speak for ACKO
speak for ACKO
speak for ACKO
Home / Car Insurance / Articles / 10 Tips to Reduce Your Car Insurance Premium
10 Tips to Reduce Your Car Insurance Premium
Team AckoDec 30, 2025
Share Post
You can reduce your car insurance premium during renewal by driving safely and maintaining a clean driving record, avoiding add-ons that can increase the cost, such as roadside assistance, and refraining from making small claims to build your No Claim Bonus (NCB). Lowering your car insurance premium is simple when you understand the factors that determine premium rates. With the proper approach, you can substantially reduce your insurance expenses while maintaining the protection your vehicle requires.
Contents
- Tip 1 – Install Anti-theft Devices
- Tip 2 – Choose a Higher Deductible
- Tip 3 - Reward No Claim Bonus
- Tip 4 – Timely Policy Renewal
- Tip 5 – Choose Your Cover Wisely
- Tip 6 – Buy Car Insurance Online to Avoid Extra Costs
- Tip 7 – Choose the Right Insured Declared Value (IDV)
- Tip 8 – Maintain a Clean Driving Record
- Tip 8 – Maintain a Clean Driving Record
- Tip 9 – Understand How Location Affects Premium
- Tip 10 – Bundle Insurance Policies
- Ideal Insurance Coverage
Here are a few useful tips that can help you reduce your car insurance premium and save money.
Tip 1 – Install Anti-theft Devices
Installing anti-theft devices in your car acts as a layer of defense against theft. Insurance companies often view it as a measure that reduces the probability of the car being stolen. This is reflected in the risk profile of the car and correspondingly in the premium charged as well. Because the risk of theft is less compared to a car with no anti-theft device, the insurance premium charged will be on the lower side.
The anti-theft devices installed in your car need to be approved by Automotive Research Association of India to avail the concession. Also, members of the Western India Automobile Association are eligible for discount on their insurance premium.
Tip 2 – Choose a Higher Deductible
Whenever there is a loss, the insured also has to bear a certain percentage of the final claim amount. This amount is known as deductible. Deductibles are of two types, compulsory and voluntary.
For example, if there is a valid claim of Rs. 10,000, you will have to contribute Rs. 500 as compulsory deductible and the insurance company will pay you Rs. 9,500. If you choose to go for a voluntary deductible of Rs. 2,000 while purchasing the policy, then you will be charged less (percentage depending upon your voluntary deductible amount) insurance premium throughout but the insurance company will pay you Rs. 7,500 as the claim amount, as it will subtract the compulsory and voluntary deductible.
Therefore, people who drive safe and feel that their exposure to risk is minimal, can opt for a higher voluntary deductible to reduce the premium amount.
Tip 3 - Reward No Claim Bonus
Those who do not make a claim during a policy year are rewarded with a No Claim Bonus (NCB) which results in a discount on the premium amount. This NCB is also carried forward to the next policy year if it is not availed during the current policy year. It plays a major role in reducing your premium amount.
Tip 4 – Timely Policy Renewal
If your policy is not renewed in a timely manner, you can lose your NCB. Also, renewal of car insurance policy after its expiry date might warrant a car inspection. These two instances will increase your car insurance premium as the insurance company will consider it as a new policy.
Tip 5 – Choose Your Cover Wisely
Add-ons are meant to provide additional protection and widen your insurance coverage. However, they also increase your insurance premium. While strengthening your Comprehensive Car Insurance policy with Add-ons, make sure to opt for only those Add-ons that you really need.
Also, read: Cheapest Car Insurance - Is it Good Or Bad?
Tip 6 – Buy Car Insurance Online to Avoid Extra Costs
Premiums for traditional car insurance are raised by agent fees, paperwork, and operating expenses. These expenses are reduced when you purchase car insurance online from digital-first providers like ACKO.
This means:
Reduced premiums
Quick quotes
No paperwork
Quicker acquisition and renewal of policies
One of the easiest methods to save money up front is to buy online.
Tip 7 – Choose the Right Insured Declared Value (IDV)
Your car's current market value is represented by the IDV. A lower IDV lowers premiums but may result in smaller claim payouts; a greater IDV raises premiums.
To wisely lower your premium:
Set an IDV that accurately represents the market value of your vehicle.
Refrain from increasing IDV unnecessarily.
This guarantees sufficient protection and balanced premium prices.
Tip 8 – Maintain a Clean Driving Record
Many insurers consider careful drivers to be low-risk, which results in lower premiums. Keeping a clean driving record includes:
No violations of traffic
No frequent accidents
Being a responsible driver
A clean driving record increases your chances of receiving discounts and lowers the possibility of increased premiums as a result of claims.
Tip 8 – Maintain a Clean Driving Record
Many insurers consider careful drivers to be low-risk, which results in lower premiums. Keeping a clean driving record includes:
No violations of traffic
No frequent accidents
Being a responsible driver
A clean driving record increases your chances of receiving discounts and lowers the possibility of increased premiums as a result of claims.
Tip 9 – Understand How Location Affects Premium
Premiums for auto insurance differ by region. Higher premiums are found in:
Metro areas
High-crime regions
Zones with a high accident rate
Areas vulnerable to flooding
Premiums will be reduced if you re-register your car or relocate to a safer region.
Tip 10 – Bundle Insurance Policies
You can effectively lower your overall premium rates by bundling insurance policies. When you decide to purchase numerous insurance from an insurer, many of them offer attractive discounts.
Certain insurers provide discounts if you:
Insurance for multiple cars
Combine car, bike, and house insurance
Purchase many insurance policies from the same provider.
Bundling contributes to lower premiums.
Ideal Insurance Coverage
The idea behind purchasing a Comprehensive Car Insurance policy is to widen your insurance coverage. It is productive to look out for ways on how to get cheaper car insurance policy but it shouldn’t be done by compromising on your insurance coverage. Choose your insurance cover prudently to reduce the insurance premium.
| Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. |
Explore More:
More articles on car insurance
Explore more on car insurance
Recent
Articles
10 Tips to Reduce Your Car Insurance Premium
Team Acko Dec 30, 2025
How to Choose the Right Travel Insurance Policy?
Team Acko Dec 30, 2025
Moratorium Period in Life Insurance
Neviya Laishram Dec 29, 2025
Who is an Appointee in Life Insurance?
Neviya Laishram Dec 22, 2025
What is Survival Benefit in Life Insurance?
Neviya Laishram Dec 22, 2025
All Articles
Want to post any comments?
Instantly check chassis number & VIN by registration number
Enter your vehicle number
Check vehicle details
#36/5, Hustlehub One East, Somasandrapalya 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102