If you are a safe driver and never needed to use your car insurance to pay for any damages, you might have wondered about its futility while renewing the policy. Well, to some it may seem like an unnecessary expense, but wait till you need one. The cost of repairing damages on any day outweighs what you pay as policy premium annually. However, it is understandable that premiums can make you feel the pinch. But do you know there are easier and smarter ways to save big on your car insurance than lower your coverage? This New Year learn how you can save big on your CAR INSURANCE POLICY premium.

1. How to save big on car insurance through smart ways?

As a car owner, whether you are going to buy a new car insurance policy or renew one, here are a few things you should do:

Do thorough research: Comparing different deals is a must to know that you are not stuck with an average policy charging you a higher premium for a limited number of benefits. You can use the CAR INSURANCE PREMIUM CALCULATOR to see how much you will pay annually and then compare the benefits.

Renew it before the policy expires: Once your research is complete, buy the new insurance before the old one expires. Not only will it give uninterrupted coverage and save you from penalties if caught by the traffic police, but it will also help you save some money. See, if you go for renewal days after its expiry, the insurer may inspect the vehicle again and reduce your vehicle’s Insured Declared Value (IDV) or even increase your premium.

Picking the right IDV: Higher the IDV (it is the money the insurer pays in case of complete damage or loss of your car), higher will the premium. So, opt for the IDV that gives you adequate coverage while its premium suits your budget.

Using No Claim Bonus: Make the most of your accumulated No Claim Bonus(NCB). If you have not made any claim requests in your last insurance period, your NCB will reduce your payable premium significantly. If you wait too long to renew your car insurance policy, you will lose out on your bonus.

Other discounts: If you have installed anti-theft devices to protect your car against theft, you lower the risk for the insurer and therefore, are eligible for additional discounts.

Opt for Add-on covers: There are many useful add-on covers like Roadside Assistance or Zero Depreciation that you can include in your policy at a reasonable price. They boost your coverage and services. However, pick only those you think you will need the most.

Add a deductible: Deductible is a portion you pay after which the insurance policy kicks in. When you agree you pay a certain percentage of the damage, your premium cost goes down. If you are confident as a driver, you may opt for a deductible.

2. How should you re-evaluate the policy features of car insurance?

Everything has gone digital and you don’t need to visit offices or meet agents to know about the plans. You can simply visit the website of insurers, put in the details of your car and voila, you will get to see their offers. Now you can compare the plans. Also, there are several websites that have already posted a comparison of the plans along with expert opinions. Apart from premium and benefits, you should consider the claim process, the company’s claim settlement ratio and customer reviews.

3. What do you mean by score high with No Claim Bonus (NCB) Points?

It means not wasting your opportunity to earn No Claim Bonus points at the time of renewal by using the insurance money to repair minor damages. To reiterate, NCB can get you a heavy discount on premiums, so pay from your pocket to get minor scratches fixed and earn NCB points. Also, you can transfer these points when you change your car.

4. Why is the New Year Eve a good time to buy a car?

If buying a car is part of your new year’s plan, then the right time is here. At this time of the year, car manufacturers not only launch new cars with the latest features, but they also come up with attractive offers during the New Year. From pre-approved loans with easy instalments to heavy discounts on the insurance policy, you will be spoilt for choices. The offers are only for a limited time, so it’s better to hurry.


Are you up for your car insurance renewal? New Year plans can wait then. As the discounts offered make it one of the best times to renew your car insurance policy. Use the above-mentioned points as a guide to save big on your insurance premium and end the year on a high note.



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