The premium cost of your car insurance policy can vary greatly depending on various factors. To help you save money during renewal, mentioned in this post are five tips that you must remember while renewing your car insurance policy.
Renewing car insurance policy can be an overwhelming exercise for many. With so many jargons thrown at you by insurance agents, it can not only confuse you, but you could also end up paying a premium that isn’t justified. Thus, it is important to remember a few tips that can help you save a good amount of money on your car insurance premium.
- Reduce Your IDV: Insured Declared Value or the IDV is the insured sum of your car that the insurance company promises to pay in case of total damage to the car.
- This amount is calculated as per the market value of your car minus the depreciation charged every year. One of the simplest ways to reduce your premium is by reducing the IDV of the car. But wait, this can have serious ramifications. Reducing it below the correct value can reduce the market value of your car during reselling. Moreover, you can suffer huge losses in case your car suffers total damage.
- Remove the add-ons you don’t Require: The add-ons you take can increase the insurance premium cost. While most of these add-ons are quite helpful, some can only be a drain to your pocket. Here are the popular add-ons that you may be asked to select every time you renew your insurance policy;
- Return to invoice
- Zero depreciation
- Tyre cover
- Key Theft Cover
- 24 X 7 roadside assistance cover
- Personal belongings cover
Make sure you choose ones that you might require and remove the rest from the list.
- Opt for a Higher Voluntary Deductible: At the time of renewing your car insurance policy, you can reset your voluntary deductible limit. This is the amount that will be borne by you every time you file a claim. Increasing this amount can reduce your premium. However, do note, this is the amount you promise to pay from your pocket every time you make a claim. Hence, choose wisely.
- Install Anti-theft Devices: Taking security measures to protect your car can impact the premium of your car. Devices such as theft-alarms, gear locks and more can help you reduce the premium cost of your insurance. However, make sure these devices are AAI (Automobiles Association of India) certified to ensure you get the discounts on your premium.
- Use Comparison Portals: Last but not least, is to compare quotes from at least a few companies and pick the one that best suits you. Third-party portals that let you compare and buy can be your best friend during car insurance renewal. Just make sure you compare the policies carefully before you buy the best policy. Here are a few factors to keep in mind when comparing car insurance quotes.
- IDV of the car
- Add-ons provided
- Inclusions and exclusions of the policy
Save Money and Buy the Best Car Insurance Policy
Renewing your car insurance policy can be a smooth breeze if you follow these tips. And once you have chosen, make sure you get the policy document in your email. Don’t forget to take a printout of it and keep a copy in your car.