What to Do To Lower Car Insurance Premium

lower car insurance premium

The cost associated with owning and maintaining a vehicle can be staggering. Fuel costs are increasing frequently and regular servicing is also needed. Another of these expensive expenses is car insurance coverage that goes simultaneously with responsible car ownership. Even though Indian car insurance companies estimate their costs differently depends on their own risk factor as well as their profit margins.

There are some important tips which are definitely help auto owners to decrease their auto insurance costs. Some insurers might place more value on one situation as compared to other and not to mention, there is no such guidelines which will give a great deal with every insurance company in India, but knowing the below mentioned facts which affect car insurance premium can surely help policyholders to save some handsome of money.

Group all insurance plans with single insurer because it could mean significant cost savings. In fact, insured may save as much as around ten percent on his auto insurance premium. Some insurers may also offer a better deal only in case person maintains other policies such as health or term with the same company.

It is possible to decrease insurance rates by avoiding unnecessary coverage which might double up with other plans. In case the car you own is tool old, then it is advisable to avoid the comprehensive insurance cover and opt for third party insurance only.

Insurance experts suggest auto owners to raise ‘excess payment’ value to cut down insurance premium. Insurance companies in India give better rates if their customers are ready to pay a specific amount of the loss related with a car insurance claim. Usually, the higher the ‘excess payment’ value, the lower the vehicle insurance premium will be.

Ask insurer how premium might be affected incase auto owner increased his ’excess payment’ to higher level. It also helps to make monthly premium more affordable. Shop around and get auto insurance quotes from other insurers every year just before insured person’s current policy is renewed.

Premiums can widely differ between insurance companies in India as their risk analysis depends on different factors like model, make, registration location, manufacturing year etc.

Carefully study the policy documents and ensure you understand the agreement completely. Majority of insurance companies in India provides ‘no claim bonuses to car insurance coverage policyholders who keep a ‘clean record’ for a certain time. So avoid claiming and save on premium significantly. Some insurers give special deals for low mileage cars to drivers who drive less than average kilometers per year. Less time on the street means fewer chances to be involved in an accident and it often translates into a lower premium.

AnchorSuch deals make the more sense especially for drivers who have a short commutes. Ask insurance service provider about possible deals in case person is an infrequent driver. Luxury or sports cars which are expensive to repair and popular with thieves can be very costly to cover. Some Indian car insurance companies might also provide deals for driving a hybrid or alternative fuel car.

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