Want to make your car insurance cost-effective; here’s all you need to know

The vehicle prices have been going up pinching the pockets of buyers. With cars becoming expensive, motor insurance policies have also become costlier at a time when inflation has already upset the family budget. However, with a few tips, you can make car insurance cost effective. For example, one of the simplest ways to save on car insurance premiums is by paying premiums on time so that you do not lose out on continual benefits.  

“Select the insurance cover and add-ons purely based on your requirement and vehicle usage. You can invoke various concession and discount opportunities like higher voluntary deductible, anti-theft device discount, automobile association membership discount etc. at the time of buying insurance,” said Rakesh Jain, CEO of Reliance General Insurance Co. Ltd.  

Similarly, a No Claim Bonus (NCB) is one of the best ways to save on your motor insurance premium. It rewards policyholders for every claim-free year with a discount on the renewal of the motor insurance policy. For instance, one gets a 20 per cent discount for the first claim-free year, 25 per cent after the second year, 35 per cent after the third, 45 per cent after the fourth, and 50 per cent on the fifth claim-free year.  

“The insured should be aware,  that there is a provision of NCB reserving, in which an insured can get his/her NCB transferred to his/her new vehicle and can take benefit of lower premiums. It is also recommended to buy insurance with an adequate IDV (Insured Declared value) so that the consumer can receive adequate cover in case of car damage,” says Indraneel Chatterjee, Co- founder, RenewBuy.   

In addition to own damage and the mandatory Third-Party cover, opting for a few crucial motor insurance add-ons will be a smart thing. “It enhances the overall financial protection for your car and makes your car insurance cost-effective at the time of claim,” says Jain.  

“Consumers should wisely choose the add-on covers, as per the location and usage of a particular add-on. For example, a customer should opt for covers like Geo Extension, only if he is taking his vehicle outside the Indian geography,” adds Chatterjee.  

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