What Are The Ways To Save Money On General Insurance Premiums?

Like it is right for every asset, it is necessary to insure them. Buying insurance policies for your vehicle, property, health, and travel gives you peace of mind and offers coverage when you need it. But the moment you invest in multiple insurance policies, you end up spending lakhs yearly.

So, there are ways to save money on your general insurance policy. They are –

Research and compare policies

In the era of smartphones and unlimited plans, it has become easy to compare different insurers before buying the plan. You can opt for general insurance online and research other policies for your vehicle, property, health, and travel, i.e., all the general insurance policies you need. For example, the limited liability motor insurance generally costs lesser than the comprehensive plans. But the latter offers extensive coverage, and you can customise them too.

Consider parameters such as the coverage offered against the premiums you pay. Check if the coverage suits your needs and buy only the necessary add-on covers. Ensure to invest in plans that cost you affordable premium, but also offers maximum coverage.

Use premium calculator available on insurer website

While buying the general insurance in India, remember that insurers consider a range of factors before deciding the premium you need to pay. For example, your motor insurance premium gets determined once you consider the make, model, vehicle type, city of residence, the locality you live in, and your driving record. Under home insurance, insurance companies factor in the assets in your house. They check furnishing, electrical equipment, and so forth for deciding the premium.

You can check the accurate cost of your insurance premiums based on these parameters, and the online premium calculator helps you here. All the insurance companies offer the instrument on their portals. You should add the figures on the corresponding tabs, and the calculator immediately computes the amount payable.

Renew insurance policies on time

The guaranteed way of saving time on general insurance policy premiums is by renewing the policies on time. You should renew the policy before they expire, generally 45 days before the expiration date. The timely renewal allows you to receive the discount on your insurance premiums, only if you have not filed any claims in the previous policy period. Such discounts are called the no-claim bonus.

This discount increases with every claim-free year and goes up to five years, where you receive up to 50% discount on the premiums. If you do not renew the policies on time, they get lapsed, and you might need to pay the penalty for reviving the policy. You will also need to forfeit your NCB.

If you want to invest, then do so in general insurance online. You can also contact your financial advisors or insurance agents or brokers for buying affordable and the best policies.