made any claim in the past year, you get an NCB. The good thing about this is that the bonus adds up every successive year. Let’s say you didn’t make any claim in the first year, you get a discount of around 20% on the basic premium. This figure can go up to 45% if you don’t make a claim for four consecutive years.
And it also pays to be careful about the car’s security. So, if your car has an ARAI-approved anti-theft device, then you stand to benefit from an additional discount, because then the insurance company deems that your car is less likely to be stolen.
Your profession is also likely to net you some discounts. For example, a public servant is likely to drive the car less than a businessman. Doctors, defence personnel and even teachers in government-owned schools are eligible for this low-risk insurance group. Another discount available is for the members of the regional automobile associations. All these discounts, if you are aware of them, can save you quite a bit of money.
Making a claim: The NCB is by far the biggest discount that the insurance company will give you. The fact that it adds up every year and couple this with the reducing IDV of the car, implies you pay successively less each year for insuring your car. So, claiming may up the premium you pay since you lose your NCB. Of course, you should always practice safe driving, but accidents do happen and making a claim may be the only way out.
But for minor accidents, not making a claim may prove beneficial, especially if there is no mechanical damage. It doesn’t cost much to remove a minor scratch using a rubbing compound or beat a minor dent back in shape. Instead, if you claim for damages, you end up losing your NCB.
Shop smart: Another way to save money on insurance is by not taking up the first offer made to you. Instead, it’s better to look around and search for alternatives. You will see that premium amounts vary from one insurance company to the other. If you bargain and ask for a lower quote and higher discounts, insurance companies are likely to give you one if you show enough interest. Go online and compare quotes from different companies and ask your insurance agent to match these or better them.
Most people assume that buying comprehensive