Car insurance is a legal necessity in India under the Motor Vehicles Act, 1988, with fines up to ₹2,000 (₹4,000 for repeat offenses) for driving uninsured. With car insurance premiums rising 7.5% on average in 2025, per ValuePenguin.com, finding ways to save is crucial. A single accident, like a bumper repair costing ₹10,000, can strain finances without coverage. Policybazaar, India’s leading insurance comparison platform (IRDAI Registration No. 742, valid till 09/06/2027), helps drivers compare 20+ insurers, access instant quotes, and secure plans starting at ₹2,094 annually. Serving over 9 million customers with a 99% claim settlement ratio, Policybazaar offers tools to reduce premiums while maintaining robust coverage. This blog shares five expert tips to lower your car insurance premium on Policybazaar, along with pros, cons, FAQs, and actionable insights for 2025.
Why Lowering Car Insurance Premiums Matters
Car insurance protects against financial losses from accidents, theft, fire, natural calamities, and third-party liabilities. Premiums depend on factors like your car’s make, model, engine capacity (cc), location, and driving history. For example, a 2023 Maruti Swift in Delhi may cost ₹7,000 for comprehensive coverage, while a luxury SUV could exceed ₹20,000. With medical inflation at 13% and repair costs rising, per Aon’s 2025 Report, affordable premiums are vital. Policybazaar’s platform simplifies cost-saving by offering comparisons, discounts, and flexible plans like Pay As You Drive (PAYD), ensuring you get the best deal without compromising coverage.
5 Tips to Lower Your Car Insurance Premium on Policybazaar
Here are five practical strategies to reduce your car insurance premium using Policybazaar’s tools and features in 2025:
1. Compare Plans from 20+ Insurers
Policybazaar’s comparison tool lets you evaluate plans from insurers like HDFC Ergo, ICICI Lombard, and TATA AIG based on premiums, coverage, add-ons, and claim settlement ratios (e.g., TATA AIG’s 98%). For a 2023 Hyundai Creta, you can compare a ₹7,500 comprehensive plan from SBI General with a ₹6,800 plan from Digit, factoring in cashless garage networks (10,200+ for SBI). The platform’s AI-driven suggestions highlight cost-effective options, saving up to 91% by eliminating agent commissions.
2. Leverage No Claim Bonus (NCB)
NCB is a discount of 20–50% on Own Damage (OD) premiums for claim-free years, transferable across insurers on Policybazaar. For example, five claim-free years can halve your OD premium, reducing a ₹10,000 policy to ₹5,000. Avoid filing small claims (e.g., ₹2,000 dents) to preserve NCB, paying minor repairs out-of-pocket. Policybazaar’s My Account dashboard tracks NCB status, and the Insta Renew feature ensures timely renewals to retain benefits.
3. Opt for Higher Voluntary Deductibles
A voluntary deductible is the amount you agree to pay during a claim, reducing your premium. For instance, increasing your deductible from ₹1,000 to ₹5,000 can lower a ₹9,000 premium by 10–15%. Policybazaar’s calculator shows premium savings for different deductible levels, helping you choose an affordable amount (e.g., ₹2,500 for a Maruti Baleno). Ensure the deductible aligns with your budget to avoid claim-time stress.
4. Install ARAI-Approved Anti-Theft Devices
Installing Automotive Research Association of India (ARAI)-approved devices like gear locks or alarms reduces theft risk, earning up to 2.5% or ₹500 off OD premiums. For a ₹7,000 policy, this saves ₹175–500. Policybazaar’s platform highlights insurers offering anti-theft discounts (e.g., Bajaj Allianz) and advises notifying insurers of installations to validate discounts, preventing claim rejections.
5. Choose Pay As You Drive (PAYD) Plans
PAYD, introduced in 2020, charges premiums based on kilometers driven, ideal for low-mileage drivers (e.g., 5,000 km/year). A Delhi-based driver with a Honda City can reduce a ₹8,000 premium to ₹5,000 by opting for PAYD on Policybazaar, recharging limits if needed. The platform’s telematics integration tracks mileage accurately, ensuring fair pricing. This suits urban professionals or second-car owners who drive less.
Additional Ways to Save on Policybazaar
- Avoid Unnecessary Add-Ons: Skip add-ons like tyre protection or garage cash unless needed, as they increase premiums by ₹500–₹2,000. Policybazaar lets you customize add-ons for cost efficiency.
- Renew Timely: Lapsed policies lose NCB and may incur higher renewal rates. Use Policybazaar’s Insta Renew for one-click renewals before expiry.
