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How to Get a Better Premium on Car Insurance Renewal in India?

Submitted by admin on May 3rd, 2025

People must renew their car insurance each year because this obligation along with financial protection. Most policyholders make the habit of renewing their insurance with their current provider without checking for more cost-effective options. A combination of knowledge and wise choices enables Indian customers to secure enhanced premiums when renewing their car insurance policies.

Compare Policies Online

The mistake most car owners commit is their failure to analyze different insurance policies available to them. You can easily inspect premiums and coverage options for insurance together with benefits on different aggregator websites and company sites during brief online searches. The insurance aggregators let you check the best deals on third-party or comprehensive coverage so make sure to use them both types of plans.

Avoid Claims for Minor Damages

You should settle minor repairs independently through your own funds instead of filing an insurance claim. Using your No Claim Bonus comes with a cost since filing each claim will result in its forfeiture up until you reach five consecutive claim-free years. Loss of NCB leads to reduced premium discounts by up to 50%. Your premium renewal rate reduces when you protect your no-claim bonus (NCB).

Install Anti-Theft Devices

Insurance companies operating in India provide premium price reductions to car owners who equip their vehicles with Automotive Research Association of India (ARAI)-approving anti-theft security devices. The safety features installed in your car provide higher protection for your vehicle and lower insurance risks.

Opt for Voluntary Deductibles

When you pay expenses out of pocket as part of your insurance claims you are making a voluntary deductible agreement. A higher selected voluntary deductible enables you to obtain reduced premium costs. Select a deductible amount which will not empty your financial resources when you need to file a claim.

Choose the Right Add-Ons Wisely

The premium will increase when you add engine protection or zero depreciation insurance with roadside assistance as optional features. Select extra coverage only if it matches your vehicle’s characteristics as well as local factors and how you drive it. Zero-dep provides better value to owners of recently purchased vehicles.

Renew Before the Policy Lapses

If your policy lapses, you lose out on NCB and may be required to get your car inspected again. Always renew your car insurance before the expiry date to maintain continuity and avoid higher premiums.

Maintain a Clean Driving Record

A history of safe driving with no major accidents or traffic violations works in your favour. Some insurers offer telematics-based plans or track your driving behaviour, rewarding responsible drivers with lower premiums.

Avoid Modifications That Increase Risk

Fancy exhausts, engine upgrades, or aesthetic modifications may increase your car’s risk profile, leading to higher premiums. Always declare modifications honestly; hiding them may result in claim rejection.

Consider Long-Term Policies

Some insurers offer long-term car insurance (3-year third-party plans for new cars, as mandated by IRDAI). These come with fixed premiums for the tenure and protect against annual price hikes.

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