5 Tips to Manage Car Insurance Premium

To make sure that you are not spending too much on your car's insurance, read the fine print of your insurance policy. You can use some of these smart mantras to make the most from insurance premium renewals.

• NCB (No Claim Bonus) - Keep a Clean Record

  What better incentive can you, as an owner, deserve for driving your car without meeting with an accident? NCB is awarded to the owner of the vehicle for 'No Claims' in the preceding policy years.

  The value of the discount depends upon the insurance claims you have made in that particular year.

• Avoid Policy Lapses

  Renew your policy in a timely manner. Insurance companies usually levy a fine on insurance renewals made after the due date, and it might reflect on your premium amount. In case the delay is beyond the grace period, you may lose out on the NCB as well.

  Policy lapse involves the risk of driving your car illegally on the road that can result in hefty fines. In case of an accident, you might have to pay for the damages out of your own pocket. These incidents can also lead to higher policy premiums once you reinstate your car's insurance.

• Pick Your Riders Diligently

  Insurance companies offer a number of add-ons or riders that cover the minutest of the problems that you, as a car owner, could suffer. These range from arranging for duplicate keys, and fuel delivery to spare parts replacement and engine protector cover. Such add-ons, normally are not covered under the policy but can be bought at an additional price. Avoid selecting blindly; choose and pay only the add-ons that you really need.

• Best of the Features, Best of the Deals

  If your car has the best of security features like anti-theft tools, engine cut-off systems etc., you are in a great position to negotiate a competitive price for the premiums.

• Voluntary Deductibles

  Avoid claiming for minor damages like scratches, small dents, etc. as availing attractive discounts on the premium is a more prudent choice than opting for small claims.

  Finally, your driving history is considered to be one of the top factors that any insurance company looks at; it can have a huge impact on your insurance premiums. Typically, insurance companies look for records of violations during the last five years. Hence, drive smart and pay less!

• Drive Safely

  Voluntary deductible is an amount that you, as a car owner, can pay in the event of a claim. While compulsory deductible is as per the policy terms, voluntary deductible can be fixed during policy renewals. The higher the deductible amount, the lesser would be the premium and vice versa.