How Customers Can Save on Motor Insurance Premiums

Motor insurance is mandatory in India, but that doesn’t mean customers have to overpay. With smart planning, awareness of available discounts, and responsible driving, policyholders can significantly reduce their insurance premiums.

The IC-72 Motor Insurance text highlights various ways customers can save without compromising on coverage.

✅ 1. No Claim Bonus (NCB)

NCB rewards customers for claim-free years.
Discounts range from 20% (after 1 year) to 50% (after 5 consecutive years) on Own Damage (OD) premium.

👉 Example: If your OD premium is ₹10,000 and you have 3 claim-free years, you get 35% NCB = ₹3,500 discount.

💡 Tip: Avoid small claims (like minor scratches) that can wipe out your accumulated NCB.

✅ 2. Voluntary Deductibles

Apart from the compulsory deductible, customers can opt for higher voluntary excess (agreeing to bear part of claim).
This reduces OD premium by 2% to 35%, capped at ₹3,000.

👉 Example: If you agree to pay first ₹5,000 of any repair, your annual OD premium reduces by up to 25%.

✅ 3. Installing Safety & Anti-Theft Devices

Vehicles with A.R.A.I-approved anti-theft devices are eligible for discounts.
Improves security and reduces insurer’s risk.

✅ 4. Membership Discounts

Members of recognized automobile associations (like AAI, WIAA) get small but useful discounts on premiums.

✅ 5. Choosing the Right IDV (Insured Declared Value)

Premium depends on IDV, the current market value of the vehicle.
Opting for the correct IDV (not too high, not too low) ensures balanced premium and coverage.

✅ 6. Opt for Long-Term Policies

3-year or 5-year policies often come with discounted premiums and protection against annual hikes .
Saves the hassle of yearly renewals.

✅ 7. Maintain a Clean Driving Record

Fewer accidents = lower risk profile.
Some insurers offer lower premiums to drivers with no traffic violations.

✅ 8. Avoid Unnecessary Add-Ons

While add-ons like Zero Dep, RSA, or Engine Protection are useful, buying unnecessary covers increases premiums.
Agents should guide customers to select add-ons based on vehicle age and usage.

⚠️ Things That Increase Premiums

Modified vehicles (sports kits, LPG/CNG fittings).
Poor past claims history.
Commercial use of private vehicles.

🎯 Conclusion

Saving on motor insurance premiums doesn’t mean cutting corners—it means being smart:

Drive safely,
Renew on time,
Preserve your NCB,
Use voluntary deductibles wisely, and
Select only the covers you need.

👉 Pitch Line for Agents:
“Insurance premiums aren’t fixed—they reward good drivers. Help your customers save today and they’ll stay loyal tomorrow.”