Save Smart: Cost-Cutting Tips When Buying Insurance

Buying insurance is more than just ticking a box — it’s about getting the right coverage at the best price. Here’s a guide to help you save on premiums without compromising protection.

1. Bundle Policies for Bigger Discounts

Imagine ordering a value meal at a restaurant — combining items saves you money compared to buying each separately. Insurance works the same way. Bundling policies like health, home, and car insurance with one provider can unlock potential discounts. Additionally, managing one provider simplifies renewals and claims.

2. Compare Quotes: Research Pays Off

No two insurers offer identical pricing. For instance, two health insurance policies may have similar premiums, but one might offer a higher sum insured or better hospital coverage. To find the best deal, compare options by checking directly with insurers, reading genuine customer reviews, and reviewing metrics like claim settlement ratios.

3. Maintain a Good Claims Record

Insurance rewards caution. If you don’t file claims for minor expenses, you often qualify for a no-claim bonus (NCB), which can either reduce your renewal premium(Motor) or increase your coverage at no additional cost(Health). It’s like earning loyalty points for being a responsible customer. Consider paying out-of-pocket for smaller expenses to preserve your bonus and enjoy long-term savings.

4. Customise Your Coverage: Avoid the Unnecessary

Buying coverage you don’t need is like over-ordering at a restaurant — you pay for more than you consume. For instance, if your car is over 10 years old, you might not need add-ons like zero-depreciation coverage. Similarly, a young, healthy individual may skip certain riders in health insurance. Tailor your policy to match your risks and lifestyle.

5. Increase Your Deductible Strategically

Opting for a higher deductible lowers your premium. For example, if you can cover the first ₹10,000 in vehicle expenses during a claim, you’ll benefit from significantly reduced annual premiums. This approach works best for those with stable finances and low claim histories.

6. Reassess Policies Regularly

Just as you review your investments, revisit your insurance annually. Circumstances change — your car depreciates, your health improves, or new policies with better features enter the market. Regular reviews ensure your coverage remains relevant and cost-effective.

Smart insurance buying is about understanding your needs, staying informed, and customising coverage to avoid unnecessary expenses. A little effort today can save you significantly over the years.