Saving on Car Insurance Made Fast and Easy in English


Saving on Car Insurance Made Fast and Easy in Hindi : Auto Club County Mutual Insurance Company (AUTO) and Auto Club Indemnity Company (Home/Watercraft and Umbrella) provide AAA insurance coverage as do AAA Texas affiliated insurance companies. Every listed insurance company has full financial responsibility for its products.


Getting AAA insurance usually requires a separate purchase of an AAA membership. AAA Insurable is a collection of AAA branded products, services and applications available to eligible AAA members. AAA Personal Line Provided by AAA Texas Subsidiary Insurers: Auto Club for Auto by County Mutual Insurance Company and Auto Club Indemnity Company for Home/Condo/Tenants and Watercraft. AAA acts as a Texas agent.

Life insurance is underwritten and the annuity is provided by AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. Motor Club and/or its affiliates act as agents for its affiliates, including AAA Life. Every listed insurance company has full financial responsibility for its products.

As a law abiding citizen of India, it is your responsibility to buy auto insurance. But, this should not leave a hole in your pocket. A little wisdom will go a long way in saving you on car insurance. That is why we are here to give you some tips on buying cheap auto insurance at the right time to save money.

It takes a few minutes to save some money on car insurance costs by keeping the below areas in mind,

1. On Renewal

You will have a lot of options while renewing your motor insurance policy. Upon renewal, you will have the opportunity to make adjustments to coverage. Correct your past mistakes this time.

  • Reconsider the insurance company: Are you happy with the service they provide?
  • Compare Policies: Did you compare policies from different insurance companies last time?
  • Adequate Coverage: Are the add-ons you purchased last time useful? Do you need more coverage?

Ask yourself these questions and make necessary adjustments to the new policy. Also, if you have not filed a claim, you can get No Claim Bonus (NCB).

2. While Selling a Vehicle

If you plan to sell your vehicle, consider selling it when the insurance is renewed. Since you won't be an owner for long, it makes sense to buy the most basic coverage. It is mandatory in India to have third-party (TP) motor insurance by law. When selling your vehicle cover it with a TP policy and transfer the insurance to the new buyer.

3. When buying Your First Vehicle

Like renewing an auto insurance policy, purchasing a new policy gives you the chance to get an affordable policy with adequate coverage. In this case, since your vehicle is brand new, you will get more mileage than the old one.

For example, NCB is offered only for the first five years of purchase of a new vehicle. This is a long but ongoing way to save on motor car insurance. It is also a good idea to buy a comprehensive auto insurance policy at this time. This will slightly increase the premium amount, but will provide comprehensive coverage for your new vehicle.

4. After Claims

In other countries, making a claim has an adverse effect on an auto insurance policy. Fortunately, this is not the case in India. Even if your vehicle is treated as a 'total loss', you still get to buy a new policy for a new vehicle. The premium amount will depend on the make and model of the vehicle, irrespective of your claiming history.

5. When Usage Decreases

Suppose you have got a new job and the office is located near the railway/metro station. Now commuting is easy and you don't need to take your vehicle to your new workplace. Your auto insurance policy should reflect this low usage. Add-ons like Roadside Assistance or NCB Protection can now be removed, as less usage makes you less likely to claim.

Also, if your car is just parked somewhere and you don't use it often, a simple comprehensive policy will suffice to protect it from theft and vandalism. It will also be beneficial if you are living in an area prone to natural calamities.

Ways to Save Money on Car Insurance in your 20s

Read on to learn some tips on how to save money on car insurance in your 20s.

1. Better Safe Than Sorry

Buying car insurance is mandatory if you want to drive your car in India. You may be tempted to just follow the essentials and not spend too much money. Yes, third-party insurance is cheaper, but it does not serve the purpose of insuring your car as it does not cover the cost of repairing damages to your car.

On the other hand, a comprehensive car insurance plan gives you all-round protection. It is costlier than the basic policy but acts as a financial safety net in case your car gets damaged. You're in your 20s, adventurous and eager to let go. Road trips, long drives, daily commute etc. are an essential part of your life which increase the risk of accident. The cost of repairing your damaged car will be much more than what you would spend on purchasing a comprehensive car insurance plan. Thus, it is better to be safe than sorry.

2. Adding Add-ons?

Add-ons are additional car insurance covers designed for added financial protection. People can go overboard while choosing add-ons which result in unnecessary coverage and increase in insurance premiums. These are not the impulsive purchases that you make while shopping. Thinking about it, you might not even need an add-on.

Be prudent when choosing add-ons, choose only the ones that best suit your needs. For example, opt for a car accessories cover if you travel with expensive gadgets in your car and do not opt ​​for a passenger cover if you often travel alone.

