How To Conserve Premiums During Motor Insurance Policy Renewal?
Saving money is a necessity of life. Whether it is getting a concession on your restaurant bill or that movie in your favourite multiplex, we all enjoy it. So, when it comes to insurance plans, why skip checking on one? There are various hacks that help you save when buying a vehicle insurance policy. This article lists some of the commonly used and effective tips to save on your insurance premiums.
#1 Compare insurance plans
The first step to look for when renewing an insurance policy is comparing the available options. It doesn’t require much effort but skipping on this step will definitely cost you money. When you are renewing your insurance policy, it isn’t necessary you continue with your present insurance company. You have the freedom to switch to a different plan and even a different insurer. So, do not forget to compare the various plans that are on offer by insurers. Moreover, transferring your accrued benefits like no-claim bonus is a hassle-free experience and should be done.
#2 Check the policy features
Whether you are renewing a private insurance policy or a commercial vehicle insurance, it is essential you look for the policy features. These features need to be analysed at each renewal date to check its use. It may so happen that you no longer need a feature, but it adds to your policy’s premium. Dropping these unnecessary features from your policy can help you bring down the premium amount.
#3 Not waiting for the last moment
The adage, ‘a stitch in time save nine’ rightly states to ensure your policy is renewed on time. Timely renewal helps you enjoy policy benefits that are available due to continued coverage. These benefits included a reduction of premium too. On the other hand, if you miss on renewing your policy on time, you might have to pay for hiked premiums due to loss of policy benefits like the no-claim bonus.
#4 No-claim bonus
No-claim bonus is a monetary benefit that is allowed at time of insurance renewal for not making any claims in the previous policy tenure. If you are shifting your insurance plan, do not forget to obtain your NCB certificate from the previous insurer to avail these benefits with your new insurance company. NCB benefits offer a deduction in your premium starting from 20%, all the way upto 50% of the own-damage premium.
#5 Ensure you have read the fine print
Whether it is a first time policy purchase or an insurance renewal, do not forget to read the insurance terms and conditions. Any change or modification in these terms will help you stay afloat and switch to a different insurance company, if need be. Blindly buying a cheap insurance policy based on the price is not advisable as it can leave a grey area in your understanding. Therefore, ensure to thoroughly read the fine print to make a smart decision based on your understanding.
These are some ways how you can conserve your motor insurance premiums while not compromising on the protection it offers. Make use of these tips at your next renewal to get the best available deal at an affordable price.
