Renewing Your Car Insurance? 5 Tips That Can Help You Save Money

For every car owner, motor insurance is definitely a big headache. But if treaded carefully, you can not only save, but also get added benefits for the same price. Here're five such tips that you can refer to while you renew your car insurance.

Compare different policies

It may seem like a tedious job and continuing with your existing insurance option may seem to be the best option. But why not compare, when there are various websites available that make the insurance comparison process easy and hassle-free. For e.g.: policybazaar.com is one website where you can compare insurance packages and get the best deal.

Read the fine prints

The policy package may seem to be a great deal with several discounts among others. But read the fine print and understand the hidden clauses while buying the policy. Read each detail carefully and understand their implications to avoid hassles in the future.

Calculate Your Vehicle’s Value

We have all hated mathematics. But a little mathematics can save us from shelling out large premiums. It is extremely important that you calculate your car’s market value before you renew your insurance. Once the depreciated value of the car is known, you can negotiate with your insurance agent over the premium amount, and save quite a lot. Consider this, if the market value of your car at the time of purchase was Rs 4 lakh and after three years, its value is Rs 2 lakh then your car’s value has depreciated by 50%. Hence, while renewing your car’s insurance, you should take a policy on the depreciated value Rs 2 lakh instead of the original market value Rs 4 lakh.

No Claim Bonus

It’s the award that one gets for being a good student. And in this case, you are rewarded by the insurance company for not making any claims under your existing policy. Ensure that you claim your No Claim Bonus after your policy matures as it can reduce the premium amount by up to 50% over the years.

Claim Higher Deductibles

Experts have always suggested that by claiming higher deductibles, one can reduce the premium that is paid later. Voluntary Deductible is the amount you pay at the time of the claim; and if you pay a higher a voluntary deductible, then it converts into a sort of premiums-discounts over time.

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