Owning and maintaining a car costs a lot of money, but it doesn’t have to leave you broke. Car insurance premiums are getting increasingly expensive. Before buying a new vehicle, find out how much it’s going to cost to insure it. Premiums can vary widely based on the make, model and year of a vehicle. There are the following steps that can do to minimize or reduce the burden on your wallet.

1. Shop Around for Better Quotes:
If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. It makes sense to obtain quotes from other companies just in case there is a lower rate out.

2. Compare Premium:
All general insurance companies offer online covers. Based on the age, driving record, profession, and various other criteria specified by Insurer avail car insurance premium discounts.

3. Opt appropriate Coverage:
A car insurance policy is typically a pre-defined set of benefits. Nevertheless, avoid unnecessary add-ons you do not really need. This helps lower the car insurance premium to some extent.

4. Avoid additional fittings: Your car insurance premium is generally computed at basic level coverage based on vehicle value, vehicle age, fuel type, etc. Any additional fitting which doesn’t come as factory fitted attracts a higher premium.

5. Raise Deductibles:
Slash your auto premium drastically by raising your deductible component. Decide how much you can afford to spend out of pocket; then, adjust your deductible accordingly.

6. Don’t Claim Small Sums:
You are entitled to a no-claim bonus (NCB) for every claim-free year. Even for the smallest claim you make, you lose this distinct advantage which can lower your car insurance premium up to a maximum of 50%.

7. Avoid Policy Lapse:
Once your car insurance policy lapses, you may not qualify for NCB that you would otherwise eligible for. To renew your car policy without break and within 90 days from the expiry date.

8. Transfer NCB from Old to New:
Auto insurance is linked to the person who buys it, not to the car. An advantage of not making a claim is that the bonus accumulated is transferable to the new car you purchase.

9. Install Safety Features:
Installing safety features/anti-theft devices like locks for the steering wheel and gear, airbags, anti-theft alarms, etc. could fetch you a discount on your premium. Further, people linked with associations like AAI or the WIAA, can get special discounts on premiums.

10. Reduce Coverage on Older Vehicles
If your car is old and paid for, consider eliminating your collision coverage. It is the coverage that pays for any damage caused to your vehicle, and it makes up a big portion of your insurance cost.

11. Concession for Laid-Up Vehicles
Vehicle laid up in garage and not in use for a period of not less than two consecutive months will be entitled to a pro-rata return of premium for the period during which the vehicle is so laid up.

12. Long-Term Cover for New Car:
For your new car, a long term policy of three years is entitled for OD discount. Long term policy is also eligible for discounted Third-party premium as decided by IRDAI.

Some insurance companies are also offering discounts based on the profession of the insured (viz: doctors, teachers, lawyers etc). But beware of car insurance firms who claim to offer ‘free’ insurance – this is usually free only for the first year and cannot be customized.