Car Insurance 6 Superb tips to obtain low premium rate

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By: Good Nelly
on 25th Apr,2012

So, install a burglary alarm in your car.

Are you looking for a suitable
car insurance policy through which you can get the required coverage at the
lowest cost? Here are 6 tips by following which you can reduce your car
insurance premium significantly.


  1. Raise your deductible - You can
    raise your deductible to some extent in order to reduce your insurance
    premiums. Deductible is the amount which you'd have to pay out of pocket before
    the insurance company pays the coverage amount.
  2. Pay your premium annually - Even
    if it's a little tight on your budget, try to pay your car insurance premium
    annually. The car insurance company will give you an additional discount if you
    do so. You can opt for bi-annual payments if you cannot afford to pay the
    premiums once a year.
  3. Compare policies before buying
    one -
    Never purchase an insurance policy from the company with which you've
    first spoken to. They may offer certain discounts, but you don't know whether
    or not some other insurance company can offer you the similar coverage at a
    much lower price. However, you shouldn't choose a policy just because it's the
    lowest cost; you should compare the coverage and the cost to buy the most
    suitable policy.
  4. Install safety devices in the
    vehicle -
    The car insurance premium will get lowered if you install certain
    safety devices in your car. So, install a burglary alarm in your car. Also,
    before leaving your car in the parking lot, double check whether or not it's
    locked properly. This is because your insurance premium may shoot up if you
    file a claim. So, it's always better to save your car from being stolen.
  5. Ask for discounts which you are
    eligible for -
    You are eligible for certain discounts which you should mention
    while buying your car insurance policy. For example, you'll get discount if you
    have a clean driving record. The insurance company will also offer you the
    required coverage at a reduced rate if you drive less than average number of
    miles every year.
  6. Get multiple policies from one
    insurer -
    One of the best ways to reduce your car insurance premium is to get
    multiple policies from the same insurer. So, you can buy your home insurance,
    life insurance, health insurance along with your car insurance policy from the
    same insurance company. However, before doing so, check out the financial strength
    rating of the company, so that you're sure you'll get the dollar amount from
    the insurance company when you need it.

Do you know your credit score
also plays an important role in deciding the insurance premium of your vehicle?
Yes, it's true. You might have to pay a higher premium if your credit score is low.
So, try to maintain a good credit record and get discount on your insurance
policy, and enjoy driving your desired vehicle.

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