5 tips to get better premium offers on car insurance

The cost of car insurance varies from one insurer to another.

Partnered January 17, 2018 16:15:55 IST
5 tips to get better premium offers on car insurance

The landscape of car insurance is changing all over the world. With the increasing number of insurers in the market, there is no shortage of good offers for new and used car insurance. Insurance companies are coming up with innovative ways to attract new customers and widen their market share. Due to this, customers are benefiting a lot from companies through various offers.

5 tips to get better premium offers on car insurance

One of the benefits offered to customers comes in the form of premium discounts. When you subscribe to a car insurance policy, you could narrow it down by considering the ways in which it allows you to save premium costs. The following tips will guide you on how to save money on car insurance premiums.

Do your research

The cost of car insurance varies from one insurer to another. You can get quotes from different insurers and compare them before coming to a final decision. You can use the service of a neutral third-party insurance aggregator like Bankbazaar to compare the cost of policies available in the market. Once you have narrowed it down to a few service providers, you can contact the company directly and clarify any doubts you have about their insurance products. When you compare car insurance online, do not focus only on the price. In many cases, the price is relative to the service provided. Consider the features of car insurance and the stability of the insurer before coming to a final conclusion.

Maintain a proper driving record

The quality of your driving will play a major role in the cost of your car insurance premiums. Even during car insurance renewal, various factors are considered before arriving at the premium price. If you have a near perfect driving history with no accidents or major traffic violations, you could get a better deal than the average user in the market. The logic here is that safe drivers do not contribute to any major risks for the insurance company. Hence, they reward quality driving with lower insurance premiums. Most insurance companies focus on the driving record of the applicant while calculating premium charges. Moreover, the previous claims you have made with an insurer is considered while evaluating your driving history.

Refrain from small claims

The NCB benefit offered for car insurance is similar to health insurance. When a claim is made with an insurer, the no claim bonus (NCB) is reset. For a minor insurance claim, you may run the risk of losing out on NCB. With a substantial accumulation of NCB over a few years, you can get huge discounts on insurance premiums. If the damage can be fixed within a few hundred rupees, it is not a wise idea to file for a claim with the insurer. Even if you don’t have any cash, these minor expenses can be paid with the help of a credit card. Every filing made with an insurance service provider is recorded in the name of the insured. When you apply for car insurance next time, this will be accessed by the insurer and used as a factor in determining the premium charges.

Opt for higher voluntary deductibles

If you are confident about your driving, you can increase the deductibles and lower the overall premium charges on car insurance. Deductible refers to the amount you are willing to pay from your own hand when a claim is made with the insurer. Higher deductible means that an insurance company has to pay less for accidents and other vehicular damages. Hence, the premium charges are lower. However, you must be cautious when choosing deductibles. Opt for higher deductible only if you are confident about your driving skills and can afford to spend additional money to take care of the expenses.

Enhance car safety features

This is another significant way to reduce the premium charges on your car insurance policy. Insurance companies evaluate a lot of risk factors when assessing the premium charges for a policy. A comprehensive car insurance plan protects a car from theft. If the car has plenty of anti-theft safety features, it minimizes the risk for the insurer when it comes to providing compensation for losing a vehicle. This is one of the reasons why it is necessary to have proper protection against theft. Another factor to be considered here is the safety features available for the driver and passengers. Safety features like air-bags and seatbelts must also be intact in order to get discount on car insurance premiums. With proper safety features, the overall risk of the insurer is minimized and this gets transferred to the customers in many cases.

With the range of products available in the market, it is no longer difficult to obtain better premium offers on car insurance. Make sure that you get a proper discount on the overall cost of car insurance. With the premium amount saved, you can take a few add-on covers like zero depreciation cover to enhance the protection offered for your vehicle.  If you follow the above measures, it could significantly enhance your chances of getting better premium rates.

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