the Automotive Research Association of India must approve the installation of the ATD.
4. Ensuring Timely Renewals
Renewing car insurance after the policy has expired will result in the loss of insurance benefits. Also, some insurers may require car owners to submit a comprehensive car inspection report to renew the policy after it terminates. Therefore, he can subsequently increase the premium for the four-wheeler insurance. Also, insurers only reward policyholders with a No Claim Bonus (NCB) if policies are renewed before expiration. NCB leads to a significant reduction in premiums.
The policy renewal requires only a few documents and can be carried out with just a few clicks. Therefore, individuals who are looking forward to reduced renewal premiums and want to continue enjoying the policy benefits should renew their plan in a timely manner.
5. Choosing cheap coverage
There are many car insurance policies available in the market. Therefore, choosing the right one is crucial for adequate coverage. Individuals can opt for comprehensive coverage that includes both comprehensive and motor vehicle liability insurance.
In addition, they have the option of including various supplemental coverages with a comprehensive plan to increase the scope of coverage. Add-ons such as zero depreciation coverage, engine protection coverage, roadside assistance, etc. are very popular and can come in handy in emergencies.
6. Online Policy Comparison
Comparing insurance policies online gives four-wheeler owners a clear idea of which tariff is the cheapest. You can also compare the inclusions and exclusions to determine their usefulness.
This helps them find the cheapest premiums that offer all the essential benefits. However, individuals should remember to take out their plan with a credible insurance provider to reduce the likelihood of fraud.
These tips can help policyholders reduce premiums when they renew their car insurance. As a result, policyholders can renew their policies in good time without having to worry about financial burdens. Interested parties can visit the Bajaj Finance Limited portal to view and compare four wheeler insurance policies before making a suitable decision.
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