If you own a car you probably know that you need insurance. Investing in insurance is not only necessary but also mandatory as per the Government mandated Motor Vehicle Act of 1988. You also need to renew your insurance policy every year in order to continue receiving coverage. However, the premium amount you pay can change each year, based on many factors. In fact, you can even save money while renewing your policy. Here are a few things you can do to save money while renewing your car insurance policy.
File no claims: Anyone who owns vehicle insurance knows that there are many benefits of not filing claims as opposed to those of filing. For each year that you don’t file claims, you become eligible for a discount on your insurance premium known as a no-claims bonus. This discount increases to a maximum of 50% for five consecutive years of not filing claims. You can use your accumulated no-claims bonus and save money during car insurance policy renewal.
Don’t flout traffic laws: If you are caught flouting traffic laws such as driving without license, insurance and PUC certificate, your vehicle could be reported to the RTO, police station and your insurance provider. The same applies if you are caught driving without your seat belt on, speaking on the phone while driving or driving under the influence of alcohol, drugs and other intoxicating substances. These behaviours are regarded as risky, giving insurance providers the leverage to increase your premium amounts. You can simply save money by not doing any of these things
Don’t file for small damages: If your car bangs into a pole or endures some scratches you may be tempted to file for insurance. But these are minor damages that you can pay for yourself. While the insurance provider will not reject your claim, your insurance premium can increase considerably. Instead of spending thousands extra and foregoing your no-claims bonus it is better to pay for small damages yourself and save money on car insurance renewal.
Install an anti-theft device: Installing an anti-theft device is a great investment. Not only does it scare away potential thieves, it also helps bring down your insurance premium amount considerably. As your car becomes less prone to theft, so do your instances of filing claims which is why insurance providers offer discounts on premiums on car policy renewal if you have installed this device.
Renew your policy on time: Another way to save money on premiums is renewing your policy on time. For each day that you drive without a valid insurance policy, you are flouting traffic laws. When you finally begin the car insurance renewal process, you are charged a penalty for each day of driving without insurance, which can increase the payable amount. On the other hand, you can get a discount for renewing your policy on time.
Become a member of AAI or WIAA: All individuals who are members of road safety associations such as Automobiles Association of India (AAI) and/or Western India Automobile Association are eligible for discounts on their car insurance premiums. This benefit is offered by all insurance providers. Joining these clubs automatically promotes savings on insurance premiums.
Renewing your car insurance policy is just as important as purchasing it. It provides you legal and financial coverage in case you are in an unfortunate situation like an accident or if your car is stolen, damaged or totalled. All insurers allow you to do car insurance renewal online these days. Simply renew your policy on your insurance provider’s website and receive your documents at your registered address.