online insurance: Do you renew your car or home insurance online? Know 6 ways to save money

online insurance: 6 ways to save money on your car or home insurance

online insurance: Insuring your car and home is an important financial investment that protects you from unexpected losses. However, insurance premiums can often be costly. Therefore, it’s crucial to adopt strategies to save money. Here are some suggestions that can help you reduce your spending on car and home insurance: online insurance

1. Study the Market and Compare Prices: online insurance

There can be significant differences in the rates and coverage offered by different insurance companies. Therefore, it’s important to study the offerings of various insurance companies and compare them. You can use online insurance aggregator websites, which will help you compare the offerings of different insurance companies. This way, you can choose the best and most affordable option.

2. Choose Higher Deductibles and Excess: online insurance

Opting for higher deductibles and excess will lower your premium. However, keep in mind that if you make a claim, you will have to pay the higher deductible and excess amount. Therefore, adopt a balanced approach and choose deductibles and excess based on your financial situation. online insurance

3. Take Advantage of No-Claim Bonus:

If you have been claim-free for several years, insurance companies will offer you a no-claim bonus. This provides a discount on the premium. Take advantage of such discounts and reduce your premium. online insurance

4. Choose Bundle Policies:

If you insure both your car and home with the same insurance company, you may be eligible for a discount on a bundled policy. This will reduce your overall premium. online insurance

5. Be a Loyal Customer:

If you have been with an insurance company for a long time, ask them for a loyal customer discount. Many insurance companies offer premium discounts to their old and loyal customers. online insurance

6. Utilize Security Features:

Adding security features to your car or home, such as anti-theft systems, smoke alarms, etc., can help reduce your premium. Insurance companies consider the presence of these features as risk-reducing, and thus offer discounts on premiums. online insurance

By following these suggestions, you can reduce your expenditure on car and home insurance and increase your savings. However, keep in mind that price is not everything. You should also consider adequate coverage and service quality. Adopt a balanced approach that meets both your needs and budget.

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How to avail No Claim Bonus?

For Car Insurance:

Make sure you renew your car insurance policy before the expiry date to maintain the NCB continuity. Any lapse in renewing the policy can lead to the loss of the accumulated NCB. You are eligible for the NCB if you do not make any claim during the policy period. The NCB percentage typically increases with each claim-free year, up to a specified maximum limit set by the insurer. At the time of renewal, you may need to provide a proof of the NCB from your previous insurer. This can be in the form of a renewal notice or NCB reserve letter. online insurance

If you are switching insurers, you can transfer the accumulated NCB from your old policy to the new one. The new insurer will typically ask for the NCB proof from the previous insurer. The NCB discount varies across insurers but usually ranges from 20% to 50% on the Own Damage premium for each claim-free year. online insurance

For Home Insurance:

Similar to car insurance, timely renewal of your home insurance policy is crucial to retain the NCB benefits. You earn the NCB by not making any claims during the policy period. At renewal, furnish the NCB proof from your previous policy to the insurer. The NCB discount on home insurance premiums can range from 10% to 50%, depending on the insurer and the claim-free years. online insurance

It’s important to note that the NCB is applicable only on the Own Damage (for car insurance) or building/contents cover (for home insurance) premium. The NCB is not applicable on third-party liability premiums or add-on covers. Additionally, making a claim during the policy year will typically lead to the loss of the accumulated NCB. online insurance

How to club the policy for additional savings?

Clubbing or bundling insurance policies can save you extra money on premiums.

Many insurers offer package policies that combine car and home insurance under a single plan. By purchasing a packaged product, you can often get a discounted premium rate compared to purchasing individual policies. If you already have a car or home insurance policy with an insurer, contact them and inquire about bundle discounts. Many insurers offer loyalty benefits and discounted rates when you purchase multiple policies from them. online insurance

When you express interest in bundling policies, insurers are often willing to negotiate and offer better rates. Use this opportunity to bargain for greater discounts by comparing quotes from multiple insurers. To get the best bundled rates, provide the insurer with accurate and complete information about your car and home. This will help them accurately assess the risk and offer the most competitive premium. online insurance

While bundling, you can also explore adding additional coverage such as personal accident cover, equipment cover, or any other relevant add-on that suits your needs. It may be more cost effective to purchase them as part of a package. Before finalizing a bundled policy, carefully review the terms and conditions, inclusions, exclusions and any sub-limits to ensure you are getting adequate coverage for both your car and home. Once you have a bundled policy, make sure to renew both the car and home insurance components together to continue enjoying the discount benefits. online insurance

By bundling your car and home insurance policies together, you can typically save anywhere between 5% to 25% on the total premium, depending on the insurer and the specific policies you choose. However, remember to strike a balance between cost savings and adequate coverage for your needs.

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