Types of Car Insurance Discounts That Every Car Owner Should Know

While renewing car insurance, most policyholders stay loyal to their old insurer. This tendency often causes them to miss out on specific car insurance discounts that come as add-on coverages. 

Nowadays, when too many options are in the market, you should look for innovative ways to reduce the premium amount. 

We suggest you continue reading if you are keen to learn the different types of auto insurance discounts.

Below, you will see several discounts that help you purchase the best-suited insurance for your car at a competitive price.

1. Voluntary Deductibles

Deductibles contribute to an amount that must be compensated by the policyholder at the time of claiming. Generally, all car insurance policies have voluntary and compulsory deductibles. 

Besides the compulsory deductible, if you opt to add substantial voluntary deductibles, it automatically reduces the premium. This strategy involves risk as you may have to bear more considerable expenses in case of an accident claim in the future.

2. No-Claim Bonus (NCB)

NCB is the most common discount on car insurance offered by your existing insurer for not filing claims during the earlier terms. You can carry forward the no-claim bonus after owning a new car. It is a special provision that rewards the judicious car handling of a policyholder. 

Typically, adding the NCB can result in a drop in the premium amount by almost 20%-50%. However, to avail of the facility, one must opt for policy renewal within 90 days of the expiration date.

3. Age-based Discounts

Based on the age group of the applicant, car insurance providers decide specific discounts. 

For instance, if you are currently aged between 25 and 65, you will benefit the most. A considerable reduction in premium while policy renewal is possible for the people belonging to this age group. However, to leverage this factor, the applicant must have a favourable driving record and a good credit history.

4. Professional Discounts

If you are in the army or have chosen a profession in the medical field, you are eligible for car insurance discounts from certain companies. Therefore, looking for such deals before renewing your active insurance policy is recommended.

5. Exclusive Auto Insurance Discounts for WIAA or AAI Members

A fixed premium discount is allotted to all members of the Western India Automobile Association (WIAA) and the Automobile Association of India (AAI). For the WIAA professionals associated with motoring services, the insurance rebate can be a maximum of Rs. 500 for four-wheelers.

6. Discount for Installing Security Devices

When installed in your car, the latest automotive security systems help raise claims for mandatory rebates. Therefore, consider updating the existing security devices as per the guidelines published by the Automotive Research Association of India.

7. Discount on Auto Insurance Based on Driving Records

The discount component solely depends on the insurance company's discretion. If a driver possesses decent driving skills and is considered safe on the roads, then the insurer awards a discount on own damage.

8. Slashing Down Third-party Insurance Coverage

It calls for customising a predetermined policy to avail of a discount on the insurance premium. Under this method, a policyholder requests the insurer to drop the third-party coverage, and as a result, the premium is reduced.

9. Early Bird Discounts

During insurance renewals or fresh insurance plan purchases, several insurance providers also offer early bird discounts. These discounts are valid for only a limited period and basically encourage policyholders to purchase the plan as soon as possible.

10. Anti-theft Discounts

In this case, a discount of around 2.5% on the Own Damage premium is offered to car owners if they have secured their vehicle with an anti-theft device approved by the Automotive Research Association of India. 

Many insurers who accept such proposals are now available. Hence, considerable market research is suggested for those planning to implement this tactic. Eventually, foolproof car insurance helps a vehicle owner avoid unforeseen financial liabilities following a mishap. In this regard, you must know all the car insurance discounts to make the most out of the relevant offers.