Taking a car insurance policy by paying a premium financially assists you in calamities like theft and accidents. Therefore, it becomes very important for you to find a policy that provides broader coverage and at the same time is budget-friendly. If you are planning to take insurance then follow these 10 tips to negotiate for a lower car insurance premium that goes with your budget.
1. Search for Better Car Insurance Rates
Many insurance institutes in the country offer various coverage at different budgets. You must research and find the best car insurance rates which satisfy your requirement by providing enough coverage and a premium that suits your budget.
2. Increase Deductibles
When you choose to pay higher deductibles you help reduce the liabilities from the insurer. The chances of paying a lower premium increase as you are ready to pay the amount required for repairs and other expenses.
3. Examine Your Coverage and Add-ons
You must consider the situation of your car and its age before choosing a comprehensive cover to reduce your premium. Avoid purchasing any additional covers along with motor insurance to increase the coverage as it will also increase the premium.
4. Go for Pay-as-you-Go Insurance
You can negotiate the premium by going for pay-as-you-go. The financial institutions in this case will charge you a premium based on the kilometers your car covers. This way you pay only for the distance that you have covered.
5. Prevent Modifications
Any modification in your car increases the value of your car which consistently increases the premium. Avoid unnecessary modifications to keep the premium lower.
6. Install Security Devices
By installing security devices in your car like theft alarms you can reduce the chances of your car getting stolen. Your probability of making a claim also reduces which builds your NCB and you get a discount from the insurance company for installing these devices.
7. Maintain Your Driving History
Your driving history must be clean if you want to pay less premium. Follow all the traffic rules and keep your record clean to get the discount.
8. Avoid Policy Lapse
If the renewal of the motor insurance is delayed from the grace period then the company charges an extra premium. Renewal of insurance before the expiry date will keep you from paying extra premiums.
9. Maintain a Good Credit Score
Some financial institutes decide the premium based on the credit score of the insurer. If your credit score is low you will be charged a higher premium, therefore you must maintain your credit score.
10. Utilise NCB
By lessening the number of claims you make you can build a No Claim Bonus, which has a discount on the premium. The discount can go up to 50% and thus not taking a claim can help you reduce the premium.
Applying these tips will help you negotiate to lower your car insurance premium. You can also speak to the customer care service or an insurance expert to find the best car insurance for your four-wheeler. The agent will help you uncover other cost-saving discounts that you can get from the insurance company.