- Join Associations: Membership in groups like the Automobile Association of India (AAI) can unlock special discounts, visible on Policybazaar’s comparison tool.
- Review Coverage Needs: For older cars (e.g., 10+ years), consider third-party plans (₹2,094 for <1,000cc) over comprehensive to save costs, balancing coverage with value.
Pros of Using Policybazaar to Lower Car Insurance Premiums
- Extensive Comparison: Access 20+ insurers, comparing premiums, CSRs (e.g., ICICI Lombard’s 97%), and 10,200+ cashless garages.
- Cost Savings: Save up to 91% with online purchases, NCB, and discounts like 2.5% for anti-theft devices.
- Transparency: View customer reviews, policy details, and garage networks.
- Convenience: Instant quotes, no paperwork, and app-based management via My Account.
- Claim Support: 99% claim settlement with 24/7 assistance and dedicated managers.
- Innovative Plans: PAYD and monthly mode options (introduced 2025) suit low-mileage or budget-conscious drivers.
- Trusted Platform: IRDAI-approved, serving 9 million+ customers with awards for innovation.
Cons of Using Policybazaar to Lower Car Insurance Premiums
- App Glitches: Occasional errors (e.g., “Something went wrong”) during purchases or renewals.
- Support Delays: Peak-hour call wait times can reach 5–10 minutes.
- Telemarketing: Post-purchase calls for cross-selling (e.g., health insurance) can be intrusive.
- Policy Errors: Incorrect details (e.g., wrong cc) may take 7–10 days to correct.
- Intermediary Role: Policybazaar facilitates but doesn’t control insurer decisions, potentially delaying complex claims.
How to Use Policybazaar to Lower Your Premium
- Visit www.policybazaar.com or download the app.
- Select “Car Insurance” and enter your car’s registration number or details (make, model, year).
- Provide personal info (name, mobile, city) and declare mileage or PEDs.
- Compare plans by premium, coverage, add-ons, and garage network.
- Adjust deductibles, add anti-theft discounts, or select PAYD via the calculator.
- Pay via UPI/card; receive e-policy instantly. Contact 1800-208-8787 for support.
Policybazaar’s Edge in 2025
Policybazaar’s tech-driven platform, with AI-powered comparisons and PAYD plans, addresses India’s rising premiums (7.5% in 2025). Its Claim Assurance Program, covering 1400+ garages, ensures quick repairs, while telematics and NRI Care Programs enhance affordability. Customer stories, like a Pune driver saving ₹3,000 on a ₹7,500 Swift policy via NCB and PAYD, highlight ease. Minor issues like telemarketing are offset by 24/7 support and a 99% claim ratio.
FAQs About Lowering Car Insurance Premiums on Policybazaar
Q1: How does Policybazaar help lower car insurance premiums?
A: It compares 20+ insurers, offers NCB (20–50%), PAYD plans, and discounts (e.g., 2.5% for anti-theft devices), saving up to 91%.
Q2: Is Policybazaar safe for buying car insurance?
A: Yes, it’s IRDAI-approved with secure payments and a 99% claim settlement ratio. Verify offers via 1800-208-8787 to avoid fraud.
Q3: How does NCB work?
A: NCB offers 20–50% OD premium discounts for claim-free years, transferable via Policybazaar. Avoid small claims to maximize savings.
Q4: Can I lower premiums with PAYD plans?
A: Yes, PAYD charges based on kilometers driven, ideal for low-mileage users (e.g., 5,000 km/year), reducing premiums by 20–40%.
Q5: What’s a voluntary deductible?
A: It’s the amount you pay during a claim (e.g., ₹2,500), lowering premiums by 10–15%. Policybazaar’s calculator shows savings.
Q6: Do anti-theft devices really save money?
A: Yes, ARAI-approved devices like gear locks earn up to 2.5% or ₹500 off OD premiums, verifiable on Policybazaar.
Q7: Should I avoid add-ons to save costs?
A: Skip non-essential add-ons (e.g., tyre protection) to reduce premiums by ₹500–₹2,000, customizable on Policybazaar.
Conclusion
Policybazaar makes lowering car insurance premiums in 2025 easy with tools to compare 20+ insurers, leverage NCB, adjust deductibles, add anti-theft devices, and opt for PAYD plans. Starting at ₹2,094, its plans save up to 91% while ensuring 99% claim settlements and cashless repairs at 10,200+ garages. Despite minor app glitches, its transparency and support make it ideal for cost-conscious drivers. Visit www.policybazaar.com or download the app to compare plans and save today. Share your savings tips below!
