10 Ways to Reduce Car Insurance Premiums

2. Raise Your Deductible

You can reduce your auto premiums by raising your deductible that is the amount you agree to pay out of pocket when you make a claim. By raising your deductibles from Rs.5000 to Rs.10,000, will make a significant difference and will also stimulate your insurance company to reduce your premium cost. You must first decide how much you can afford to spend out of your pocket, and then change your deductible accordingly.

3. Discount For Less Usage

Insurance companies will offer you discount on premium, if you make lesser usage of your car. The logic behind this is, when you make limited use to your car, the chances of you meeting a road accident will be quite low, which means lower risk and lesser claims. Mehrotra says, “Proper declarations about you could result in getting a lower premium. For instance, insurers may provide discounts for particular profession. E.g. Doctors.” As people in certain profession drive less and thus are assumed to be safe drivers.

Also Read: 5 Smart Money Handling Tips