Let’s be real, car insurance in India can sometimes feel like a necessary evil. You have to buy it, but the premiums just keep rising year after year. What if we told you that you could save a lot on car insurance without giving up protection?
Sounds like a dream? It’s not. With the right tips and a little planning, you can keep your car covered and your wallet happy.
In this article, Money Moksh breaks down the smartest ways to save on car insurance in India while staying fully protected. Buckle up, and let’s dive in!
What’s Shaking Up the Car Insurance Space in 2025? 🔮
The Indian car insurance market is buzzing with change!
📰 Breaking News : In April 2025, IRDAI (Insurance Regulatory and Development Authority of India) introduced a proposal to make usage-based insurance (UBI) more mainstream. That means your premium could soon depend on how you drive, not just what you drive. Good drivers equal cheaper premiums. Rash drivers, well, you know the drill.
Plus, leading insurers like Acko and Digit are using AI to settle claims in just a few hours. Talk about a tech-powered transformation.
1. Compare Before You Commit 🔍
One of the biggest mistakes people make? Sticking with the same insurer year after year without comparing. Use platforms like:
- Policybazaar
- Coverfox
- InsuranceDekho
Check premiums, add-ons , and claim settlement ratios. Never settle for less when better options are a click away!
2. Pick the Right Coverage Type 🛡️
You’ve got two main types :
- Third-Party (mandatory but limited)
- Comprehensive (protects you and your car)
Comprehensive is more expensive, but it provides far better protection. Save on it by dropping unnecessary extras.
3. Choose a Higher Deductible (If You Can Afford It) 📉
A voluntary deductible means you’re agreeing to pay a portion of the claim cost yourself. In return, your premium drops.
💡 Pro tip: Set a deductible you’re comfortable with. Don’t set it so high that it hurts during a claim.
4. Install Anti-Theft & Safety Devices 🔒🚨
Did you know? Cars with ARAI-approved anti-theft devices get up to 5% off on premiums! Add :
- Gear locks
- Steering locks
- GPS trackers
- Dashcams
More safety means more savings and peace of mind.
5. Drive Well, Pay Less 🛣️
With telematics and AI tracking driving habits, your behavior behind the wheel now directly affects what you pay. Keep it cool :
- No overspeeding
- No rash braking
- Fewer accidents
Drive smart, and watch your premiums drop over time.
6. Max Out Your No Claim Bonus (NCB) 🎁
No claims equal big rewards! NCB can go up to 50% off your renewal premium if you avoid making claims for five consecutive years.
Even better? NCB is transferable – so if you switch cars or insurers, your reward stays with you.
7. Never Let Your Policy Lapse ⏰
Missed renewals equal trouble.
- You’ll lose your NCB
- You may need vehicle inspection
- You risk getting fined
Set a calendar reminder or automate renewals to stay on track.
8. Be Smart About Add-Ons 🧩
Add-ons can be useful, but only if they fit your situation. Must-haves for most :
- Zero Depreciation
- Engine Protect (for flood-prone areas)
- Roadside Assistance (if you travel often)
Skip what you don’t need to avoid bloated premiums.
9. Go Long-Term & Lock In Rates 🔐
IRDAI allows new cars to have three-year long-term car insurance. Why it’s awesome :
- One-time premium
- No yearly hikes
- Full protection for three years
Perfect for hassle-free driving.
10. Use Cashback, Wallets & Rewards 💳🎉
Insurers and fintech platforms now offer discounts via digital wallets. Try :
- Paytm
- PhonePe
- Amazon Pay
- CRED
You might get 5–10% cashback or vouchers on renewals!
11. Ask the Experts (Or Let AI Help) 🧠🤖
Confused? Don’t guess—ask! Most insurers now have 24/7 AI chat support. You can also call a certified advisor for free consultations, especially if your needs are unique. ☎️
Remember, A well-chosen plan is better than a cheap, poorly-fitted one.
12. Avoid Small Claims 🛑💵
Yes, that dent was annoying. But if it only costs ₹3,000 to fix, don’t claim it. Why?
You’ll lose your NCB, and your next year’s premium goes up.
Think long-term. Use insurance only for big damages.
Digging Deeper : Smarter Coverage Equals Bigger Savings 🧠💡
It’s all about value, not just price. Here’s what most smart car owners do :
- Choose deductibles that save without risking too much
- Get only useful add-ons
- Review policy yearly
- Adjust coverage as the car ages (older car means less coverage needed)
Insurance should work for you, not just be a formality.
Final Thoughts : Drive Smart, Insure Smarter 🚦💡
Car insurance doesn’t have to be expensive to be effective. With these tried-and-tested savings tips, you can:
- Stay fully protected
- Save thousands annually
- Adjust to evolving insurance trends
The new-age Indian driver is informed, digital-savvy, and financially wise, and at Money Moksh, we’re here to help you stay that way.
So next time you shop for or renew your car insurance, remember : Don’t just buy it, optimize it.
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