Tips to Lower Your Car Insurance Premium

Car insurance premiums are a key financial liability on your monthly budget. While it is a mandatory expense there are a few smart tips that can help keeping the car insurance premiums to the minimum.

Compare costs between different insurers

While choosing the insurance policy, take out sufficient time and effort to choose the most suitable cover for your needs. Compare the costs and benefits and obtain a clear idea about the insurance offerings and the current market pricing. This gives you more leverage to negotiate with your insurer. If you are purchasing car insurance online, make use of aggregator websites to compare and contrast between the different insurers.

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Increase the deductibles

Deductibles refer to the amount that you can pay from your pocket before the insurance kicks in. Raising the amount of money that you can pay for the claim decreases the monthly premiums. For instance raising the deductible from 500 dirhams to 1000 dirhams can save up to 30 per cent on your insurance premiums.

Choose a one-stop shop for all insurance needs

Some insurance firms offer better deals when you buy more than one insurance plan with them. You may choose to combine your personal, house or health insurance with your motor insurance and thus obtain higher discounts. Group insurance policies through employers, social communities or alumni groups may also influence better priced insurance deals.

A good credit record may lower your insurance premiums

A good credit record is a key factor that determines your insurance premiums. Insurers believe that individuals with a track record of managing finances appropriately with lower credit balances are more responsible drivers. Therefore they use this information to price your insurance policies. A well maintained clean credit record enables better discounts on your insurance plans.

Reduce the insurance cover for old cars

The type of car you buy also influence the amount of premiums you pay. A new car with most advanced specifications demands a comprehensive coverage. If you are driving a second hand car or looking to buy a newer model, you may consider dropping the collision and comprehension coverage during the insurance renewal. Third party insurance plans help save you a considerable amount of money on the monthly premiums

Take advantage of the auto safety equipment

 

Most car insurers offer higher discounts for cars that have additional safety features like the anti-theft alarm, anti-lock braking system and so on. These safety features give you a better control over your vehicle and also reduce premium costs remarkably.