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How to save money while renewing motor insurance

28 September 2015
What if we told you that you can save money where you never expected- while renewing your motor insurance?
 

Who doesn’t love saving money? Whether it is squeezing the last bit of toothpaste from the tube or standing in a long line to get a shared cab, we’ve all done our bit to save money wherever we can. What if we told you that you can save money where you never expected- while renewing your motor insurance?

Read on to know how a few simple steps can help you not only get a comprehensive coverage but also save a lot of money.

  1. Compare Policies
    It doesn’t take a lot of time and yet so many of us almost never do it. A big mistake that most people commit is that they renew their policy without much thought or comparison. While renewing motor insurance, you must go online and compare various policies and see what features you can add. The procedure is so simple and hassle-free with the advent of so many websites. Spending additional half an hour on comparing policies will prove helpful and save you money.
     
  2. Check the Features
    Always go through the features of the policy before you renew it. There might be some you no longer need or something that you might want to add to it. For example, you might be paying extra premium for personal accident cover of 10 lacs. If you already have personal accident insurance, you can remove this clause and pay less for the policy. Another such example would be Road Side Assistance (RSA). If Road Side Assistance is already being provided to you by your car’s manufacturer, you can skip RSA cover through the insurer and lower your premium.
     
  3. Don’t let the policy expire
    Do not wait for your existing policy to expire before you decide to renew. It is always advisable to renew it at least 45 days in advance. This way, if a price hike happens in that period, your price is locked in and you don’t have to pay the extra (hiked) amount.
     
  4. No Claim Bonus
    You are rewarded with a No claims bonus if you haven’t made any claims in the preceding year. If you are eligible for No claim bonus, don’t forget to claim it. This amount will be deducted from your overall quote and you’ll have to pay lesser premium. Over the years, No Claim Bonus can decrease the premium amount by up to around 50 percent.
     
  5. Always read the fine print
    Don’t blindly go for the cheapest policy available and never make assumptions about your policy. Go through it in detail and understand how your policy will cover you under different scenarios. For example, will you be covered if someone else was driving your car when it met with an accident? If you are renewing your policy online on an aggregator website, always remember to check the details on the website of the insurance company as well.
     
  6. Know the value of your car
    Calculating your vehicle’s value can save you from paying out large motor insurance premiums. Insurance experts suggest auto owners to calculate their car’s market value before renewing their policies. When vehicle owner knows the depreciated value of the car, he or she can easily negotiate with his or her insurance service provider over the premium amount and can save a lot.
 
 
 

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