9 Car Insurance Secrets That Your Insurer Won't Tell You

While motor insurance companies offer the necessary protection for your car, there are several hidden aspects they may not disclose upfront. Here are some secrets of car insurance that your insurer won't tell you, but knowing them could help you save significantly on your car insurance premiums.

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Car Insurance Secrets to Save on Your Premium Costs

1. Secret 1: Importance of Make & Model in Car Insurance

   The make & model of your car directly impacts your insurance costs. The higher a car's market value, the costlier is its insurance premium. Thus, luxury and sports cars incur higher insurance premiums due to their expensive repairs and spare parts. In case you're planning to buy new car insurance, then you must keep this point in mind and feel free to ask the insurance provider about it.

2. Secret 2: Paying for Minor Claims Helps Reduce Renewal Premium

   Not all repairs need to go through insurance. You can get some minor damages repaired at a lower cost by paying out-of-pocket, which helps you get NCB in car insurance. NCB (No Claim Bonus) is a discount on your renewal premium the insurer provides you if you do not raise any claim during the policy tenure. Raising a claim for small repairs resets your NCB to zero, and you will end up paying a higher insurance premium.

3. Secret 3: Car Insurance Comparison is the Key

   One of the easiest ways to save insurance premium costs is to compare car insurance policies offered by different insurers. Insurance companies have different ways to evaluate risks based on which they offer coverage & benefits and decide the premium prices. You can utilize online car insurance comparison tools to find the best coverage as per your requirements and budget.

4. Secret 4: Your Driving History Affects Car Insurance Premiums

   Avoiding traffic violations and maintaining an excellent driving record can help you save on your premium. This is because a history of accidents and traffic violations implies increased risks for insurers. Hence, by following safe driving habits, you can keep your car insurance premium low, as many insurers offer discounts for responsible driving.

5. Secret 5: Choosing a Higher Deductible Can Help You Achieve Savings on Premium

   A deductible is an amount you agree to pay before your insurance coverage applies to a claim. Opting for a higher voluntary deductible implies a lower risk for the insurer; thus, the insurer charges you a lesser premium. However, you should choose an appropriate deductible amount you can comfortably pay.

6. Secret 6 Installing an Anti-Theft Device Can Decrease Your Premium

   Another way to save on your car insurance premium is to install anti-theft devices, such as an alarm system, GPS tracker, etc. This reduces the risk of vehicle theft and reassures your insurance provider. You should, however, note that this discount is valid only if you have installed an ARAI-approved devices.

7. Secret 7: You'll Lose Your NCB If You Don't Renew Your Policy Before Expiry

   As learned above, when you don't raise a claim during your policy tenure, your insurer rewards you with NCB. If you don't renew your car insurance policy on time or within 90 days of its expiry, you will lose your NCB benefits.

8. Secret 8: Car Modifications Can Increase Your Premium Costs

   If you have made any modifications to your car, such as engine or mechanical upgrades, interior or exterior accessories, or wheel enhancements, it will increase your insurance premium. This is because such modifications alter the car's value & safety, resulting in higher risks of accidents or expensive repair/part replacement, consequently increasing insurance premiums.

9. Secret 9: You Might Be Paying for Unnecessary Add-ons

   Motor insurance policies often include car insurance add-ons like roadside assistance, consumables, etc., which you may not even require. Hence, reviewing your policy documents and removing any unnecessary add-on covers can help you save on your insurance premium.

Wrapping Up

A car insurance policy is an essential financial safety net in case you suffer an unfortunate accident. Whether paying for third party liabilities or repairing your damaged car, your insurer covers these costs based on the type of policy coverage you have opted for. Thoroughly understanding your policy terms & conditions can help you choose the right car insurance policy and achieve significant savings on premiums over time. It is always ideal to compare car insurance quotes, review coverage, features, and benefits, and then make an informed choice.