Motor Insurance Premium charges each year keep rising, though the depreciation in the cost of the vehicle tends to bring down the insurance premium.
There are many ways in which you can bring down the cost of your motor insurance premium. For that you need to be alert, look for freebies and also look for norms that could be cheaper for you.
1) Take a careful look at the riders
Please choose every rider carefully and see if you need the same. For example, if you already have a personal accident cover separately, it makes no sense to buy a cover at the time of the renewal of your motor insurance premium. This could also be the case for a driver that you may employ. At the same time, if you do not have a cover for the above, you might want to take one.
2) Add-ons will cost you more
Add-ons on your vehicle like LPG kit, cover of insurance for co-passengers will cost you more. However, at times these are all necessary and cannot be done away with.
3) Look for discounts offered to select professionals
Many insurance companies offer discounts to select professionals like Doctors, Teachers and Chartered Accountants. Look whether these discounts are meaningful and could reduce your premium significantly.
4) Discount for being part of associations
You may also get a discount, if you are a part of the Western India Automobile Association, Automobile Association of Southern India and many such associations. Check with the insurance provider, if there is any such discounts.
5) Compare online
This is perhaps one of the most important things to do. There are many websites in the country, which offer you a quick comparison of insurance policies online. One of the most important things is to look for the Insured Declared Value (IDV) when comparing policies online. What this means is that this is the maximum you can get, if your car is destroyed or stolen.
Let's cite this with an example. Let's say when you compare online motor insurance premium, it throws up three insurance companies with varying premiums. The 1st is Rs 5,000 premium for an IDV of Rs 2 lakhs, the second is Rs 4,800 with an IDV of Rs 1.8 lakhs and the 3rd is Rs 4,600 insurance premium with an IDV of Rs 1.6 lakhs. As you can see the premium is lower in the case of the 3rd insurer, but, so is the IDV.
So, make your choice carefully.
6) Do not forget your No Claim Bonus
No Claims Bonus' are paid when you do not have any claims made during the year, which reduces your motor insurance premium in the current year. The discounts on these can range from 25 per cent and above. So, make sure it is taken into consideration when filling the policy declaration.