Overpaying for your automobile insurance? You are not the only one. A large number of drivers feel stuck due to excess renewal charges, not knowing how to obtain the cheapest car insurance. But the good news is that you can save money without sacrificing coverage. Here in this guide, we expose ways to get the lowest premium without compromising full cover for your vehicle.
6 Tips to Get the Cheapest Car Insurance Policy
Getting a cheap insurance policy for car does not have to mean settling for less in terms of protection. Below are some useful tips that can help reduce your premium without sacrificing your peace of mind:
1.Compare Quotes Online
Never accept the initial quote you are given. Prices can differ significantly between insurers for the same cover. Comparing side by side on different car insurance calculator sites is definitely a smart step. One site might not have every insurer listed, so it is worth comparing at least two or three. This action can save you a substantial amount over the policy duration.
Choose the Right Coverage
It is easy to opt for a fully comprehensive policy, but that is not necessarily budget-friendly. Assess your real needs and skip unnecessary add-ons like accessories protection if they are not required. Moreover, making your policy specific to your driving style and car value can keep premiums lower.
Increase Voluntary Excess
Your excess is the amount you pay towards a claim voluntarily. The higher the deductible you choose, the lower the premium. Therefore, ensure it is something you can easily afford in the event of an accident.
Maximise Your No Claim Bonus (NCB)
A No Claim Bonus rewards safe motoring by lowering your renewal premium every year you are claim-free. To keep your NCB, drive carefully, pay for minor repairs yourself, and make as few claims as possible. You can save a lot of money over time.
Install Anti-Theft Devices
Usually, insurers give discounts for cars equipped with approved anti-theft devices such as steering locks, alarms, or GPS systems. Not only does this reduce your risk profile, but it also improves your chances of recovering the car if it is stolen. Consulting which devices your insurer accepts is a smart move.
Bundle Policies
If you also hold home or other types of insurance, think about insuring them with the same company. Numerous insurers offer multi-policy discounts, which can result in considerable savings every year and keep all your coverage with one provider.
Common Mistakes to Avoid While Buying Car Insurance
IRDAI statistics show that more than 60% of cars are not insured. Moreover, a majority of policyholders automatically renew without comparing rates, and many opt for plans that are not suitable for their needs. Here are a few more common mistakes to avoid while purchasing vehicle insurance:
Automatically Renewing Without Checking Rates
Most drivers automatically renew their current policy without checking prices. This "loyalty penalty" can cost a few extra thousand, as existing customers are seldom offered the best premiums from insurers.
Pro Tip: Always get quotes from a minimum of three insurers at renewal to secure better deals.
Over-Insuring an Old Car
It may not be wise to insure an old car with full comprehensive coverage. The Insured Declared Value (IDV) decreases every year, and investing in costly coverage for a vehicle worth ₹2–3 lakh or less might not be useful.
Pro Tip: For old cars, opt for third-party liability insurance with few add-ons to fulfil legal obligations without spending extra.
Ignoring Insurer’s Reputation and Claim Settlement Ratio
The IRDAI reports claim settlement ratios are generally between 65% and 95% among insurers. Lower premiums are useless if the insurer has a low claim settlement ratio.
Pro Tip: Look at the most recent claim settlement ratio before buying a policy. Opt for insurers with above 95% for reassurance.
Getting Trapped in "Cheapest" Without Verifying Terms
Some cheap policies have excessive deductibles, limiting clauses, or omit regular risks. The gains disappear when the claim is rejected.
Pro Tip: Read the policy wording thoroughly before purchasing. Ensure it covers important risks such as natural disasters, theft, and own damage without too many exclusions.
Final Thoughts
Selecting an adequate car insurance policy for your car is all about safeguarding it during mishaps. In that case, one of the key considerations becomes the cost, as it can vary according to the policyholder's needs and situation.
Before purchasing or renewing a car insurance policy, make sure you understand what you actually need in your vehicle and select the add-ons accordingly. Saving money on your insurance is easy if you clearly know your needs.