Top Ways to Save Money on Car Insurance Renewal

If you own a car in India, you must compulsorily have car insurance coverage; it is a legal requirement as per Indian Motor Vehicles Act. Also, you must renew your policy on time so that you can continue to enjoy its benefits and get financial protection against accidental damages. When you buy or renew a car insurance policy online, you must ensure that you get the best deal. If you are looking for ways to save money on car insurance renewal, here are a few effective tips.

Check the policy features

Before you initiate the car insurance renewal process online, you must take time to assess your current policy's features and benefits. This will help you know whether the coverage you purchased a few years ago is still relevant. It is paramount that you keep your policy up to date.

For example, if the car manufacturer is offering you some complimentary cover, you can easily skip this feature when you renew the policy. This way, you can avoid paying for the features you are not using and reduce the premium cost.

Be aware of the policy terms and conditions

Before you renew your car insurance, it is a good idea to review your policy papers and read the terms and conditions mentioned. When you review the terms, cross-check them with the information and updates mentioned on the insurer's website.

The website may mention offering a particular discount or additional coverage that policyholders can avail. So, when you do the car insurance renewal, you can renegotiate the terms and save money in the process.

Renew on or before the due date

Another effective way to save money on car insurance renewal is to be aware of the thumb rule, i.e., to renew the policy on or before the due date. It is better to renew the policy a few months before the expiry date. If you fail to renew the policy on time, the insurer may levy a penalty fee. If you fail to renew within the grace period, you may have to pay a higher premium thereafter.

So, to avoid this situation, it is better to note the policy expiry, renew the policy beforehand, and save money.

Take advantage of the NCB

If you have not filed a single claim during the policy year, you may be eligible for NCB (no claim bonus) from the insurance company. NCB is basically a reward that insurers offer to policyholders for driving safely and not filing a claim during the previous year. The bonus is usually in the form of a discount on the premium upon renewal. So, if you have any accumulated NCB, you can redeem it during renewal and save money.

Compare the policies

When you renew your car insurance policy, you need not necessarily renew it with the same insurer; you can switch your policy to a different insurance company. So, when you do the renewal, compare the policies from different insurers. If you find another insurer is offering the same coverage you have now at a much lower premium, you can switch your policy and get the coverage at a lower price.

Final Word

So, now that you know how to save money on car insurance renewal, use these to your advantage and get valuable savings.