Paying high premiums on your motor insurance? Read this.

Paying high premiums on your motor insurance? Read this.

by 5paisa Research Team Last Updated: 2022-02-21T13:07:56+05:30

Motor insurance helps protect your wallets from burning. But as time passes, vehicle owners feel the increased burden of premiums. Read on to find out how to reduce the same.

Motor insurance is one such insurance that is necessary to have with the vehicle owner. Even though you shrug off having a comprehensive policy, still by law, it is mandatory to have at least a third-party motor insurance policy. However, having a comprehensive motor insurance policy helps protect your wallet from burning.

Having said that, inflation is a bitter truth that no one can ignore. This is one such factor that affects the insurance premiums that you pay. Therefore, it is always a pleasure to save some money and lower the burden on your pocket. With this intent, we have listed a few tips that you can consider to reduce the premium burden as a vehicle owner.

Secure your vehicle

We often try to buy vehicles with the best comfort and safety for which we are even ready to push our budget. However, sometimes we fail to invest in a better security system. With a proper security system in place, you can lower the risk of your car being stolen. Having installed certified anti-theft devices might help you lower premiums, as improving the vehicle’s security means reduction of probable risk from the insurer’s perspective.

Avoid over-enhancing your vehicle

If you are modifying an existing device or adding the new one, then there are chances that your insurance premium will rise significantly. This is because, from the point of view of the insurer, such modifications or additions either increase the risk of theft or accidents. The insurance premiums might drive higher depending upon the enhancements being made. Therefore, avoid making unnecessary enhancements to your vehicle as it will help you reduce your premiums considerably.

Opting for the right insured declared value

Insured Declared Value (IDV) is supposedly the approximate current market value of your vehicle. IDV is the maximum amount that your insurer would pay in case of a claim. Now setting the right IDV is important because this will affect the premiums. If you set your IDV high, then higher would be the premiums and vice versa. However, setting IDV lower though means lower premium, would also mean fewer benefits. And setting the higher one too might make no sense as the claim is made based on the situation not paid as a lumpsum IDV amount. 

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