Just bought a new car? Unlock these 8 smart car insurance tricks
With the festive season leading to a spike in new car sales, buyers today are dealing with not just showroom and specifications but also the car insurance landscape that often gets little or no focus. The showroom extravaganza may seem like the star of the show, but it is the insurance policy that can really make or break your savings and ensure you have stress-free years ahead of you.
Car insurance is not only a smart move, but it becomes the one thing that matters most as premiums rise and roads get filled with more traffic. So here are some handy car insurance hacks that you must not miss if you want to save your hard-earned money and avoid some common mistakes.
Compare Before You Commit
One of the most common mistakes buyers make is blindly choosing the insurance policy offered by the car dealer. While convenient, this bundled policy often comes at a higher cost and with limited customisation. Experts recommend using online insurance aggregator platforms to compare premiums, inclusions, and claim settlement ratios before making a decision.
Insurers often provide discounts or enhanced features on direct purchases made through their websites or verified brokers. A quick online comparison can result in savings of up to 20% on premiums for the same coverage.
Choose the Right Add-Ons
A basic comprehensive policy might not be enough, whether you are buying a car or bike insurance, especially in today's unpredictable road conditions. However, overloading your policy with unnecessary add-ons can inflate your premium. The trick is to choose smart.
Add-ons like Zero Depreciation Cover, Engine Protection, and Return to Invoice are particularly valuable for new vehicles. Zero Depreciation ensures you get the full value of replaced parts without depreciation deductions, while Engine Protection is vital during monsoons or for cars in flood-prone areas. Return to Invoice bridges the gap between your car's insured value and its invoice price in the event of total loss or theft—ideal for high-value purchases.
Opt for a Higher Voluntary Deductible
Insurance professionals advise confident drivers to consider choosing a higher voluntary deductible, the portion of a claim the insured agrees to pay themselves. Choosing a higher deductible helps you save on car insurance premiums.
Install Anti-Theft Devices
Insurance companies favour security. Fitting your car with anti-theft devices approved by the Automotive Research Association of India (ARAI) not only protects your vehicle but also earns you a premium discount of up to 5%.
Devices such as GPS trackers, steering locks, gear locks, and electronic immobilisers not only deter theft but also improve your chances during claim settlements in the unfortunate event of a loss. Some policies even offer preferential claim processing for insured vehicles with such fittings.
Take Advantage of the No Claim Bonus (NCB)
Transferring your No Claim Bonus (NCB) from an old policy to your new one remains one of the simplest ways to save, yet it continues to be widely ignored.
'I've met dozens of customers who didn't know they could retain their NCB,' said Ravi Mehta, who manages a multi-brand car showroom.
'It's heart-breaking when someone with five years of no-claim history ends up paying a full premium simply due to ignorance.'
Avoid Small Claims
Though it may seem logical to claim insurance for every scratch and dent, experts advise against it.
'One dent, one claim—and you lose the bonus you've built over years,' explained Mehta.
'Paying for minor damages out of pocket keeps your record clean and helps you save more over time.'
Review the Insured Declared Value
The Insured Declared Value, or IDV, is the maximum amount your insurer will pay if your car is stolen or completely damaged beyond repair. While some policies offer the option to reduce IDV to lower the premium, doing so means compromising your payout in case of a total loss.
Go Paperless and Pay Smart
Several insurers now offer instant policy issuance through paperless KYC and digital payment methods. Opting for annual payments instead of EMIs or short-term coverage often comes with additional discounts.
Also, using credit cards with reward schemes or cashback offers can further enhance your savings on the purchase of car insurance.
Final Thoughts
With increasing digitisation, buying car insurance has never been easier or more customisable. Yet, it remains one of the most under-optimised areas of vehicle ownership. By understanding your policy, comparing options, and applying a few smart strategies, you can enjoy robust protection without burning a hole in your wallet.
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