How to buy cheaper car and bike insurance: Eight hacks the agents won't tell you

Comparing quotes, maintaining high no-claim bonuses, choosing suitable vehicle models, and maintaining transparency in declarations can save you hundreds of rupees yearly

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Published: Thu 8 Feb 2024, 4:43 PM

Last updated: Thu 8 Feb 2024, 4:44 PM

Buying car and bike insurance can put quite a dent in your wallet. But there are ways you can legally pay less for your auto insurance premiums. Follow these eight hacks to buy cheaper car and bike insurance.

Compare Online Quotes

The first step is to compare online quotes from multiple insurers. It allows you to see the range of premiums available for car insurance in the market. Provide each insurer with the same parameters like vehicle make, model, year of manufacture, etc.

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This way, you get quotes that you can compare apples to apples. Spend some time researching rather than renewing your current policy automatically.

Claim Your No-Claim Bonus

One factor that significantly impacts auto insurance premiums is your No Claim Bonus (NCB). NCB discounts each renewal if no claim was made during the previous policy term. Maintaining a high NCB helps reduce insurance premiums over the years. Be extra careful to avoid accidents and claims to protect your NCB.

Choose Your Vehicle Model Carefully

Insurers classify vehicles into different segments based on price, size, performance, etc. Premiums are based on the predicted loss and claims ratio across segments. Some luxury, high-powered or expensive models have higher premiums. Opt for models in the lower segments with relatively affordable premiums that suit your needs.

Opt for Higher Voluntary Deductibles

A deductible is the portion of a claim amount you must bear in case of a covered loss. The insurer pays the claim amount beyond the deductible. Higher deductibles lead to proportionally lower premiums.

Most policies come with a default deductible amount. You can pay a higher voluntary deductible when buying a car or bike insurance policy. It could lower your premiums substantially.

Install Safety and Anti-Theft Devices

You can obtain attractive discounts of 5-15 per cent by installing approved security devices in your car or bike. These include:

  • Active vehicle tracking systems
  • Central locking system
  • Alarm system
  • Disc brakes

Such devices lower the risk of theft or severity of damage during accidents. Provide relevant proof to avail of these discounts from your insurer. Installing these devices is quite low compared to the premium discounts. So it's well worth considering.

Avoid Claiming for Smaller Damages

Filing smaller claims frequently can cause premium hikes. Insurance providers consider you a higher risk if small claims are regularly filed.

Assess if you can pay for minor repairs like small dents or replacing side-view mirrors out of pocket. Pay the garage directly rather than route it through insurance. It would cost you less than subsequent premium hikes.

Don't Opt for Expensive Accessories

Flashy rims and louder exhausts may make your vehicle look expensive. But remember, it can significantly higher the insurance costs. Avoid expensive accessories and modifications beyond factory settings.

Insurers charge higher premiums for modified vehicles as loss risks are higher. Stick to factory settings and avoid engine tuning or accessories that enhance speed or performance. Be prudent in what you add to keep insurance costs in check.

Maintain Transparency

While buying insurance, provide accurate and transparent information about your vehicle, add-on accessories, usage patterns, etc. Concealing facts can lead insurers to deny claims later.

Usage patterns like where the vehicle is parked on nights, daily runs, any past insurance declined cases, etc., impact risk profiling. So, state facts and avoid misrepresentations. Being transparent saves you future hassles in claim processing.

Conclusion

Implementing the eight hacks shared in this article can help reduce car and bike insurance costs. Comparing quotes, maintaining high no-claim bonuses, choosing suitable vehicle models, opting for higher deductibles, installing security devices, avoiding minor claims, skipping expensive add-ons, and maintaining transparency in declarations can save you hundreds of rupees yearly.

Published: Thu 8 Feb 2024, 4:43 PM

Last updated: Thu 8 Feb 2024, 4:44 PM

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