How to Save Your Car Insurance Premium

Samiksha Bagal
Nov 10
4 min read

Updated: Nov 28

Car Insurance Premium
Maintain a Clean Driving Record
Use No Claim Bonus (NCB)
Install ARAI-Approved Anti-Theft Devices
Choose Voluntary Deductibles
Select Only Essential Add-Ons
Renew Policy on Time
Compare Policies Before Buying
Choose Long-Term Insurance Policies
Avoid Small Claims
FAQs

Car Insurance Premium

Understanding how to save Car Insurance Premium is essential for every vehicle owner. While insurance protects your car from financial losses, the car insurance premium does not have to be high. With strategic planning, responsible driving habits, and smart policy decisions, you can significantly save insurance cost and enjoy better motor insurance savings. Knowing the right methods helps you understand how to save car insurance premium in India without reducing coverage quality.

Maintain a Clean Driving Record

A clean driving history directly reduces your Car Insurance Premium. Insurers reward safe drivers with better pricing.

A good record means:

No traffic violations
No rash driving reports
No frequent claims

This is one of the simplest ways to lower car insurance premium.

Use No Claim Bonus (NCB)

NCB is the biggest tool to reduce car insurance premium during renewal.

You earn NCB when:

You don’t make any claims in a policy year
Your NCB grows each year up to 50%
Your NCB can be transferred to a new car

This significantly reduces the own-damage part of the car insurance premium and helps with motor insurance savings.

Install ARAI-Approved Anti-Theft Devices

Devices like:

Engine immobilizers
Steering locks
GPS trackers
Anti-theft alarms

reduce vehicle theft risk. Insurers offer discounts on car insurance premium for ARAI-certified devices. This is one of the easiest tips to reduce motor insurance cost.

Choose Voluntary Deductibles

When you agree to pay a part of the claim voluntarily:

Higher voluntary deductible → Lower Car Insurance Premium

This method works best for experienced drivers and helps in how to save money on car insurance renewal.

Select Only Essential Add-Ons

Add-ons increase your car insurance premium. Choose only what you truly need.

Recommended Add-ons:

Zero Depreciation
Engine Protection
Roadside Assistance

Avoid unnecessary Add-ons:

Daily allowance
Key replacement (only if required)

Smart selection helps save insurance cost while still maintaining good protection.

Renew Policy on Time

Timely renewal prevents:

Loss of NCB
Higher premium
Mandatory inspection

Renewing on time is one of the simplest ways to lower car insurance premium and maintain your savings.

Compare Policies Before Buying

Premiums vary across insurers.

Compare:

IDV
Add-ons
Claim settlement ratio
Network garage availability

Using comparisons ensures you choose a policy that offers maximum motor insurance savings and reduced car insurance premium.

Choose Long-Term Insurance Policies

Long-term (2–3-year) policies offer:

Lower overall car insurance premium
Protection from yearly rate hikes
Continuous coverage

Ideal for new car owners looking to save insurance cost long-term.

Avoid Small Claims

Avoid filing claims for:

Small dents
Minor scratches
Low-cost repairs

This helps preserve your NCB and significantly reduces future car insurance premium, especially during renewal.

Learning how to save car insurance premium in India allows car owners to enjoy high-quality coverage at affordable rates. By maintaining a clean record, leveraging NCB, choosing essential add-ons, and comparing policies, you can achieve maximum motor insurance savings. These practical strategies help you reduce car insurance premium year after year without compromising on safety or protection.

FAQs

1. How can I reduce my Car Insurance Premium during renewal?

You can lower your Car Insurance Premium by maintaining a clean driving record, renewing on time, using No Claim Bonus (NCB), and removing unnecessary add-ons. These practical steps are some of the best ways to lower car insurance premium without affecting coverage quality.

Key actions:

Keep NCB intact
Compare policies
Select only essential add-ons
Opt for voluntary deductibles

2. What factors increase the Car Insurance Premium in India?

Several factors can increase your car insurance premium, including frequent claims, low NCB, high-value add-ons, risky driving zones, and expensive spare parts. Understanding these factors helps you identify tips to reduce motor insurance cost and plan better.

Factors include:

Car age & IDV
Driver history
Location (metro cities cost more)
Add-ons & claim history

3. Does installing anti-theft devices reduce Car Insurance Premium?

Yes. Installing ARAI-approved anti-theft devices can significantly reduce your Car Insurance Premium because they lower the risk of theft. Insurers reward this extra safety measure, making it one of the simplest ways to lower car insurance premium.

Helpful devices:

GPS tracker
Engine immobilizer
Steering lock
Anti-theft alarm system

4. Is it better to avoid small claims to save Car Insurance Premium?

Absolutely. Filing small claims may reduce your No Claim Bonus (NCB), which leads to a higher car insurance premium during the next renewal. Avoiding minor claims is one of the top tips to reduce motor insurance cost and helps maintain your long-term discount.

Avoid claims for:

Minor dents
Small scratches
Low-cost repairs

5. How does comparing policies help save money on Car Insurance Premium?

Comparing policies is one of the smartest ways to save on Car Insurance Premium because every insurer offers different IDV, add-ons, discounts, and pricing models. This helps you discover how to save on premium car insurance in India more effectively.

Compare based on:

Premium vs. coverage
Insurer’s claim settlement ratio
Quality of add-ons
Network garage availability