How To Cut Down On Insurance Costs For Your SUV? 

When you buy a car, you pay for convenience. Aside from maintenance, you must also pay for the vehicle’s insurance, which consists of two parts: ‘third party’ and ‘own damage,’ also called ‘comprehensive’ insurance. While the first covers any damage or injury suffered by a third party in the event of an accident, the latter covers damage to your vehicle.  

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You can reduce the cost of your comprehensive car insurance online or offline, by customising your coverage and being aware of several other factors. Here are some methods for lowering your car insurance premium. 

1) Purchase the insurance that states ‘pay as you drive: 

This is a new concept in the Indian automobile industry that has been available since 2020. Under IRDAI’s regulatory sandbox guidelines and is only permitted to be marketed by a few insurers.  

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Being a usage-based offering wherein the insurer charges a premium only for the number of kilometres fixed at the policy’s inception, for both new insurance purchase and car insurance renewal. However, the insured receives the same benefits as a traditional comprehensive cover. 

2) Only purchase some add-on covers: 

The base cover does not cover all types of damage. Add-ons broaden the scope of your comprehensive coverage, but they raise your premium. It would help if you chose the add-ons based on your needs. As a result, you can easily avoid policies such as daily allowance coverage or personal belongings loss coverage. 

3) Avoid making too many modifications or upgrades: 

If you make any changes to your car, such as installing a CNG kit or an electronic device, you must notify your insurer because it may affect your premium. Theft-inducing modifications, such as wheels, car interiors, or paintwork, should be avoided.  

4) Avoid making minor claims: 

If your vehicle sustains minor damage, such as scratches or small dents, you should avoid filing a claim because you will be ineligible for a no-claim bonus (NCB) at the next renewal. NCB is a premium reward your insurer receives for not filing claims during the policy term.  

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Using an online website or calculator to calculate car insurance premium will help you find the add-ons that are both essential and affordable. 

5) Fit anti-theft devices to your vehicle: 

Another simple way to lower your car insurance is to reduce the likelihood of the vehicle being stolen. The higher the level of security, the lower your premium. You can install anti-theft devices like gear locks, anti-theft alarms, and steering locks from registered manufacturers to get premium rewards. 

This can also help in maintaining the zero dep insurance for car, to avoid any charges during the claim settlement.  

6) Increase your deductible: 

The deductible is the cost you pay out of pocket before the insurer covers the claim. The higher the deductible, the lower your insurance premium will be. If you are confident in your driving abilities or do not frequently drive, choosing a higher deductible to lower your premium may be a wise idea. 

7) Transfer NCB to a new vehicle: 

Suppose you have accumulated a sizeable no-claim bonus over the last 6-7 years and are planning to purchase a new car. In that case, you could significantly reduce your premium by transferring the NCB from your old insurance to the new car insurance. 

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Ensure to calculate car insurance premium online to find the apt add-ons based on your needs and affordability.  

8) Join an automobile association: 

Another simple ruse to get you a fixed reward on car insurance online or offline, is joining registered bodies such as the Automobile Association of India (AAI) or the Western India Automobile Association (WIAA). 

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# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.