3. Jazzing It Up? Think Again

Looking to jazz up your car after watching the Fast & Furious franchise? Fast cars only look good on the screen or on the racing track. Modifying your car can increase your insurance premiums. Repairing damaged parts of a modified car can also be costly. Over-the-top exteriors and gadget-filled interiors can also attract unwanted attention and make your car susceptible to theft.

4. Install Anti-theft Devices

Wait, don't let your imagination run wild, it's not like those Home Alone movies. Installing basic anti-theft devices in your car can reduce its insurance premium. Insurance companies may consider the fact that you have taken proactive steps to ensure that your car does not get stolen. Thus, reducing its risk. Make sure to install anti-theft devices approved by Automobile Research Association of India and inform your insurance company about the same for discount on insurance premium.

5. Safety First, Always

Your twenties are the time when you are exploring new routes and getting used to driving. This makes it even more important to be alert, follow the rules and drive safely. Insurance companies reward safe driving in the form of No Claim Bonus (NCB). NCB is a discount on your insurance premium. It is offered upon policy renewal for every consecutive claim-free year. This discount can go up to 50 percent.

6. Purchasing Car Insurance Online

Insuring your car directly from an insurance provider can help you save up to 80% on car insurance. wonder how? When you buy insurance directly from the insurance company, you deduct all the middle sides. New-age insurance companies are digital-first. This means that they do not spend much on physical infrastructure and other costs. They pass on such cost benefits to their customers. Hence, you can compare car insurance online and choose the appropriate insurance to make car insurance online shopping quick, easy and convenient.

How to Avail Best Car Insurance With Budgeted Premiums

Whether you are buying a car or car insurance, budgeting is an important aspect. People want all the features but don't want to pay exorbitant price for it. This is where budgeting becomes important. Appropriate budgeting does not mean cutting down on features and benefits to reduce the price of the product. It involves striking the right balance between what is required and the amount to be paid for it.

1. Car Insurance Prices

There are two types of car insurance policies in the Indian market, Third Party Liability and Comprehensive Car Insurance. Third-party liability insurance is mandated by law, so its prices are stated by the Insurance Regulatory and Development Authority of India (IRDAI). However, the price of a comprehensive car insurance policy varies from insurer to insurer. This is because the features and benefits generally offered by the comprehensive policies of different insurers differ.

Insurers provide various features and add-ons in their policies and charge as per their strategy. Thus, there is bound to be some variation in the price charged for comprehensive car insurance policies.

2. Variables

Car insurance prices vary based on the information you share with the insurance company. The make and model of your car, the year you registered it, your claim history, etc. have an impact on the car insurance value. These are things that you cannot change because you have to be honest while declaring the information. However, there are some variables you can modify. Changing the following variables will have a direct impact on the car insurance premium.

  • Add-ons

As the name suggests, add-ons are additional features that you can buy with your comprehensive car insurance policy. These add-ons are mostly designed to meet the exceptions of the basic comprehensive policy and give a personal touch. For example, passengers in a car are not covered by a basic comprehensive car insurance policy. But if you go for the Passenger Cover add-on, they are covered.

Add-ons increase your insurance cover and they increase your premium too. Thus, it is suggested to go for only those add-ons which are absolutely essential. For example, if you usually drive alone then there is no need to go for the Passenger Cover add-on.

  • Voluntary Deductible

Even a small increase in the voluntary deductible amount can reduce your car insurance premium. By opting for voluntary deduction, you tell the insurance company that in case of monetary loss due to some unfortunate event, you will contribute some percentage of the claim amount and the insurer will not have to pay you the full claim amount. The flip side of this is that you will receive a lesser amount when you make an insurance claim. Thus, if you are opting for the voluntary deduction, do not keep it too high.

3. Proactive Measures

Installing anti-theft devices is seen by insurance companies as a proactive measure. Thus, they can provide a discount on the insurance premium if the car has anti-theft devices that are approved by the Automobile Research Association of India (ARAI). You can also get a discount on car insurance premium by becoming a member of the Automobile Association of India.

4. Compare Car Insurance

You can easily compare car insurance prices by visiting insurer's websites and using their car insurance calculator. All you have to do is enter some basic information and the car insurance calculator will give you an estimated cost of insuring your car. Once you know the quotes, you can compare them against the features offered by each insurer and then choose the policy that best fits your budget. There are also insurance comparison websites that compare policies and give you quotes.

Buying cheap motor insurance is no rocket science. By using simple online tools like comparison and car insurance premium calculator while buying or renewing a policy, you can easily get the cheapest product available. These tools are at your disposal at all times. A cheap policy is not necessarily the worst if you choose the right coverage. Thus, it is always the right time to buy cheap auto insurance.

Disclaimer: The content of this page is general and shared for informational and explanatory purposes only. It is based on industry experience and several secondary sources on the Internet; and is subject to change. Please refer to the applicable policy terminology for updated ACKO-focused content and before making any insurance-related decision.


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