A lot of people often question the whole point of insurance. “Do I really need to be worried?”, they ask. Insurance is a lot like first-aid bandages. You hope you never need them but it’s a relief to know they’re available in the event of an unforeseen circumstance. The point is, coverage is important.

Insurance can largely be said to be divided into life insurance and non-life insurance. Non-life policies such as car insurance, health insurance, home insurance etc. are collectively known as General Insurance. Given that insurance premiums can sometimes be high, it’s not uncommon to wonder how one can save on general insurance. Here are some tips to help you save up on your general insurance premiums.

Weigh your options

As with any other product in the market, several competitive insurance policies are floating around. With the digitization of the quoting process, it is even easier to find the best deals. Therefore, it would be unwise to simply grab the first deal you can get hold of. An ironclad rule regarding new insurance would be to get at least three quotes before you make a decision, though further comparison is recommended. You can also have different insurers bid for your business by filling up of just one application form. Furthermore, the help of an insurance agent can also be sought. Do keep in mind that an agent will charge a commission that may result in a higher premium cost.

Direct purchase and renewal

Agents have a thorough knowledge and deep insight and can help you purchase the best policy, but they will certainly charge a commission for it. This commission amount will be added to the cost of insurance. There are several insurers working to establish a direct conversation with the customers to altogether eliminate the role of middlemen. In today’s digital world, getting an insurance policy online is just a few clicks away and demands to be made use of. Many insurance companies, such as Tata Capital provide online services where you can directly apply for a new policy or renew an existing one without any hassles. Direct policies may end up being the cheapest option since agent’s commission is not added to it.

Renew your policy punctually

“Better three hours too soon than a minute too late.” Make sure that you renew your insurance policy periodically. Failure to make timely payments may lead you to pay a much higher amount in order to keep your policy in force or the worst-case scenario could be a policy termination. Also, you may lose out on all the ‘No Claim Bonus’ benefits. For example – In the case of car insurance, ‘No Claim Bonus’ leads to a reduction in the premium amount whereas in the case of health insurance, ‘No Claim Bonus’ adds up to the sum insured. Hence, you do not want to miss out on the edge that you can have by simply being punctual.

Keep (smaller) claims at an arm’s length

Now, this may sound absurd. After all, are not claims the whole purpose for which insurance policies are issued in the first place? Yes absolutely! The catch is in the word “smaller”. What generally happens is that the rate of premium is directly proportional to the number of smaller claims that you file. Hence, try to pay for such claims out of your own pockets if you can. This way, you can not only enjoy lower premiums in the subsequent policy terms but also enjoy the benefits of ‘No Claim Bonus’.

Seek expert guidance

Lastly, the best way to have all your queries cleared, especially if you’re running short on time is to get in touch with the experts of the field such as Tata Capital’s Insurance experts. They will walk you through the alpha and omega of general insurance in India, ensuring that you get the right policy for your needs.

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