Car insurance is mandatory for Mumbai car owners, but it does not necessarily mean that you need to spend a fortune on it. With the correct approach, you can easily minimise your premium and yet have good coverage. Whether you compare policies or avail yourself of discounts, there are several options available to cut down on your expenses.
In this blog, we will share some useful tips for reducing your car insurance cost without compromising on coverage.
Seeking the most affordable car insurance rates in Mumbai can be difficult because of the city's high expense rate. Here are some tips and tricks which you can follow to save money on car insurance:
1. Compare Multiple Insurance Providers
One of the simplest ways to lower your automobile insurance premium and find the best car insurance in India is to compare premiums offered by several insurers in Mumbai. Different companies provide a variety of premium amounts and policies, so researching and selecting the most affordable option is crucial.
Comparing different vehicle insurance plans will give you multiple options. Select the one that best suits you. Always refer to customer reviews and claim settlement percentages before choosing.
2. Install Anti-Theft Devices
Insurance providers offer discounts for cars fitted with anti-theft systems because Mumbai is the hub of car thefts. ARAI-approved security features like steering locks, gear locks, or GPS tracking can reduce your premium.
Moreover, a few insurers offer up to a 2.5% discount for anti-theft systems. However, the discount is only available if your vehicle is damaged during an accident, and the third-party premium is not included.
3. Opt for a Higher Voluntary Deductible
A voluntary deductible is the amount you pay yourself before your insurance covers the rest. Increasing your voluntary deductible reduces your premium because you are taking on more financial burdens while claiming. For instance, if you commit to paying Rs. 6,000 rather than Rs. 3,000 as a deductible on your insurance policy for bike, your premium will come down substantially.
With a higher voluntary deductible, it is possible to manage expenses flexibly. This is because while filing a claim, you accept a more significant upfront cost that helps to lower your premium.
4. Bundle Your Insurance Policies
If you hold multiple insurance policies, like home and health insurance, you can combine them with the same insurance company. Most insurance providers in Mumbai give discounts to customers who purchase more than one policy, making it cheaper overall. Apart from this, it is easier for you to manage different kinds of insurance policies. So, ask your insurer if they provide bundling discounts for car insurance and other policies.
5. Maintain a Clean Driving Record
Insurance companies in Mumbai offer discounts to safe drivers. Not getting traffic fines, driving rashly, and dealing with accidents can earn you a No Claim Bonus (NCB), lowering your premium by as much as 50% in the long run. With a safe driving habit, it is possible to get a lower premium because of the reduced risk.
6. Take Advantage of the No Claim Bonus (NCB)
Policyholders who do not file any claims in a policy year receive a No Claim Bonus. The reduction begins at 20% for the initial claim-free year and increases to 50% after five years. Ensure your NCB is shifted to your new policy when you change insurers so you can continue enjoying the advantage.
7. Choose Usage-Based or Pay-As-You-Drive Insurance
If you do not drive your car often, opt for a usage-based or pay-as-you-drive insurance policy. These policies pay premiums depending on how much you drive, saving money for infrequent drivers. There are predetermined kilometre slabs of 2500 km, 5000 km, and 7500 km, which allows an insurer to select a slab and pay a premium accordingly. Individuals who use public transport regularly or have more than one vehicle benefit more from this type of insurance plan.
8. Avoid Unnecessary Add-Ons
Add-ons like engine protection, roadside assistance, and zero depreciation cover will add to your premium. Some add-ons are helpful for Mumbai roads, but check if you need them before adding them to your policy.
For instance, zero depreciation cover is a good idea if you own a new vehicle. But it might not be economical for an old car. Therefore, customising your vehicle insurance will help you avoid unnecessary costs and maximise your savings.
In a nutshell, saving money on car insurance in Mumbai is all about making wise decisions about which policy to purchase. From comparing quotes to maintaining a clean driving record and choosing only necessary add-ions, you can significantly lower your premium amount. With these tips, you can make the most of low-cost insurance without compromising coverage.
So, apply these tips now and save more on your insurance premium in a high-cost city like Mumbai.
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