How To Get The Best Deal On Motor Insurance

If you own a car, getting motor insurance is crucial. Here is how you can get the best deal when buying motor insurance. 

Buy Online 

Buying motor insurance online can definitely help save money. Buying it offline often involves additional operational costs, agent fees, and lack of comparison options, which can increase the cost. “When you purchase motor insurance online, you eliminate these intermediary costs and have direct access to better deals offered by insurance companies or online aggregators,” says Paras Pasricha, Head of Motor Insurance at Policybazaar, an insurance aggregator. 

Claim The No Claim Bonus 

You can renew the same motor insurance policy, or you can buy a policy from the same insurer. “It is important to check for the transfer of the no claim bonus (NCB) when renewing your motor insurance or switching to a new policy. The NCB is a reward for not making any claims during the policy term, and it can lead to a substantial discount on your premium. The good news is that the NCB is attached to the policyholder, not the vehicle,” says Rakesh Jain, CEO, Reliance General Insurance.

This means that it can be transferred when you buy a new motor insurance policy or even when you switch insurers, as long as you have proof of your previous NCB status.

Keep In Mind 

When it comes to managing motor insurance premiums, a few strategic choices can make a noticeable difference in cost-efficiency. First, it’s wise to be cautious about bundled deals. While they may seem convenient, bundled insurance packages often come with limitations on customization, reducing your ability to tailor coverage to your specific needs. Furthermore, these deals may include unnecessary add-ons, leading to higher premiums for coverage you might not even use. 

Not all add-ons provide the same value to every driver; for example, if you live in a flood-prone area, an engine protection add-on can be crucial to avoid expensive repairs in case of water damage. Similarly, opting for consumables coverage could help cover the cost of necessary maintenance items that wear down over time. Customising add-ons in this way ensures that you only pay for what’s truly beneficial, helping you optimise your premium without compromising on essential protection.

“Opt or a higher voluntary deductible can reduce premiums. However, it’s important to strike the right balance between reducing your premium and ensuring that the deductible amount is within your financial comfort zone in case of a claim,” says Pasricha.