Secure Your Car With The Super Car Insurance Plan!

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Secure Your Car With The Super Car Insurance Plan!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

How to Get a Discount on Your Car Insurance Policy by Safe Driving?

  • Author :
  • TATA AIG Team
  • Published on :
  • 01/12/2021

Driving a car in India is a challenge. The state of the roads, poor traffic management, increasing population, blatant disregard of traffic rules, etc., make it difficult for anyone, even the most seasoned of all drivers, to have a clean driving record. Further, the continuous development of roads and related infrastructure adds to the challenges of a driver. This justifies why a car insurance policy is mandatory in India. The objective of a car insurance policy is to ensure people are safe and everyone drives responsibly.

If you want to evade any third-party financial liabilities, follow safe driving practices and drive carefully. Safe driving practices not only benefit you when it comes to third-party liabilities, but they also help you save money on your car insurance policy.

When you buy a car online insurance, the insurer looks at several aspects before deciding the premiums. One of the critical factors that insurance companies assess when ascertaining policy premiums is your driving record. If you have followed safe driving tips, you can become eligible for a safe driving insurance discount. This lowers your car insurance policy premiums, making it a win-win situation for everyone.

How does Your Driving Record Affect Your Car Online Insurance?

Your driving record has a direct and significant influence on your car insurance policy. Your driving record is a holistic report of your driving history, including details such as your driver license, challans, fines, traffic defilements, speed violations, accident history and more. This record helps the insurance company assess your driving behaviour and estimate the risk associated with issuing you a car insurance policy.

A bad driving record directly influences your car insurance policy premiums, and you could end up paying higher premiums than someone who has a clean driving record and follows safe driving practices. A bad driving record can become an issue when you claim your car insurance policy.

Why do Insurance Companies Assess Your Driving Record?

Car insurance companies assess your driving record to understand the risk associated with insuring your car. A bad driving record with a high number of fines, traffic violations, speed defilements, accidents, etc., means you are a high-risk candidate for the insurance company. Therefore, you might be liable to pay a higher premium than someone who follows safe driving practices and has a clean driving record.

Your driving record not only influences your car insurance policy premiums but also affects your claims. A good driving record comes in handy when you make a car online insurance claim. If you have been following safe driving practices, the insurance company gives you the benefit of doubt and speeds your claim process. A clean driving record also lowers your chances of claim rejection.

Moreover, if you are buying a car online insurance plan, clean driving records can help you get a safe driving insurance discount. There is no specific percentage of safe driving insurance discounts, and it can vary from one company to another. The IRDAI (Insurance and Regulatory Development Authority of India) also promotes safe driving practices amongst insurance buyers. The regulator has taken several steps in this space to ensure people follow safe highway driving and other traffic rules. The IRDAI has proposed a hike in car insurance policy premiums for policyholders who do not follow safe driving practices or have a bad driving record. Those with a clean driving record will also benefit at the time of car insurance policy renewal.

What are the Benefits of Following Safe Driving Tips and Maintaining Clean Driving Records?

Several factors, such as traffic violation challans, accidents, speed defilements, dangerous driving, late payment of fines/challans, driving under the influence of alcohol, etc., have a direct bearing on your driving record. Following safety driving tips and maintaining clean driving records has its perks.

Some of the benefits of maintaining a clean driving record are:

1. Lower premiums: A clean driving record indicates safety for the insurance company. This lowers the risk associated with insuring your car, and the insurance company rewards you with a safe driving insurance discount when you buy a car insurance policy.

2. Renewal benefits: Maintaining a clean driving record also helps you during the renewal of car online insurance. If you did not make any claim on your car insurance policy in the year, you are eligible for a No Claim Bonus (NCB). The NCB will reduce your premiums during the car insurance policy renewal.

3. Ease in claims: A clean driving record translates into lower premiums during car insurance policy purchase and renewal. However, if you have been a good driver with a clean driving record, the insurance company also gives you preference when you make a claim. Your claim process is faster, and you enjoy an element of trust.

How to Keep a Clean Driving Record?

You can keep a clean driving record by following some simple steps, such as:

  • Safe driving tips: The most important trick to maintain a clean driving record is to drive safely. Be responsible on the road, follow all traffic rules, maintain your speed limit, park on authorised locations, etc.
  • Follow driving rules: Be diligent and follow all driving rules like driving with a valid license, holding a car insurance policy, not driving under the influence of alcohol or any other intoxicant, etc. Not following driving rules can result in hefty penalties and also spoil your driving record.
  • Pay all fines timely: If you are ever issued a fine, challan or a traffic ticket, ensure you pay the fine on time and keep the receipts safely for any future reference. Paying fines on time helps you maintain a clean driving record.
  • Check your driving record: Apart from being good at driving and following all safety driving tips, it is advisable to check your driving record at least twice a year. This will help you know if there are any violations registered in your name or if you are liable to pay any penalty, which you might have accidentally missed.

How to Claim the Safe Driving Insurance Discount?

If you have a clean driving record and follow all safe driving practices, you are eligible for a safe driving insurance discount. However, the safe driving insurance discount differs from policy to policy and from one insurance company to another.

You can get a safe driving insurance discount (up to 50%) only if you have a comprehensive car insurance policy. This discount is not valid for a third-party car online insurance. To get the safe driving insurance discount on your comprehensive car insurance policy, you have to ensure you maintain a clean driving record and do not make any claims. This is possible only if you follow safe driving tips.

Here is how the NCB works:

No claim year Discount on premium
First claim-free year 20%
Second claim-free year 25%
Third claim-free year 35%
Fourth claim-free year 45%
Fifth or higher claim-free year 50%

The year you claim your car online insurance, your NCB will be zero. However, in the subsequent claim-free year, you will be eligible for a 20% discount on car insurance policy premiums, and the discount cycle will start. To get NCB benefits, renew your car online insurance timely.

Overall, maintaining a clean driving record and following safe driving practices gives you significant benefits in your car insurance policy. Tata AIG motor car insurance also rewards its policyholders by offering safe driving insurance discounts up to 50% in the form of NCB. Buy or renew your car insurance policy online at premiums that perfectly fit your budget.

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