Five tips to reduce auto insurance premium

Installing safety features in your car and forgoing small claims are among the several ways in which you can cut down on your annual premium

Raise Your Deductible

You can reduce your auto insurance premium by increasing the deductible component, which is what you pay when you make a claim.But, pay only as much as you can afford. If you pay too much, the purpose of insurance is defeated.

Don’t Claim Small Sums

If you buy auto insurance and don’t make a claim, you will be entitled to a no-claim bonus (NCB) for every claimfree year. Skip the trip to the insurer for small issues like a broken tail light. In fact, the local mechanic may lower the repair costs.

Transfer Your Bonus

Auto insurance is linked to the person who buys it, not to the car.The agent may not tell you this. An advantage is that the accumulated bonus can be transferred to the new car you buy. So when you sell the car, retain the insurance in your name.

Compare Premiums

All general insurance companies offer online covers. Auto firms also provide `free’ insurance, but don’t be fooled. It is typically free only for the first year and you cannot customise it. Also, if you modify the car, the insurance will not cover it.

Anti-theft Aids a Must

It is critical to install safety features in your car. By buying gear lock, steering lock or an anti-theft alarm, you can also reduce your annual insurance premium by 5%. If you are linked with bodies such as WIAA, you can avail of special discounts.

Curated From :  Five tips to reduce auto insurance premium – economictimes.indiatimes

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