Tips for Lowering Car Insurance Premiums with Tata AIG

Tata AIG car insurance is designed specifically to cater to customers' needs, offering holistic coverage, prompt online facility, and unrivalled customer service at an affordable premium

For some, owning a car may be a necessity; for some, it may be a luxury. But undoubtedly, it acts as a convenience for all. However, sometimes, this convenience may come at a price. You must insure your car with at least a third-party car insurance policy according to the law or a comprehensive car insurance policy if you desire extensive coverage. 

While having a four-wheeler insurance policy is a win-win situation as it mitigates the risk and helps in abiding by the rules, the car insurance premium can be a matter of concern. 

Hence, choosing an insurance provider that offers extensive coverage at an affordable cost becomes imperative. Tata AIG, one of India's leading insurance providers, is known not only for its innovative and holistic product offerings and commendable customer service but also for cost-efficient insurance plans. Since insurance premiums are subjective, there are ways through which you can reduce your premium amounts. 

In the article below, we list some tips from Tata AIG to reduce your car insurance premium. But before we get started, let us know the factors that affect your premium.

Key Factors Affecting Four-Wheeler Insurance Premium

Apart from policy features, benefits, coverage and other factors, a car insurance premium remains a major factor when making a purchase decision. You must be aware of these factors to ensure you buy the best-suited yet low-premium car insurance.

The premium of car insurance is determined by several factors, as mentioned below:

• Age of the car

• Geographical location

• Make, model, and variant of the car

• The type of cover selected (third-party, own car damage, comprehensive, etc.)

• Add-on selected

• Claim history (No-Claim Bonus discount)

• Insured Declared Value (IDV)

• Modifications done to the car

• Anti-theft devices installed in the car

Tips to Lower Your Car Insurance Premium

As we discussed earlier, car insurance premiums depend on various factors. Thus, no two similar cars are likely to have the same premium. Since we always aim to choose the best car insurance policy at an affordable price, the tips below can help prevent burning a hole in your pocket due to high premium amounts.

Compare car insurance premiums

The best way to buy the right four-wheeler insurance and get the best deal is to compare car insurance based on policy features, benefits, and premiums. You can also use Tata AIG’s online car insurance premium calculator to calculate the premium payable before you buy car insurance.

Opt for higher deductibles

Deductibles are an essential aspect of four-wheeler insurance. It is an amount you decide to pay in case of a claim. For example, if your voluntary deductible is 20% and your claim amount comes to ₹10,000, you will have to pay ₹2,000, and the rest ₹8,000 will be paid by Tata AIG. The higher the deductible, the lower the premium, and vice versa.

Choose add-ons carefully

Although enhancing your coverage is great, you must remember it comes at a cost. Tata AIG car insurance offers 12 unique add-ons that provide extra protection and help you customise your plan. But, it would be best to choose the add-on wisely as more add-ons would mean a higher premium.

Take advantage of No Claim Bonus

No Claim Bonus is a reward that you earn from the insurer for every claim-free year. This reward is given as a discount on your next year's premium. No Claim Bonus discount starts at 20% for a one claim-free year. You can earn a maximum of 50% discount using NCB. To avail of an NCB discount, ensure you avoid raising minor claims. This will keep your NCB intact and lower the premium amounts.

Moreover, NCB is transferable. For example, if you buy a new car and sell the existing one, your NCB can be transferred from your old car to your new one.

Opt for third-party insurance for older cars

A comprehensive car insurance plan is often recommended as it offers holistic coverage. However, if your car is old and is not much in use, or you plan to sell it soon, consider opting for only a third-party mandatory insurance policy. 

Since the cost of a premium from a third-party policy is considerably lower than a comprehensive policy, you can save quite a bit. However, if you own a new or an expensive car, ensure you purchase comprehensive car insurance.

Avoid unnecessary car modifications

Making unnecessary and major car modifications may cost a higher premium. These cars are then equipped with added features, increasing their overall value. Although this may excite many, it must be remembered that insurance companies usually charge a higher premium for such cars. Thus, for low-premium car insurance, avoid such modifications

Install anti-theft devices

The four-wheeler insurance premium you pay reflects the risk the insurance company takes. Thus, low-premium car insurance would mean the insurance company considers lower risk and vice versa. By installing anti-theft devices like anti-theft alarms, CCTV cameras in parking areas, etc., you reduce the risk on your vehicle, thereby reducing the premium.

Renew your policy on time

Having a continued car insurance policy is beneficial in many ways. You not only adhere to the laws and rules but renewing the policy on time can also be economically viable. Failure to renew on time may lead to a lapse of your accumulated discounts (NCB discount), and you may also have to pay an additional fee to get it reinstated. Tata AIG offers a quick and hassle-free online renewal process.

Buy car insurance online

As mentioned earlier, buying car insurance online offers several benefits. Apart from ease of comparing, purchasing, renewing or calculating premiums, the online facility also enables you to experience hassle-free processes, shorter turnaround time, and paperless procedures. 

Tata AIG offers exclusive discounts - up to 75% off - to encourage customers to buy car insurance online. These promotions and discounts lead to significant cost savings.

Wrapping Up

Buying four-wheeler insurance is important and mandatory, but it can also be expensive for many. Following the above tips and making wise decisions, you can get low-premium car insurance from a reputed provider. 

Tata AIG car insurance is designed specifically to cater to customers' needs, offering holistic coverage, prompt online facility, and unrivalled customer service at an affordable premium.