The importance of motor insurance has been increasing after it becomes mandatory by law for every car owner. While there is no escape from auto insurance, applying some efforts to lower the premium can be helpful to some extent. You might have heard that your premium rate is depending on certain parameters. However, breaking the tradition of four parameters prevalent earlier, now a verity of factors influence on your auto insurance premium rate. Here is sneak peek on 8 ways you should consider if want to lower the premium-
Get Multiple Quotes Before Buying Always shop around. Don’t just stick to one and pay. There are a host of websites which provide comparison tool. You can compare the plans accordingly and select the one with the cheapest premium. Pay High Deductible If you are willing to go a step ahead with deductibles, you can wind up saving a big amount on your rates. If the customer willingly bears a stipulated amount of claim, the insurer will pay only for the damages, which excess the deductible limits. Add Safety Devices Premium depends on risk. Bigger the risk, higher the premium you pay. By installing safety devices, you can lower the risk to your vehicle and thus reduce the risk perception of the insurer towards the vehicle. At the time of purchasing auto insurance, you should provide the complete information about the vehicle including the safety devices if installed any such as anti-theft alarm, air bag etc. Moreover, by providing this much information you can avail 2-5% of discount in premium. Increase Your NCB Is your premium due for renewal? Well, you can earn discount on ‘own damage premium’ by not claiming you policy. Because for every claim free year, you are entitled to avail a discount called No Claim Bonus. The slab of NCB increases every year and may goes up to maximum of 50%. The best part is the discount earned stays with you even if you sold out the vehicle. Or if you want to change the insurer, you can carry your earned NCB along with. Provided you need to file the claim within 90 days from the expiry of your old policy. Register in Automobile Association If your name is registered with renowned Automobile Association, you can avail discount on basis of this. You can avail discount up to 5% on own damaged premium. Go Online While Renewing Renewing your policy online, you can avail some discount in premium. Some insurers encourage renewing your car insurance online. On online process, the insurer saves a considerable amount on processing and distribution costs, which is offered to the customers. Maintain Good Credit Score Your credit score plays an important role when it comes to insurance premium. Insurance companies have started considering credit score as a determiner to set premium rate. Maintaining a good credit score, you can ensure getting a best deal. Group All Your Insurance with One Insurer By choosing one insurer for all your insurance related deals like auto, health, home etc.you can earn a handsome discount upto 10% of your total premium. So, reducing your car insurance premium is not a rocket science. Well, this is not the comprehensive one. There are many other factors and these are just some of them. As there is no dearth of car insurance plans available in the market, you should be very meticulous while purchasing one. Always, consider the best deal with lower premium, which fulfils your requirement. Again, it is advisable to pick a company that can assure financial stability and come up with your expectations!
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