Reduce vehicle insurance on new vehicles - Fusion - WeRIndia

New guidelines have been issued on motor insurance policy with respect to third party motor insurance.

Now, new vehicle owners have to pay long-term third party insurance.

It is 5 years for two-wheelers and 3 years for four-wheelers. So, the premium will also be higher.

In this situation, there are certain ways to reduce your vehicle insurance.

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• Since IRDAI made it mandatory for long-term third party insurance cover, you must take it for multi-year. Yet, there is no such rule on your own damage cover, you can take it for one year.
• If you do not make any claim for one or two consecutive years, then your insurance premium amount will be reduced for further years. This is because, the insurance companies consider you as a safe driver.
• If you do not use your vehicle for a certain period, then you can get a discount or extend the coverage for that period. But, you have to inform it to your RTO office to avail the discount.
• In case you buy a new vehicle by selling the older vehicle, then you can get the no claim bonus (NCB) transfer to your new vehicle insurance policy. This can be done by carrying forward the accumulated NCB in your past policy.
• Buy the nil depreciation policy on the first year, as the cost is low in the initial year. Then add on cover for the next consecutive years.
• Always renew your insurance policy on time which helps retaining your no claim bonus facility.
• Your profession and driving style are certain parameters that are considered for getting discount on your insurance policy.
• Your loyalty to the company will also help you getting discounts in your insurance premium.
• Do not claim insurance for minor accidents as it will negate your no claim bonus.
• Members of AAI and some other eligible people can get the discounts in the premium.

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