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How to Save Motor Insurance Premium

Motor Insurance Premium

According to the law, you must have a valid motor insurance policy for your vehicles in order to legally drive or operate them on the road. Motor vehicle insurance is mainly of two types, third-party and comprehensive and the latter offers the best value for the buck and overall coverage for both the insured and the third party. However, it can cost you a lot of money and in this article, we will talk about a few popular methods through which you can save on motor insurance premiums. 

  • Buy Online

    The first step to saving money on motor insurance premiums is by opting for the online method. By buying motor insurance online, you will have access to various available and offered choices in the market. This way, you can curate through the options and select the perfect plan for your vehicle at a reasonable price point. You can also compare similar policies from other vendors/providers and go with the more reliable and affordable one. Also, through this method, you will not have to face any external persuasion from the salesman, which will allow you to make clear decisions.

  • Carefully Select Add-ons

    Insurance companies offer quite a lot of optional coverage packages (add-ons) with their comprehensive motor insurance policies. Even though they are very useful and important, adding them to your coverage will increase the overall payable premium amount. Thus, you should only pick add-ons that you deem necessary to minimize policy premiums. For example, if your vehicle use is strictly based within the city, where mechanical garages are available in abundance, you can skip out of the “roadside assistance” add-on. 

  • Renew Policy on Time

    You should always renew your motor insurance on time and avoid getting your policy lapse. Insurance companies also offer a grace period of certain days, where you can renew an expired policy and avoid relinquishing the continued benefits. By renewing your policy on time, you will be able to retain the NCB, which is offered for passing through a claim-free term year. By having this NCB, you can get additional coverage without the need to pay extra or get the existing coverage at a discounted price tag.

  • Install Safety and Security Features

    By installing safety features on your vehicle, like an alarm system, anti-theft device, etc., you will be getting additional security and protection for your vehicle. Another great benefit of adding security and safety measures to your vehicle is that it generally attracts a lower premium slab. This is very helpful in case of reducing motor insurance premiums, especially when you have an older vehicle.

  • Avoid Claims for Minor Damages

    The no-claim bonus (NCB) works as a discount and is offered to the insured for not making any insurance claims in the preceding term year. This is why it is very important to maintain it via claim-free years. If you face minor damages to your vehicle, it is better to cover those expenses yourself rather than make a claim as it can ruin your claimless term year status, depriving you of the NCB.

This has been an article about a few popular ways to save on your motor insurance premium. Do invest in a good premium for your vehicles and apply these methods for savings in terms of the policy premium.

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