How To Get the Best Premium for Your Car Insurance?

Your car can probably survive a few rough bumps on the road, but those car insurance premiums will totally wreck your bank. Indeed, finding car insurance that provides proper coverage without being too costly is difficult. 

But you’ve heard the saying that nothing’s impossible, especially for an informed policyholder like yourself. With the right knowledge and strategies, you can easily get a vehicle cover at an affordable price.

With that in mind, let’s explore some tips and tricks you can use to get your next car insurance at an affordable premium.

1. Compare Options

Tip number 1 is to just shop around until you find the best policy. Gather quotes from multiple insurance providers or do side-by-side comparisons on the PhonePe app. That way, you can leverage a quote from one insurer to get an even lower premium from the other.

Additionally, don’t just look at the price. Instead, compare benefits, claim settlement ratios, customer service reviews, and insurance coverage details. Understanding the full scope of what each policy offers ensures you get a reasonable price and adequate protection for your unique needs.

2. Purchase Insurance Online

Purchasing your car insurance online isn’t just convenient but can significantly reduce the premium cost. That’s primarily because there’s no third party involved in the process, and your insurer doesn’t need to pay an agent or car dealer a commission.

Moreover, trusted digital insurance platforms hardly use paper-based processing or require a physical place to hold meetings with clients. This reduces their operating expenses, allowing them to offer cheaper car insurance premiums.

3. Set the Correct IDV

Insured Declared Value (IDV) is the maximum amount your insurer will pay in case of total loss or theft of your car. It’s essentially the current market value of your car calculated by deducting depreciation cost from the original selling price. 

You are required to set your car’s IDV while purchasing a comprehensive or own damage cover. Now, you’ll want this value to be as high as possible because that would get you a higher insurance coverage amount. But that would also increase the premium amount. 

Setting a lower IDV, on the other hand, can reduce your premium since it decreases the insurer’s liability. So, ensuring the IDV accurately reflects your car’s market value is crucial to avoid being underinsured, balancing lower premiums with adequate coverage.

4. Drive Safely and Keep Your NCB

In the world of car insurance, no pain equals only gain. By steering clear of accidents and not filing any claims over a period, you can avail of the No Claim Bonus (NCB). This bonus is a discount on your premium when renewing your insurance and can range from 20% to 50%, based on consecutive claim-free years.

And that’s not all. NCB is attached to the policyholder rather than the vehicle. So, if you decide to transfer your insurance from one provider to the other, you can retain your current NCB. However, you must file your NCB within 90 days of policy expiration to benefit from this discount.

Additionally, if your car ever suffers minor damages and you can fix it out of your pocket, don’t raise a claim. This will again help you keep your NCB intact, and you can utilise it to reduce car insurance premiums at the time of renewal.

5. Consider PAYD Insurance

Pay-as-you-drive (PAYD) insurance is a type of comprehensive car insurance that adjusts premiums based on the number of kilometres you travel in your car. It can reduce your premium since it is linked directly to the vehicle’s usage in the policy period.

While this kind of vehicle cover isn’t for frequent drivers, it’s perfect for those who drive less frequently because the less you drive, the lower the premium. It can also be a practical insurance choice for your secondary vehicle if you have multiple cars.

Key Takeaways

The premium you’ll pay depends on various factors, primarily your car’s make and model, the extent of insurance coverage, and the add-ons included. However, by following these five tips, you can significantly reduce your car insurance premium costs. 

Always remember buying insurance is like buying any other product from the market. Look for better deals online, compare prices and benefits, and read the policy documents carefully before purchasing car insurance.