Tips to Reduce Your Motor Insurance Premium Costs

It is mandatory for every vehicle owner to have a motor insurance policy in India. And even if it was not, having one can keep your protected against financial losses in case something goes wrong. While one may choose to buy car insurance online to eliminate infrastructure and distribution channel expenses coupled with overhead costs, there are few ways by which the premium one is paying may be effectively reduced. Some of them may be listed as under:

Compare Motor Insurance Policies Before Buying:

It is always advisable to compare features and benefits of policies offered by various insurers. In addition to scanning the websites of these companies, vehicle owners can log on to portals run by online insurance aggregators to compare the insurance premium rates quoted by various companies. Buying any kind of insurance through online distribution channels proves to be cheaper than that obtained via conventional method. In addition, it makes sense to invest in motor insurance policies sold by other insurance companies as opposed to buying the same kind of policy for the same car each year. Choosing a different motor insurance policy raises the chances of availing discounts on premiums to be paid.

Select Additional Riders Wisely:

Premiums paid on a “no frills” policy are lesser than policies with add-on features. The proportion of premium one has to pay goes up with the choice of every additional rider. There is a need to choose each rider carefully keeping in mind the nature and extent of coverage you are looking for while insuring your vehicle as every rider added would correspond to an added amount on premium charged.

Increasing The Amount Of Deductibles:

Apart from the extent of coverage that policyholders look for while buying car insurance online or offline, there is a certain amount that one agrees to pay out of pocket. This is called deductible. While choosing a motor insurance policy or during renewal of the policy, one needs to choose the percentage of voluntary deductible value. The higher amount one agrees to pay out of pocket, the lower would be the premium charged. Thus, choosing a higher deductible value lowers the premium payable by a specified percentage.

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