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Insurance Article

How to Save Money While Renewing Car Insurance

May 24 2017
Save money while renewing your car insurance

Read on to learn how you can save money while renewing your car insurance

Car insurance is mandatory in India as per the Motor Vehicles Act. With the increase in car sales, many insurers are offering lucrative insurance covers, spoiling the customer for choice. Insurance cover for one year is mandatory when a new car is purchased. Post one year, it is the car owner’s responsibility to renew the insurance cover.

Most car owners prefer to continue with their original insurer and don’t bother to take a second look at the other, more beneficial and cheaper options, available in the marketplace. Sparing a few minutes before renewing your car insurance can yield great savings in the long term. Here are a few aspects that you must look into before renewing your car insurance.

Car Insurance Policy Comparison

Most people might be tempted to just go with their current insurance policy, as that seems to be the most convenient and hassle-free way to get things done quickly. But there is also the possibility that the insurer has made revisions to the terms and premium calculations.

It is always better to browse through the premium charged by other providers. This is not a time-consuming process as there are hundreds of websites available that let users compare different car insurance policies online. A little research from your end can save you valuable money over the period of coverage.

Value of Your Vehicle

A little calculation of the current value of your car, taking into account the depreciation factor, can save you a lot of money on your premiums. Once the depreciated value of the car is known, it only takes little negotiation with your insurance agent to gain big on premiums.

No Claim Bonus

No claim bonuses (NCBs) are awarded to policy holders who do not make a claim in the preceding year. Claiming this bonus before renewing your policy can result in lower premiums for the next year. It doesn’t matter whether your insurer is the same or different as NCBs are transferable from insurer to insurer. Over the years NCB can lower the premium amount by as much as 50%.

Understand the Features

It is highly recommended to go through the features of the car insurance policy you’re renewing. In doing this you might come across features which were offered last year but are no longer present this year. You may also see features that you don’t need this year and there might be some you want to add this year. Going through such details help you in getting only those benefits you want, at a price which does justice to your wallet too.

Avoid Policy Expiration

Renewing your policy beforehand is always beneficial. Experts have recommended renewing the policy at least 45 days before it expires. This ensures that you enjoy the benefits of coverage without a break and also saves you from hike in prices that may occur later on.

Related Article:

Compulsory vs. Voluntary Deductible in Car Insurance
Anti-theft Devices and Their Impact on Car Insurance

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