How to Make Car Insurance Cost-Effective

Published By: Business Today

Published Date: 31-05-2022

As vehicle prices climb, car insurance premiums are following suit, adding pressure to household budgets. Fortunately, several strategies can help reduce these costs without sacrificing necessary coverage. Timely premium payments preserve continuous benefits that would otherwise be lost. The No Claim Bonus (NCB) system rewards safe driving with substantial discounts—beginning at 20% after one claim-free year and increasing to 50% after five years. This valuable discount can even be transferred when purchasing a new vehicle.

When selecting coverage, focus on what truly matters for your specific situation. Choose add-ons strategically based on your driving habits and vehicle usage patterns rather than opting for every available option. Various discounts can further reduce costs, including those for anti-theft devices and automobile association memberships. Setting an appropriate Insured Declared Value (IDV) ensures adequate protection while keeping premiums reasonable. Some insurers also offer lower rates for higher voluntary deductibles, which can be worthwhile if you're a confident, careful driver with emergency savings.