• 8 ways on how one can save on motor insurance premiums

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    Owning a car is a luxury and the government has made it mandatory for every individual owning a car or any motor vehicle to have it insured. However, it is understandable that everyone would want lower their premiums so as to save money wherever possible. Hence, there are certain ways through which one can save on their motor insurance premiums.

    1. Increase the deductibles - The deductibles is the amount a person pays in case of a vehicle repair and the insurer covers the rest. If an individual can increase their deductible, the premium payable can decrease significantly. However, care must be taken when choosing the deductible amount so as to ensure the policyholder can afford it. Having an extremely high deductible defeats the very purpose of having insurance.
    2. Always compare and make online purchases - This goes without saying that before a person decides to buy insurance, they should always compare the plans offered by various insurers as one can then determine the plan not only suitable for them but are also able to figure the cheapest plan of them all. It is also important that a person purchases their insurance online as the process is easy and hassle-free in nature and saves a lot of time. Purchasing insurance online is cheaper as there is no middlemen involved and the premium paid by you is utilised directly by the insurance company so as to successfully maintain the person’s policy.
    3. Don’t make small claims - Not many people may know this, but various insurers may offer a No-Claim Bonus if the policyholder does not make any claims during a certain policy year. It is recommended that a customer does not file claims for the smallest of vehicle repairs, rather pay for it through their wallet if it is affordable. Making frequent claims not only means that the policyholder will not get to enjoy any No-Claim Bonus but the premiums will also rise subsequently.
    4. Transfer your No-Claim Bonus - No-Claim Bonus or NCB helps the policyholder in saving on their premiums and in case he/she is purchasing a new car and selling their old one, care should be taken to transfer their NBC without fail. The customer must understand that it is a kind of gift that they have received over the years for not making any claim and it should be used so as to save more money. Not transferring the NBC means that the policyholder is letting go of that benefit and he/she will have to shell out more from their pocket that they could have otherwise saved.
    5. Declare correct IDV - Insured Declared Value is the value of the customer’s car set by the insurer. This, in short, is the sum assured which will be paid to the policyholder in case of total damage caused to the vehicle. Many people declare the value to be low so as to save on premiums which can come to bite them at the time of making a claim. Hence, a policyholder must ensure that they declare the correct value of their vehicle.
    6. Being a member of WIAA or AAI - Becoming a member of Western India Automobile Association or Automobile Association of India can help a policyholder in getting lower premiums. These bodies are licensed companies which are approved by the Motor Vehicles Act. A customer can get a discount on the insurance premium just by becoming a part of these organisations.
    7. Installation of anti-theft devices - Taking care of one’s car from a security point of view may help a customer in saving on their insurance premiums. If the policyholder is installing vehicle tracker, airbags, keyless lock device, anti-theft alarm, steering wheel and gear locks, etc. it means that they are making an effort to take care of their vehicle which can help them save on their insurance premiums.
    8. Don’t allow the policy to lapse - The customer should ensure that they renew their policy on time because in case it lapses, they can lose out on the NCB and other benefits. The customer must put a reminder or make sure that they receive the reminder for the renewal of policy on time.

    Hence, these are some of the methods which one can follow to ensure that he/she is saving a great amount of money on their motor insurance premiums.

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