April 07, 2025 - Zurich Kotak
General Insurance, one of India’s most trusted insurance providers, has been
delivering comprehensive and customer-first insurance solutions. As the time
for car renewal approaches, we are excited to share invaluable insights on how
policyholders can reduce their car insurance premiums without compromising on
essential coverage. In India, third-party car insurance is deemed to be a
mandatory legal requirement. Additionally, a car insurance policy is also a safety net
for all vehicle owners.
The common perception that
policy renewals are costly prevents many from fully exploring all available
options. Due to an increase in vehicle repair costs, rising inflation, or a
high volume of claim histories, premiums tend to escalate with each renewal
cycle. Given that there is often little guidance available on how to optimize
premium rates, Zurich Kotak General Insurance is committed to helping its
customers navigate the renewal process with ease. Policyholders can renew their
car insurance policy quickly by simply entering their existing policy number or
customer ID.
Key
Strategies to Reduce Car Insurance Premiums During Renewals
1. Maintain a Clean Driving Record
A clean driving record is
one of the most effective ways to reduce your car insurance premiums. Zurich
Kotak General Insurance encourages policyholders to prioritize safe driving and
avoid accidents or traffic violations, as this will directly impact the premium
they pay. Insurers view drivers with a history of safe driving as less likely
to file claims, thus offering them lower premiums. Additionally, policyholders
with a proven track record of safe driving are eligible for no-claim bonuses
and discounts.
Opting for higher
deductibles can be another strategic way to lower premiums. Zurich Kotak
General Insurance always recommends vehicle owners carefully evaluate their
finances to determine if or not a higher deductible is feasible for them. A
higher deductible simply means that in the event of a claim, the policyholder
would have to bear a larger share of the costs. However, this approach can
lower your monthly or annual premiums. This strategy is especially beneficial
for those who have a good driving record and are confident they will not need
to make frequent claims.
2. Leverage the No-Claim Bonus (NCB) to
Reduce Premiums
Zurich Kotak General
Insurance offers a No-Claim Bonus (NCB), which is one of the most rewarding
discounts available to policyholders. If you have gone through your previous
policy term without any claim, then you are entitled to a No Claim Bonus (NCB).
This can result in significant premium savings. It’s crucial to check if your
claim-free status qualifies for a No-Claim Bonus (NCB) before renewal.
In some scenarios, the
discounts can reach up to 50% based on claim-free years. Policyholders
can take advantage of the NCB at renewal time, as it directly reduces renewal
costs and indirectly promotes safe driving habits. For many policyholders, it
has become a powerful tool to reduce their premiums. Here's a breakdown of how
it works:
- The
No-Claim Bonus starts at 20% after your first claim-free year.
- This
discount increases progressively with each successive claim-free year.
- Depending
on how many claim-free years you've accumulated, you can eventually claim
up to 50% off your premium for a policy term.
3. Tailor Coverage Based on Your Vehicle’s
Condition
As vehicles age and their
market value decreases, it may not be necessary to carry the same level of
coverage as when the vehicle was brand new. It is advisable for policyholders
with older cars to assess whether full coverage remains financially viable. Our
experts suggest conducting a yearly assessment to ensure that the coverage
matches the vehicle’s current value. Third-party car insurance premiums are
determined by the Insurance Regulatory and Development Authority of India
(IRDAI), depending on the car’s cubic capacity and segment.
Zurich Kotak General
Insurance offers add-ons for policyholders to choose something that truly adds
value to their coverage. For example, roadside assistance, engine protect, and
depreciation cover are valuable in many circumstances. You can choose the insurance
policy that fits you the best:
- Comprehensive
Car Insurance Policy (Extensive coverage).
- Third Party
Car Insurance Policy (Mandatory coverage).
- Stand-Alone
or Own Damage Policy.
4. Install Anti-Theft and Safety Devices for
Premium Reductions
Opting for a voluntary
deductible and installing an IRDAI-approved anti-theft device can lead to extra
savings. Policyholders can also benefit from premium discounts by being a
member of an automobile association, choosing a voluntary deductible, and installing
safety devices in their vehicles. These discounts help lower the overall cost
of insurance. Each vehicle has a unique risk profile based on factors such as
make, model, age, and usage. Zurich Kotak General Insurance helps you to
properly assess the risks associated with your specific vehicle and adjust your
coverage accordingly to optimize savings.
5. Renew Your Policy Online to Unlock
Exclusive Discounts
Zurich Kotak General
Insurance provides policyholders with the opportunity to renew their car insurance policies online to enjoy convenience
and cost benefits. Checking an insurer's credibility is simple with access to
online reviews, claim settlement ratios, and resolution time insights. Here are
the exact steps you need to follow:
- Check
policy inclusions, exclusions, and available add-ons.
- Evaluate
claim settlement ratios to ensure a smooth claims process.
- Read
customer reviews and ratings to gauge the insurer’s reliability.
- Choose a
policy that fits their budget and specific coverage needs.
- Additionally,
avoiding a gap in coverage is crucial, as lapses are considered a
potential risk, often resulting in higher premiums when reinstating a
policy.
Why You Need
to Choose Zurich Kotak General Insurance?
We seek to empower
policyholders to significantly lower their premium renewals while maintaining
the protection they need. Beyond simply providing coverage, we have been keen
on educating four-wheeler vehicle owners about making the best decisions when
it comes to insurance, especially in the context of renewal periods.
Zurich Kotak
General Insurance Company (India) Limited (Formerly known as Kotak Mahindra
General Insurance Company Limited)
Zurich Kotak General Insurance Company
(India) Limited is a 70:30 joint venture between Zurich
Insurance Group and Kotak Mahindra Bank. The Company its new name ‘’Zurich
Kotak General Insurance Company (India) Limited’’ in the month of August 2024,
following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General
Insurance Company Limited. It is the youngest and one of the fastest growing
non-life insurance franchises in India.
Kotak General Insurance was
established in 2015 to service the growing non-life insurance segment in India.
The company aims to cater to a wide range of customer segments &
geographies offering an array of non-life insurance products like Motor, Health,
Home etc. As a practice, the company seeks to provide a differentiated value
proposition through customized products and services leveraging state of art
technology and digital infrastructure.