Nobody wants to spend much money on car insurance, but then not everyone can negotiate with the insurance company. Negotiating in itself is an art and a bit of a challenge for most of us. But the truth is that the market is so competitive that most of the companies are themselves ready to negotiate.
Here are a few tips that can help you get a better rate with your car insurance provider:
Define Your Insurance Requirements
Before you go out haggling for cheaper insurance plans, find out your actual motor insurance needs. You need to understand the coverage type that you require. You could either pick a comprehensive plan or opt for accidental coverage. Select a basic liability coverage plan if your car is old or is not used often. Do not choose coverages that have minimal monetary value like roadside support. Although they are undoubtedly helpful, it’s not compulsory to add them to your insurance bill.
Compare Insurance Rate & Look for Discounts
The simplest way to save money on an auto insurance policy is to compare and pick a product that’s cheaper. Car insurance is necessary, but that does not mean it has to be expensive. A bit of research online can give you a list of products at the best available price. If you have already bought insurance, by comparing quotes, it would be easier for you to switch later and save on your monthly premium. While comparing, you can also get information on deals that various auto insurance companies offer.
Keep a Clean Driving History
Did you know that your driving history determines your car insurance rate? After all which insurer would want to insure a person with a record of uncountable traffic violations and accidents. Insurers may ask you to pay more or include a surcharge if you have a bad driving history. Some car insurance companies also offer discounts to the drivers who maintain accident-free records for an extended period. If you have a good driving record, then ask your insurer about discount offers for your clean history in the form of No Claim Bonus.
Pay in Advance
To get significant discounts from your auto insurance company, pay the premium in full on an annual or half-yearly basis. The monthly payment scheme usually costs a lot more in comparison.
Raise Your Deductible
A car insurance deductible is an amount of the claim you have to pay before your insurance covers the remaining part. Most people in India pick low deductibles which are easy on the pocket but contribute to higher premiums. Choosing the deductible wisely will make you more responsible for any damage less than the amount of your deductible. This will in effect lower your risk of a claim and reduce your rates.
Don’t Let Your Policy Lapse
You should never let your auto insurance policy lapse. Firstly, driving with lapsed policy means paying more for premium. Secondly, it exposes you to a risk of claim denial in the case of any unfortunate event during the lapsed period. Car insurance companies check the duration of your insurance period on a continuous basis as a way to calculate rate.
Just keep the above discussed points in mind cost while buying your car insurance. We are always here to help you compare the rates that are being offered by various companies and pick the one that suits your needs.