Car Insurance Renewal Coming Up? 6 Smart Tips to Save Big

 Are you looking to renew your car insurance policy soon? While renewing car insurance might seem straightforward, making smart choices can help you save a significant amount on premiums.  You can renew your policy with some research and planning while getting optimal coverage. Discover six tips to get the best deal when your car insurance renewal date rolls around.

Six Tips to Save Money When Renewing Your Car Insurance

1. Review IDV and Enhance It If Needed

The Insured Declared Value (IDV) is the maximum sum insured fixed for your car as per its manufacturer's listed selling price and age. The higher your IDV, the higher your car's coverage and claims settlement amount will be. Having adequate IDV to avoid underinsurance and lower claim settlements is crucial. Review your IDV well in advance and enhance it if needed to maximise policy benefits. It will barely increase premiums but largely boost your coverage.

2. Modify Voluntary Deductible 

A deductible is the part of a claim amount you must bear out of your pocket during claims. A higher deductible leads to lower premiums. Modify your deductible at renewal to strike the right balance between premium outgo and desired coverage. For instance, you can increase your deductible if your car's condition is good or lower it if you wish to reduce your share of claim expenses.

3. Add Value-Added Covers or Add-Ons

Add-ons or riders offer enhanced benefits over and above the basic own damage and third party covers. By paying a little additional premium, you can opt for covers like zero depreciation, engine protector, NCB (No claim bonus) protection, etc. These add-ons are quite useful not just for car insurance but also for bike insurance policies. Evaluate your needs and identify which add-ons can add maximum value. For instance, an engine protector makes sense if your car runs in water-logged areas frequently. Add relevant riders to boost your coverage.

4. Maintain/ Enhance No Claim Bonus 

No Claim Bonus (NCB) offers attractive discounts on your premium if you don't make any claims during the policy term. The discounts can go as high as 50% for claim-free durations of 5 years. It pays not to file small claims and maintain your NCB. You can also opt for NCB protection cover to safeguard your NCB even if you make a claim. Maintaining a high NCB helps keep premiums low.

5. Install Anti-Theft Devices

Insuring cars fitted with ARAI-approved anti-theft devices entitles you to attractive discounts on premiums. Devices like GPS, engine immobilisers, vehicle tracking systems, etc, help discourage thefts and strengthen security. Therefore, install good-quality anti-theft equipment before your renewal to avail of discounts. It directly rewards you for enhancing your car's safety. Be sure to furnish related invoices and certificates to your insurer.

6. Compare Quotes Across Insurers

An effective way to save money while renewing your car insurance is to compare online quotes across different insurers thoroughly – it allows you to make an informed decision by evaluating parameters like premium rates, claim settlement ratios, network of garages, add-ons & discounts, customer ratings and more.

Instead of just comparing premium prices, run comprehensive comparisons and look at the total cost of ownership, incl. all fees/charges, to identify the most optimal insurer. 

Conclusion

The above six tips will prove invaluable to save money when your car insurance renewal date arrives. Be proactive and smart; you can easily reduce your premium outgo without compromising coverage. Follow aspects like NCB, deductibles, add-ons, etc., closely and make changes to optimise your policy. Investing a little time doing research and comparing quotes will go a long way to help you maximise savings. Make renewal hassle-free and pocket-friendly with these clever tips.