Did you know that motor insurance plans are compulsory in India? Well, they are! If you wish to drive your vehicle in India you'll need a motor insurance policy onto it, because of the provisions of the Motor Vehicles Act, 1988. The motor insurance plan includes specific coverage duration and after the duration concludes, you need to renew the insurance policy to enjoy uninterrupted coverage. Timely renewals of car insurance policy plans are essential if the policy duration expires, the insurance policy lapses. And what happens happens then? This lapse stops the coverage and if you are found without a valid motor insurance plan, you'd face fines and even legal complications.
Do you need to face fines? Renewing the policy is really much easier, isn’t it?
Timely renewals also provide you with another benefit – premium discounts!! Interested, aren’t you? Let’s have a look –
In the present pandemic, using the extended lockdown imposed by the Government, there has been fewer claims during the last couple of months allowing insurance providers to experience good profits on the policies sold. A lot of companies are sharing these profits with their customers in the form of premium discounts on renewals. Information mill allowing their loyal customers 15% to 20% premium discounts in the renewal premiums when the policy is being renewed promptly. So, should you renew your car insurance policy policy presently, you will get lower premiums on your comprehensive motor insurance plans.
These premium reductions, due to low claim experience, are being offered by only a handful of insurance providers. Others have not reduced their premium rates. However, keeping the present pandemic aside, there are various methods for availing discounts around the premium during the time of car insurance policy renewals. These ways are applicable to all car insurance policy policies as they do not rely on the insurer’s pricing policies. Let’s understand what these ways are –
- Use the accumulated no claim bonus
Comprehensive motor insurance plans allow you a no claim bonus on renewal if you don’t claim in the last policy year. Cool, isn’t it? This bonus permits you a price reduction around the renewal premium. Moreover, should you don’t make claims for successive policy years, no claim bonus continues increasing. It starts at 20% following the first claim-free year and rises to 50% after five successful claim-free years. Imagine!! Flat 50% off on renewal premiums. Could it get better?
Pro tip: Do not make small claims in your car insurance policy policies. Such claims nullify your no claim bonus and you lose the discount. Try and preserve no claim bonus to be able to get the maximum discount on renewal.
- Install safety devices inside your vehicle
Safety ought to be primary to save your lifetime, isn’t it? Well, let's say additionally, it provides you with discounts? Safety devices prevent the likelihood of accidents and/or theft and therefore are very beneficial from a claim point of view. If your vehicle is fitted with safety devices it reduces the prospect of claims. This earns a premium discount when you buy or renew your motor insurance policy.
Pro tip: Be sure that the safety devices have been approved by ARAI so that you could claim a discount.
- Opt for voluntary deductibles
Deductibles would be the portion of the claim that you simply pay out of your own pockets. Motor insurance plans have a compulsory deductible wherein you have to pay a specific amount of claim mandatorily. Besides this, it comes with an option of choosing a voluntary deductible which would be an additional amount of declare that you choose to pay. If you choose a voluntary deductible, the insurer’s claim liability reduces. Due to this reduction, the insurer offers a premium discount when you renew your plan. So, if you're a good driver with a low possibility of claims, opt for voluntary deductibles to take down premiums.
Pro tip: Weigh in the quantity of premium saved vis-à-vis the voluntary deductible limit you choose to undertake. The savings should outweigh the out-of-pocket claim so that it is economical for you to choose the voluntary deductible.
- Compare and buy
You always look around for clothes, don’t you? Why should an electric motor insurance plan be any different?
Motor insurance policies are easily portable and you can change insurers every time you renew your plan. Moreover, there are other than a dozen insurers offering an electric motor insurance plan for your vehicle. Why don't you compare? Thus, when renewing, compare the accessible policies to get the best deal on the premium rate. When comparing you are able to choose a plan which offers the cheapest premiums without compromising around the coverage benefits. This would, therefore, help you lower your premium on renewal.
Pro tip: Always compare the premium rates vis-à-vis the coverage offered. Don’t skimp on the coverage for a reduced premium because you would then incur out-of-pocket expenses during the time of claims.
Reducing your premium on renewals would become easy if you stick to the above-mentioned tips. Some insurers already are reducing their premium rates to motivate their clients to resume their plans in this pandemic and economic slowdown. Take advantage of this move to get the car insurance policy policy renewed at a lower cost. Moreover, the above-mentioned tips is needed in reducing your premiums further making renewals easy for your pockets. In the end, a penny saved is really a penny gained, right?
