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Can the insurance premium on my vehicle be reduced?

Insurance premiums can be reduced if you maintain a claims-free record. Insurers reward claims-free years with discounts on the succeeding year's premiums.

28 Nov 2007

A large part of your insurance premium cost is based on the Insured Declared Value (IDV) of your vehicle. If you maintain a claims-free record, you accumulate a bonus, which translate into discounts on policy renewal. Insurers reward policyholders for not making claims by providing a discount on the Own Damage part of the premium. Moreover, you could avail of discounts if you are a member of a recognized automobile association. A discount of up to Rs. 500 could be availed if you have installed an anti-theft device in your car that is approved by the Automotive Research Association of India.

You could also reduce your car insurance premium cost by opting for voluntary deductibles i.e. the client's option to bear a certain amount of loss from each claim.

See also:

Voluntary Deductibles and Compulsory Excesses

What is Malus?

What is No Claim Bonus?

What if I forget to renew my auto insurance on time?

Motor Insurance FAQs on Claims

Motor Insurance FAQs on Coverage

Motor Insurance FAQs on Cost, Premiums, Bonus, Discounts, Renewals