Sanjeev Nanda tips on How to save on your Insurance Premiums

20 May

Do you know you can save as much as 65% on your new car’s insurance? Your insurance agent will never tell you that you can transfer a No Claim Bonus (NCB) from your old car, but my friend Shruti paid only Rs.10,700 for Rs.27,000 worth of comprehensive insurance for her new car. SHe just transferred the NCB from her old Maruti Zen to reduce the cost of insurance for her Honda City Vtec. Why didn’t his friendly agent volunteer information about this remarkable deal? Because the more a buyer pays the insurance company, the more commission its agent makes.

Most Indian car buyers negotiate on financing, dealer discounts and freebies but forget about the insurance component.

Sanjeev Nanda shows you how to use the NCB to save on your insurance premium:

1. When you sell your old car:
The biggest mistake people make is transferring the insurance lock stock and barrel when selling a car. Ensure that ownership is transferred and make a photocopy of the new entry in the RC book for insurance purposes.

2: Obtain the NCB certificate: Forward a copy of the delivery note to your insurance company and ask for the NCB certificate or holding letter. This letter is valid for three years; you may find it easiest to go to your insurer’s local office to pick it up in person.

3: Use the NCB:
Forward the NCB letter to your new car’s dealer. Voila! You have just transferred the NCB to your new car insurance and saved a bundle.

Remember to shop around; manufacturers’ insurance schemes are much cheaper than regular insurers’. In one case, insurance for an old Maruti 800 was quoted at Rs.4,800 when the official Maruti insurance was available for just Rs.2,800.

Another process, if you are happy with your existing insurance company, is to go to the insurer with your new car invoice and chassis number. The agent should use your NCB to offer a reduced premium and give you a cover note on the spot. The dealership will need this cover note to register your car with traffic authorities.

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One Response to “Sanjeev Nanda tips on How to save on your Insurance Premiums”

  1. Prashant May 24, 2010 at 10:38 pm #

    Very Well Said

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