18 ways to reduce car insurance premium

Like everything else that gets dearer by the day, car insurance premiums are also getting more and more expensive these days. There are a large number of car insurance companies in the fray who have been offering different types of insurance policies with varying premiums and facilities to lure you. Sometimes, it becomes difficult to choose the best insurance at the lowest premium.

The following tips will help you choose the right car insurance and save money in the process.

Tip 1: Compare prices

Before buying your car insurance, it is better to compare the premium rates and benefits offered by various other insurance companies. A large number of insurance companies have their websites. Plus there are many more sites where comparison of car insurance premium charged by various companies can be done under one roof. If you have been happy taking the same policy for the same car for a few years now, it is still better to try some other major car insurance companies. May be you come across companies offering still lower rates and discounts.

Tip 2: Choosing the right vehicle

Insurance companies usually charge hefty premiums for sports vehicles and fancy cars because of the increased risk involved in possible thefts and expensive repairs in case of accidents. So it is better to go for a normal car if you want to keep your insurance premium low.

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Tip 3: Discount for less usage

If you use your car only sparingly and use other modes of transport often, there are less chances of an accident and therefore, some insurance companies offer a discount for such cars. You can try this option if your car falls in this category.

Tip 4: Drive carefully and pay less

If you have an unblemished record of good driving, certain companies offer a discount in premium as there is less risk involved if you are a careful driver. That sounds reasonable.

Tip 5: Pay now and claim later policies

There are some vehicle insurance policies where you have to first pay yourself for the injury or damages and then claim reimbursements from the insurance company. In this case, the premiums are low but it is not necessary that your claims will be passed by the company in full.

If you are opting for such a scheme, work out how much you can pay yourself in such an eventuality.

Tip 6: Discount for parking in garages

If you are in the habit of parking your car in the garage overnight, there is an element of extra safety against theft. Based on this safety aspect, some companies offer a discount in premium rates.

Tip 7: Take all your insurance policies from one insurer

You are likely to get a cheaper premium if all your insurance policies like health, personal and household policies are taken from the same company.

Tip 8: Discount for safety devices

If your vehicle is fitted with safety devices such as airbags, safety locks and antitheft devices, there are less chances of making a claim from an insurance company. So the premium for safe and secure vehicles is comparatively low.

Tip 9: More cars, less premium

Some insurance companies offer a discount if you have more than one car and you club them together from the same company.

Tip 10: Low premium for good students

Some companies offer a reduced premium for bright students as a reward for their intelligence as they are expected to refrain from rash driving.

Tip 11: Discount for passing advanced driving class

If you have passed an advance course for driving, some companies offer a reduced premium as an added advantage for safe driving.

Tip 12: Pay in lump sum

You are likely to get a discount if you pay the premium in lump sum and not in monthly installments.

Tip 13: Remove coverage for old car collision

The reimbursement for an old car in case of damage will be according to its present value which sometimes, will be negligible. Therefore, it would be better to remove the collision coverage altogether to save some money.

Tip 14: Discount for married people

A married person is more responsible and less likely to drive rashly and cause accidents. Based on this aspect, some companies offer a low premium for married people.

Tip 15: Do not make frequent small claims

If you make claims frequently for every small dents and scratches, the premium is likely to be higher for the next year.

Tip 16: Discount for additional driver

Adding an additional driver in your policy who is well versed in driving and having a clean driving record, could help in reducing the premium to some extent.

Tip 17: Go for a standard vehicle

If your vehicle does not conform to certain standards, some companies refuse to pay claims. So your vehicle should be of some acceptable standards for insurance companies.

Tip 18: Get a brand new car

Another option could be to go for a new car with low insurance premium. You can compare the prices online from their websites.

The above tips could definitely help you decide the right type of insurance with the right premium with the right insurer.