As per the Indian Motor Vehicles Act, it’s mandatory for vehicle owners to have a car insurance. Read on to find the best hacks and tips to save money, while renewing insurance for your 5+-year-old vehicle.
Generally, most people go on with their current policy, when the time for car insurance renewal rolls around. The main reason for doing so is that people take this as the most convenient and hassle-free way to get things done quickly.
They fail to consider other factors – like vehicle depreciation, insurer policy revisal and more resulting in end up by paying higher premiums for a policy that might not be the best option for them.
While renewing your car insurance premium, it’s worth the effort to spend some time comparing available policies to pick the best one that suits you. A little research from your end can help you save good amount.
Here, you can Find the Top 5 hacks to Save Money while Renewing Car Insurance Premiums for your 5+-year-old Vehicle:
Tip #1: Compare Different Policies
While this may seem like a tedious chore but it’s worth the time and effort you put in. Today, there are dozens of car insurance companies in India such as Bajaj Allianz car insurance who offer a wide range of policies. Make sure to check out the available policies to pick one that suits your requirements..
There are insurance policy comparison sites, which simplify your job. All you have to do is specify your criteria, and you will get the list of policies that matches your search terms.
Key Takeaway – Compare Policies to be Aware of all the Available Options.
Tip #2: Evaluate the Features
Make sure to create a list of features that you’re looking for and those you don’t need in your car insurance policy. For instance, if your life insurance policy provides you with accident cover, then you need not pay extra premiums for accident cover in your car insurance policy.
However, if your car is fairly old with a few mechanical and engine problems, it may be prudent to invest in roadside assistance cover to stay protected always.
Key Takeaway – Pay premium only for the features that you need. But evaluate the features you may need.
Tip #3: Don’t forget the NCB
You’re eligible for NCB (No Claim Bonus) if you haven’t made any claims during the previous year. Make sure to include the NCB while renewing your insurance policy, thereby reducing the premium you’ll have to pay for the upcoming year.
Key Takeaway – If your vehicle has minor repairs that you can handle out of your pocket comfortably, then it makes sense to do so. This way, you become eligible for NCB, reducing the bulky annual premiums.
Tip #4: Set your IDV as per Your Vehicle’s Current Value
You would be aware that cars depreciate with age. Make sure to calculate your car’s current market value before renewing your policy. As per IRDAI rules, the IDV of the car is to be calculated after a set depreciation. However, once your car crosses the 5-year mark, the IDV of the car you set is mutually decided between the insurance company and the car owner.
Thus, make sure you evaluate your car market value to reset your IDV. While it could lead to a high premium, it may pay off in the future as it will also help you negotiate if you sell your car in the second-hand market.
Key Takeaway – Knowing your car’s current market value gives you the upper hand while negotiating the premium with your insurance agent.
Tip #5: Multi-brand Garage Network
As your car ages, it needs more repair and regular maintenance. While some car owners prefer to stick to the car company, a few others may opt for third party garages or multi-brand which can turn out to be a bit more affordable. Especially when it comes to body repairs, third party garages may turn out to be the better option for you. Although you may just have to usually share only 20% of the repair cost in the case of an accident, the amount can be quite significant. Thus, also check for the list of third party garages when evaluating a policy or an insurance company.
Key Takeaway – Do your research. Do not ignore the list of third party garages.
Final Thoughts – Don’t Renew without Planning
When the time for renewing your car insurance rolls are around, don’t just proceed with the same plan. Use these tips given here, to pick the right policy for your vehicle at the lowest price.