How to Save Money on Car Insurance Policy Renewal: Your Complete Guide

In India, It is essential to have car insurance for every individual who owns a car as per Motor Vehicles Act 1988. Therefore, every driver must keep in mind at least to have a third-party car insurance policy when planning a car. Although purchasing car insurance or online car policy renewal seems an easy peasy option, an owner must remember that it can often be a significant expense, especially if you renew your policy yearly.

So it is essential to smartly plan your car insurance renewal to pay low car insurance premiums without sacrificing coverage. This article will guide you in saving money on your car insurance policy renewal. So let us understand how to get cheap car insurance.

What Is The Best Way To Renew Car Insurance?

  • Compare Insurance Online

You can easily do your car insurance renewal online, as insurance aggregators give you that perfect platform for doing so. But first, you must visit a reliable insurer’s website and check all available online plans. Study and review the listed insurance plan, as all comparative aspects are available online. Then match the one closest to your requirement; the ideal insurance for a car should be able to give adequate safe and competitive cost.

  • Be Calculative with Regard to Your IDV

An IDV is a maximum sum assured for your motor; an Insured Declared Value is computed by adjusting the market value of your vehicle minus depreciation. This amount is paid to you if your vehicle is damaged beyond repair (i.e. the case of total loss) or stolen. IDV is harmonised well with the premium. If your IDV is higher, your premium will also be higher. Therefore it is essential to be smart about your IDV and compute it correctly and plan policy such that it helps you save on policy without a high premium.

  • Save through accumulated NCB.

The car insurance company rewards responsible drivers who have kept their cars safe for a said policy year. This reward comes in the form of NCB, a benefit on the premium paid during car insurance renewal. If no claim is made during the year, the driver is entitled to an NCB, which can go up to even 50 per cent of the annual premium. It is a good way to get discounts on your car insurance policy renewal.

  • Opt for voluntary deductibles.

A voluntary deductible is a good option where the policyholder voluntarily signifies a said amount which he shall bear from his pocket & the insurer shall bear the remaining amount. Therefore in case of a claim, the policyholder shall pay a specific pocket from his pocket & remaining shall be paid by the insurance company. Such practice allows a discount on the premium, which helps to save.

  • Install safety measures like anti-theft devices

Improving the safety of your car always helps. When you install any anti-theft device in your car, you can get discounted premiums as your vehicle evolves and gets less prone to theft.

  • Changing the policy or insurer

If you are dissatisfied with your existing insurer, you can look for a new one at the time of renewing your policy. You can also change the scope and extent of the coverage based on your evolving needs during this period. If you have a good track record, the new company may offer you an ample discount for getting insurance with them.

  • Do your car Insurance renewal on time

Renewal of your car insurance ensures the safety of your No claim bonus. Also, timely and beforehand renewal allows a significant discount due to a healthy track record.

  • Get a membership of the Automobiles Association of India or Western India Automobile

A membership of the Automobiles Association of India or Western India Automobile can come in handy as it allows you a discount on the premium. The insurance company allows significant premium discounts if you have a membership of AAl or WIAA.


With smart measures, you can actively save on your car insurance renewal process. It is best to ensure car insurance renewal before the expiry date. Many insurance companies offer a grace period to help car owners keep their NCB benefits and renew their policies. But it is recommended not to wait until the grace period and complete the car insurance renewal process before that. Good Luck!


People Also Ask

How can I reduce my car insurance premiums when renewing?

  1. Shop around and compare quotes
  2. Increase your deductible
  3. Maintain a good driving record
  4. Take advantage of discounts by being a member of specific organisations.
  5. Pick a car with a lower insurance risk profile.
  6. Install safety features in your car.
  7. Pay your premiums annually instead of monthly.

What are the details required to renew the insurance policy?

  1. Recent policy document
  2. Vehicle registration certificate (RC) or smart card
  3. Driving licence
  4. No Claim Bonus (NCB) certificate, if applicable
  5. Pollution Under Control (PUC) certificate
  6. Previous insurance policy details, if you are switching insurance providers
  7. Proof of address
  8. Payment for the renewal premium

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