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Tata Capital > Blog > Insurance > How to Save Money on Car Insurance Premiums


How to Save Money on Car Insurance Premiums

How to Save Money on Car Insurance Premiums

Car insurance is a must-have for financial security while driving, whether you're rocking basic liability or full auto coverage. But don't pay more than you need to!

Instead, check out these savvy strategies to trim your car insurance premium and keep your hard-earned cash in your pocket.

5 Ways to Save on Car Insurance Premium

#1 Forego claims on small expenses

If you don't make any claims throughout the policy year, the insurer will reward you with a No Claim Bonus by reducing your premium by 20% the following year. The longer you go claim-free, the higher the discount you can receive on your premium. However, if you file a claim for minor repairs or other small charges, you may lose your NCB.

So, it's best to save your claims for significant expenses and avoid filing claims for minor damages you can afford to pay for out of pocket.

#2 Avoid extra modifications

Are you itching to give your car a major makeover? Hold up. The more you make alterations to your car features, the more premium keeps dumping on to cover for the extra features. And let's be real, repairing the customized parts of your car can drain your wallet faster than a speeding ticket.

 Moreover, if you opt for an over-the-top exterior or a gadget-filled interior, you might turn your car into a flashy target for car thieves. Unfortunately, it's a common mistake that many people make, only to find themselves in the future shelling out for both the alterations and the extra premium.

#3 Car insurance premium calculator

Using a car insurance premium calculator is the way to go to save money on car insurance premiums. It calculates the precise premium you would pay if you purchased a vehicle insurance policy.

Using a vehicle insurance premium calculator lets you compare premium rates and choose the best insurance plan with the right add-ons to fit your budget. Car premium is calculated by entering the details like vehicle type, RTO, claim details, etc., in the car insurance premium calculator.

This will help you make an informed decision and ensure you get the most coverage for your money.

#4 Raise your deductible

Consider increasing your car insurance deductible to reduce your premium costs. A higher deductible means you'll pay more out of pocket if you need to make a claim, but your monthly premiums will be lower.

For instance, if you have Rs. 5000 deductible and make a claim worth Rs. 20,000, you'll pay the initial Rs. 5000, and the insurer will cover the remaining Rs. 15,000. However, before opting for a higher deductible, ensure you've enough savings to cover the deductible amount in case of an accident.

#5 Drive safely

Maintaining a clean driving record can help you save up to 20% on your insurance premium, but many drivers often overlook this. Insurance companies assign points to drivers for traffic violations and fines; as the points accumulate, so does the premium amount.

Therefore, driving safely and avoiding violations is important to keep your driving record clean and your insurance premiums low.

In the end

Another way you save on car insurance premiums is by comparing premiums and benefits offered by different policies. This you can do by using a vehicle premium insurance calculator. Additionally, installing anti-theft devices in your car can significantly increase its safety and may qualify you for discounts on premiums.

Looking for the ultimate car insurance deal? Look no further than Tata Capital! Our process is hassle-free, making it easy for you to get the coverage you need. And the best part? You can even purchase your policy online, saving you money that you otherwise would have to give to an agent offline.

So, don't wait – apply now!

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