Life is unpredictable. Accidents and road mishaps can happen anytime. Responsible drivers can also suffer critical injuries due to negligence of the third party. It is crucial to have adequate protection. Car insurance is something unavoidable. One needs to insure his or her car as per the state law. Consumers want to save a substantial amount on car indemnity policies in spite of the policy being an economic reserve for future. Automobile indemnity premium differs from individual to individual. Service providers take into account several factors before finalizing the premium amount. Here, are some tips that can help the automobile owners in saving some dough on the premium amounts.

Credit Score: Insurance companies will inquire the owner’s credit score to assess his or her financial stability. Auto experts recommend stabilizing the credit score before purchasing an auto assurance policy. Prospective owner’s credit score is inversely proportional to the risk associated with him or her. Car owners with high credit score pay lower insurance premiums. One must ask for the free copy of the consolidated credit report before buying the insurance policy. This will help in knowing one’s standing the market.

Discounts: Service providers offer various discounts to drivers with terrific driving records or for new drivers that have passed their tests with excellent scores. One may avail discounts like meritorious students’ discounts or early retirement discounts. Employees nearing the retirement age tend to get reasonable discount on premium, as they will be using their car less than others will. If the car is installed with safety devices, then the owner will receive around 10-15% discount on the premium. Another brilliant option is to insure the car from the same service provider who has insured any other vehicle or house for the owner. One can also benefit from festive discounts and combination discounts from car dealers.

Deductible amount: Insurance premium depends on the cover provided the service provider. Insurer can reduce the premium amount by increasing the deductible or decreasing the protection cover. Deductible amount refers to the amount paid by the insurer in case of any damage to the automobile. One must note that reducing the deductible amount only increases the insurer’s liability in an event of an accident or road mishap.

Choose appropriate damage cover: Indemnity premiums are calculated based on the coverage offered. Individuals who opt for comprehensive coverage or collision coverage will have to spend an additional amount towards the auto assurance policy. One can always change the coverage policy at the time of renewal. Used car owners can opt for a third party assurance or fire and theft assurance, to reduce the burden.

Prospective buyers must shop around for quotes before purchasing a cover. It is essential to get quotes from different service providers and then compare them to get the best deal. One can also request the car dealer to use his or her tie-ups to get the best deals. Insurance is necessary to create an economic surfboard. Substantial protection cover provides peace of mind to the driver and passengers.

Author is Gagan Modi, who through website Mycarhelpline.com provides information on High Security Number Plates along with Maruti Swift Dzire price and second hand cars in delhi

Author is Gagan Modi, who owns leading Automotive sites – http://www.mycarhelpline.com and http://www.usedcarindelhi.com

Author Bio: Author is Gagan Modi, who through website Mycarhelpline.com provides information on High Security Number Plates along with Maruti Swift Dzire price and second hand cars in delhi

Category: Finances
Keywords: car insurance, tips to lower insurance premium