Tips to negotiate a lower car insurance premium

The first step that you could take in this regard is comparing insurance rates. There are plenty of insurers in India that are offering rather good rates these days. However, they may not provide you with the kind of coverage that you are looking for within your budget. This is why if you want to buy the best policy you must research properly beforehand. One of the most efficient ways to find the best motor insurance is to compare the rates on the internet.

However, to do this effectively you also need to understand what you are looking for from your car insurance.

1. Asking for higher deductibles

If you want car insurance lower premium this is something that you must be prepared to do. The term car insurance deductible refers to the money that you voluntarily agree to pay out of your pocket for various repairs and other costs associated with maintaining a car. If you go for zero deductible the insurer would cover all the expenses that we have alluded to above. However, if you choose any amount in that regard the insurer would only cover the amount that you have not paid while settling a claim.

2. Dropping comprehensive coverage for older cars

Are you serious about getting low premium car insurance? Then you must not choose comprehensive coverage for an older car. It is very important to consider the condition that your car is in when you are looking to insure it. So, if your car is an old one you can choose a basic third-party policy rather than going for a comprehensive policy. This will help you save on the premium that you have to pay for your car insurance. Let us say your car is older than five years. In that case, buying comprehensive coverage for it does not make any financial sense.

3.Avoiding making excessive modifications to your car

If you know what factors determine your insurance premium this is something that you would not do. This is because with every modification that you make in this regard your car becomes more valuable and that means you have to spend more money to insure the car. So, if you want to spend less money on insuring a car, avoid making any modifications to the car unless it is absolutely necessary to do so.

4.Reducing add-ons to save premiums

This is also a good way of lowering car insurance rate. Make sure that you do not buy add-ons that you do not need with the policy. When you buy car insurance the insurers offer you these add-ons which are extra coverage facilities that are not there in the actual policy. Please remember that the more add-ons you include in your policy higher would be the premium that you have to pay for it. This is why you should only choose ones that are absolutely necessary for you.

5.Keeping a clean driving history

Among all the factors that affect car insurance rates your driving history ranks as perhaps the most important one. You can be sure that if you have a history of breaking traffic rules and accidents on your driving record you would not get a policy from most insurers, as it is. Even in cases where you do get one you would have to pay a high premium for the same. So, you must keep your driving record as clean as possible. In fact, if you have a good driving record you would get a discount on your car insurance.

6.Not allowing your previous policy to lapse

This is also one of the most crucial factors affecting insurance premiums. The car insurance policies normally expire within a year of buying them. The only exception to this is when you have a totally new car that is being covered for three years. So, once it expires you have to renew it so that you can claim the coverage that you want for your car. Thus, if you let the policy lapse your insurer would charge you an extra premium for the period when the policy was in that condition.

7.Taking advantage of NCBs

Do you really want to know how to reduce car insurance premium? Then you should know that NCBs (no-claim bonuses) are a great way of doing so. The term NCB refers to the discount that you get on your premium when you renew your policy. This is normally provided when you did not make any claim in the previous year on the same. So, if you can pay for the minor repairs that you have to make to your car do so – do not file a claim on the same as that would help you build your NCB.

8. Installing security devices in your car

This is a surefire way of reducing your car insurance premium. The term security devices in this context implies anti-theft devices that could make it hard – if not impossible – to choose your car. This will also mean fewer – if any – claims on your car insurance policy. This is why insurers always offer discounts to car owners who install these devices in their cars. They reduce the liabilities that such companies may have in these cases. There are several options that you can go for in this case such as anti-theft alarms, steering wheel locks, and brake locks, to name a few.

9.Switching your insurer

If you want to lower the car insurance premium you can always change to an insurer that operates on a pay-as-you-go policy. Are you an occasional driver? Do you drive your car only over short distances? In that case, these insurers can be the best option for you. These insurers usually calculate your premium based on the total distance you are covering with a car while you are covered by the policy. Having a good credit score is helpful in these cases as well.