Congratulations on finally purchasing your dream car! Your immediate next step is to buy a car insurance policy. Your car is a precious purchase, and you need to safeguard it from all the perils. Moreover, as per the Motor Vehicles Act, 1988, the Indian Government has made it mandatory for car owners to have third-party car insurance. 

So, once you have purchased a car insurance policy, here are some ways you can keep your insurance premiums in check –  

1. Research well 

Be careful while choosing your car insurance. Make research your strong suit and compare various car insurance policies with all their benefits and drawbacks. Tick them against the price being charged by the car insurance providers, and also check the premium payment methods, claim settlement ratio, the reputation of the car companies, and so on. You can get both comprehensive and third party car insurance online; so be thorough with the research and comparison and choose a car insurance policy carefully. 

2. Get the deductibles

If you want to reduce your motor insurance premium significantly, always opt for deductibles. You can opt for deductibles at the time you make a motor insurance claim, in the form of an extra expense payable. For instance, if you go for a deductible of INR 5,000, and you have a repair expense of INR 10,000, then you will be required to pay only the initial amount of INR 5,000 for it, and the motor insurance company will pay for the rest of it. Deductibles do lower your car insurance premium but make sure you only opt for what you can afford conveniently. 

3. Avail the NCB 

No claim bonus or NCB is an amount that you receive as an award if you didn’t make any motor insurance claims in the previous year. This bonus enables you to become eligible for discounts at the time of the next car insurance renewal. You may have to pay a lower insurance premium in the following year because of the benefit that the non-claim bonus gives you. If you don’t make any motor insurance claims over one year or more, then you get discounts between 20 to 50 percent. Moreover, this discount is available even if you switch car insurance providers at the time of your car insurance renewal. And if you want a higher NCB in the long run, here is a pro tip – avoid filing for small car insurance claims. 

4. Renew motor insurance policy timely 

If you wish to continue to enjoy benefits and discounts then make sure that you renew your motor insurance policy on time, as it can lapse otherwise. Failing to renew on time can make you lose benefits accumulated on time such as the NCB benefit, and as a result, you might have to pay higher amounts of motor insurance premiums. You can update your contact details with the motor insurance company so that you get car insurance renewal alerts and notifications at the right time. 

Additionally, you can enjoy discounts by choosing higher policy tenure, installing ant-theft devices and becoming a member of some automobile associations such as the Automobile Association of India and Western India Automobile Association. Also, check the premiums with the help of a car insurance premium calculator.