Authored by Jayant Row in Automotive, Insurance
Published on 04-03-2009

You need to shop around if you are looking for the best insurance rate for your car. The business has become so widespread and common that you would feel that almost any Tom, Dick or Harry is springing out from the bushes to offer you car insurance.

Get quotes from at least five different companies. Look for companies that are well known. Going on the net has simplified things to such an extent that you can practically get a complete quote online by just giving the company your details when you visit their website.

Once you have the quotes, look into the reputations of the companies you have contacted. The department of insurance is a good source of information and would let you know about the number of complaints that each of these companies has against them for settlement of claims. Look for the one that has the best record.

Consider the financial strength of each of these companies, from their published accounts available easily on the net. See if they have been rated by the requisite agencies and the reputation that they have.

If you are renewing your car insurance, see that you do this with at least 30 days still available on your existing policy. This way you would be automatically be offered better rates. In case you allow the policy to lapse, before renewing it, you run the risk of using the car when it is not insured, and in case you do have an accident during that time, you would find yourself totally liable to all expenses that such an event brings with it. A lapsed insurance can have premiums that are almost 20 to 30 percent higher, for its renewal.

Paying your premium in full is better than paying it installments; as such installments bring their own charges that could ultimately cost you quite a bit of extra money. On the contrary a full premium paid within ten days can get you a substantial discount if you ask for it.

Insurance companies have policies that will forgive your first accident in case you have an otherwise blameless record. Normally if you have an accident, and prefer a claim, your next premium on renewal could be quite steep. In case of first accident forgiveness policy, they would continue to charge you normal premiums on renewal even if you have had the first accident. The premiums for these are higher, and you need to seriously think whether you need this benefit.

Installing an alarm system or a vehicle recovery system on your vehicle could lead to an insurance premium reduction. However make sure that you install systems that are looked on favorably by the insurers. Installing this could also give you some peace of mind with the additional security that your vehicle now has.

Ask your insurance company whether they will give you a rebate if you are a qualified engineer or scientist. Some companies do offer such rebates to certain graduates, school teachers, and farmers.

So shop around, look for those discounts and rebates. Just make sure that you renew your car insurance before the day that your old policy expires.