Top Tips for Saving Money on Car Insurance

1. No Claims Last year – Get No Claim Bonus (NCB) and you can save up to 50% of Own Damage Premium.

What is No Claim Bonus?

If you do not have any insurance claim/s, you get No Claim Bonus (NCB) at the rates mentioned below (based on no of years of no claim) – the premium is accordingly reduced. The NCB increases each year (as indicated below) till no claim/s is/are there –

The rates of the NCBs (No Claim Bonus) –
20% on 1st renewal.
25% on 2nd renewal.
35% on 3rd renewal.
45% on 4th renewal.
50% on 5th & subsequent renewals.

Note – That the NCB turns 0% on insurance claim & restarts afresh (as mentioned above) from the subsequent renewal.

2. Anti Theft System – Install a certified (approved by the Automobile Research Association of India (ARAI), anti-theft system; You will get 5% rebate subject to maximum of Rs. 200/- and additional 2.5% rebate subject to maximum of Rs 500/-(If car alarm system is installed in a vehicle). Above rebate can be claimed at all nationalised and private Insurance Companies on production of AAUI membership card.

What is Anti-theft System?
An anti-theft system is any device or method used to prevent or deter the unauthorized appropriation of items considered valuable.

3. Additional Riders – Buy additional riders, (e.g. – Medical Expenses Reimbursement Cover, Depreciation Cover, Ambulance Charges Cover, Personal Effects Cover), which are optional forms of coverage, only if you need them.

What is a rider?
Riders are additional but optional benefits that can be included to your basic policy to enhance your policy depending on your choice. There is an extra cost that one needs to pay for rider.Riders are always attached to the basic policy and they cannot be purchased separately.

4. Voluntary Excess – If you agree to pay a higher excess, then you can save more on premium.

What is Voluntary excess/deductible?
A voluntary excess/deductible is the amount of money that you have to pay when you file a claim with a motor insurance company. For example if you file a claim of Rs 2000 and as per your plan, the deductible is 20%, i.e Rs 400. In this case you pay Rs 200 and the balance Rs 800 will be paid by the motor insurance company. You may opt for an insurance plan that is high on deductible and low on premium, in the case you are not going to file claims too often.

5. Online Shopping – Shop around and compare prices and coverage. It might be time-consuming to repeat your details to several providers but you could save plenty. Compare the premium by online comparing sites like – policybazar.com, apnapaisa.com, insurancemall.in, insurancepandit.com etc.

6. Read the Fine Print – Take a good look at what you’re buying. The policy might cost less, but if it wouldn’t cover you in the event of loss, then it would prove much more expensive. Please also take care about coverage that it covers the risk you are looking to cover, so discuss with your insurance adviser first, before buying online. Get at least three quotes on comparable policies, and ask questions about the policy’s renewal & claims etc. Don’t just compare the prices of the insurance products, compare the benefits of the cover, the exclusions on the cover and other product features.

7. Insurance Reminder – Use Insurance Reminder services offered by some websites like ICICI-Lombard, HDFC-Ergo etc. It will help you in filing your premium in time or regularly and also saves the cost of late fee or reinstatement cost.