5 Easy Tips That Can Bring Down Your Car Insurance Policy Premium

In this fast moving world, one needs to have an effective medium of transportation. If individual transportation is taken into account, a car is considered as the best medium. In most of the families these days, one can find at least one car. As per the government norms, for an owner of the car, it is mandatory to have insurance of the vehicle as well as the third party.

Car Insurance  falls into the category of general insurance. Hence in the market, almost every general insurance company has different plans for car insurance. Looking at the variety of plans available in the market, it is not easy for a common customer to find the right insurance. When he finds that every insurance company has different premiums and features, it gets him confused. Hence, it is better to keep some tips handy.

Here are the tips that can help one to get the insurance policy at a low premium.

• Use deductibles: Different insurance companies allow deductibles at nominal rates. It can help one have additional security for the vehicle claim. Hence for a small amount, one can have huge benefits. While purchasing the policy, one needs to note various deductibles and go for the one that can help him reduce the premium to a considerable extent. However, while using the deductibles one needs to take a prudent decision as it can also lead to an increase in premium if unnecessary deductibles are added.
• Don’t claim for minor repairs: Many times, people think that when insurance is there, even a small amount can also be claimed. It is also very much true, but at the same time, such small claims can affect your record negatively, and you may lose the no-claim bonus also. Hence one can easily reduce the premium if there is no claim made for trivial issues. The company can take claims into account while offering the premium for the second year. If one has no claim, it can go in his favor as the company may not add any additional amount to the premium.
• Have better safety measures: The insurance companies also see if the client takes proper measures for the safety of the car or not. Those who use central locking and other systems may also get discount due to such safety measures as they can help the car to keep safe. In case the owner has a bad record of using the car and losing it in the past, he may have to pay higher premiums also as the company looks at it as a risk profile. Hence the more safety measures are taken, the more is the benefit in paying premium next year.
• Compare before opting: As a prudent customer, one needs to check the plans from various service providers. It can help him know many new features, cost of multiple features, and also make aware of the cost of insurance from different service providers in the market. One must not forget that the companies have to face competition, and hence, they are much aware of the rates that they quote. In case one wants to have an easy comparison, there are also third-party sites where, with one click, one can compare various quotes easily. Due to comparison, one can know the best deal at the lowest price and decide to go for one.
• Check no claim bonus: As a reward for not making any claim during the last year, the insurance companies offer no claim bonus, which can affect the premium of the next year to a considerable extent. This bonus helps one to reduce the premium of the current year. However, in case one has made one or more claims in the last year, he cannot be eligible for no claim bonus. This bonus is also transferable as the buyer who wants to change his service provider can have the benefits of the same from the new service provider also. This bonus is fixed and depends on various criteria set by the company, but yes, with the help of the same, one can end up paying a lower premium amount.

These are some of the ways with the help of which one may reduce the amount of premium, which he may have to pay for his car insurance policy.`