8 Tips to reduce car insurance premium by 50%

8 Tips to reduce car insurance premium by 50%

If you want to reduce your car insurance premium by 50%, then definitely read till the end. We need to know about the factors that determine car insurance premiums.

If you think that car insurance premium depends on the brand of the car, then it is true. But if you are thinking that it depends only on the brand and model of the car, then you are wrong.

8 Tips to reduce car insurance premium by 50%

If Two cars are of the same brand, same model, and bought together, the cost of the insurance premium of both may be less.

So let’s know about those factors that decide car insurance, and you can reduce your car insurance by 20% to 50% by controlling them.

1. What is the age of your car?

The IDV (Insured declared value) depends on market value. The lower the IDV of the car, the lower its premium comes.

  • It means the older the car, the lesser its market value. It simply means that the older the car, the lower its car insurance premium.
  • Your insurance premium is reduced because the value of your car has come down every year.If you are paying the same premium for your car every year, then you are making a mistake. You ask the insurance company to reduce your car insurance premium every year.

2- Age affects the car insurance premium

For those who have more experience in driving a car and are over the age of 30, their insurance premium is lower than those who have less experience and age.

For those who have more experience in driving a car, and have fewer accidents, the premium gets lower due to experience.

Similarly, people over the age of 30 drive more carefully. Whereas people around the age of 20 drive faster, taking the risk. Because of this, for those who are less than twenty, their car insurance premium costs more.

Therefore, while making car insurance, you must take advantage of your experience and age, and based on increasing experience and age every year, ask the insurance company to  reduce car insurance premium every new year.

3. Model of a car in car insurance premium

What is the engine capacity of your car? The brand and model of the car also affect the car insurance premium. The insurance premium of a sedan car remains higher than that of a hatchback.

4. Insurance cover has more impact on premium

What do you want to cover in your car insurance policy, It impacts the car insurance premium?

The more add ons cover you add, the higher your premium. That’s why you should add only those add ons covers to your policy that you really need so that you can reduce the cost.

Also keep in mind that to reduce the premium, do not leave out the necessary cover.

5. From whom do you buy car insurance?

From whom do you buy car insurance? It also makes a difference in your car insurance premium.

  • If you buy insurance from a car dealer, they have a fixed quotation (the policy they have made), and they will ask you to buy it accordingly. Therefore, buying insurance from a car dealer may cost you dearly.
  • After this, if you buy insurance from a car insurance agent, then you can choose a cover, etc. of your choice. You can talk to the agent about what should be in the policy and what should not. Buying from an agent may cost you less than buying from a dealer.
  • An agent will also try to sell you more expensive policies to make his commission. If you buy from an agent, then the company also deducts the money of the agent’s commission, due to which the premium of the policy can be expensive.
  • Buying car insurance online may be the cheapest for you. you can choose the cover of your choice, and compare the insurance policies of many companies themselves.
  • Along with this, you can also take advantage of many discounts and cashback offers online.

6. Deductibility

Deductibility is the amount of money you can contribute if your car is involved in an accident and the cost involved. You can reduce the premium by adding more money amount to the policy.

If you drive very carefully, then you can reduce the car insurance premium by adding the deductibility amount to the policy ”┬áreduce car insurance premium”.

7- Benefit of NCB (no claim bonus)

If you do not claim insurance for the whole year, then the rebate that is given to you in the renewal premium next year, we call NCB.
Therefore, while taking the policy, read the NCB policy of the insurance company carefully and compare it with the NCB policy of other companies. Then the company whose NCB policy suits you better, you can give more importance to that company while buying insurance.

Also, keep in mind that you should claim insurance only when needed. Before claiming you must think about whether it is right to claim or not so that you can take advantage of NCB.

8- Use ARAI

If you use an ARAI (Automotive Research Association of India) certified anti-theft device to protect your car from theft. Then you can get a discount on your car insurance premium.

To reduce your car insurance premium, choose the right insurance company and the right platform, only add the necessary cover to the policy and do not claim without need.
If you buy a policy keeping in mind other things, then you can definitely save 10 to 50% of your car insurance premium money.

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