There are a lot of changes happening in the insurance industry these days. Insurance companies are crunching a lot of historical data and coming out with policies or strategies to benefit good customer set. These are based on new parameters that they have found to behave better overall. As a normal policy owner/renewer , it will be good if you know them well to take advantage of these.
1) Voluntary deductibles : This means that customer opts out of minor claims. This essentially says that customer is willing to get minor claims settled by his own, without bothering the insurance agency. When this happens, Insurance agency will be more than willing to give him/her additional discounts. It does so, because a lot of costs overheads are saved, if minor claims are not managed by it.
2) Safety Features : Most of us do not put emphasis on safety features which are installed in your vehicle, while declaring for insurance. This results in the normal premium changes for insurance. If you can declare anti-theft device, and other safety features, which you feel are resulting in reducing the probability loss or accident, for example air-bags, then upto 5% additional premium can be lowered by the insurance companies.
3) Automobile association : Membership of automobile associations indicates that the owner is interested and knows well about automobiles. This gives the insurers additional comfort about the well being of vehicles, in that owner’s hands. Hence, for such customers, they are open to reducing the premium on “own damage”. This clause is often not used by general public and you should enquire about it with your insurers.
4) Buy/express interest online. – When you express your interest online for insurance, you reduce the insurer’s cost of reaching out to you. This is applicable even when the actual purchase is not online, but just the intent is expressed and the closure happens only after you meet the insurance agent in person. Hence it can be the best of both world, you can grill the insurance agent with your queries, and still take advantage of the savings done by the insurance firm.
5) No claim bonus : This is one of the most obvious methods of reducing your insurance premiums. This also has been covered extensively in our articles. You can read about it in complete detail by surfing the links below.
Apart from these big 5 headers, there are also sections like make and model of the vehicle, driver’s age and profession, city of vehicle registration etc. All of these goes a long way in ensuring that you get the cheapest rates available for your car or motor insurance premium.