Insurance companies have various clauses under which one can avail of premium discounts:
a. ‘No Claims’ discount/Bonus – if you haven’t claimed in a given year, you get the benefit of no claims discount in the form of a specific percentage reduction in your premium in the subsequent year. No claim bonuses increase with each claim free year and typically start with 20% and goes upto a maximum of 50%.
b. Voluntary Deductible discount – the insurer offers you a discount on your vehicle premium if you bear a certain amount of loss associated with each claim. Voluntary deductible is the amount that you agree to pay yourself towards a claim before the insurance company picks up the balance. The higher the voluntary deductible that you agree for, the lower your premiums.
c. Membership discount – If you are a member of a recognized Automobile Associations in India you are eligible to get a discount on your car insurance premium.
d. Anti-theft devices – If you have installed Anti-theft devices in your vehicle approved by ARAI (Automotive Research Association of India), you are eligible to get a discount of up to Rs. 500 on your premium.
e. Discount For physically challenged persons – a discount of as high as 50% is available on the Own Damage premium for physically challenged persons provided that the vehicle has been modified for use. The discount is also available for institutions exclusively engaged in the service of these people.
Vintage Cars – one can also get a discount if his/her car comes under the category of Vintage cars.