When it comes to car insurance, what is a good deal for one driver might not be the best for another. Car insurance premiums depend on a number of factors, including age, model of your car, modifications and trims, usage, driver’s occupation, and more. While it is mandatory to have car insurance, sometimes the hefty premiums can burn a hole in your pocket. Here are some tips on how to get the best deals on car insurance.

Pay the annual lump sum amount
Paying your insurance premium in installments seems like a good idea at first, but you might end up spending more. When you choose to go with the monthly route of payment, you are, effectively, taking a loan from your insurance company. And like most loans, you will have to pay interest. Some insurers charge as high as 36 percent. When buying an insurance policy, make sure you compare the monthly premiums offered by the insurer and not the lump sum amount – especially if paying monthly installments is your only option.

Haggle for better deals instead of auto-renewing
One of the top tricks on how to get the best deals on car insurance is to ask for them. Letting your insurance policy renew itself automatically might seem tempting, but you may end up paying for this convenience. The premiums offered by the insurers when they auto-renew policies are not their best price. If you negotiate for better prices, you can save more money.

Modifications can increase or decrease the premiums
Think twice before adding a new trim or modification to your car. Most insurance companies consider cars with modifications like sound systems, custom painting, etc., more likely to be stolen. Not just the flashier kind, but even the simplest add-ons, like new alloy wheels, can increase the insurance premiums. On the flip side, adding anti-theft devices like alarms, trackers, and immobilizers helps reduce the cost of premiums.

Get multiple cars insured from the same company
If there is more than one car in your household, insuring them together might be cheaper. The insurers give you the option of linking several policies or covering multiple cars under a single one. Either way, it’s a simple trick to get a discount.

Increase your excess (Deductible)
Another great answer to the question, ‘how to get the best deals on car insurance?’ is to have higher deductibles. In case of a claim, some amount is payable by the driver’s side. This amount is called the deductible or the excess. Agreeing to a higher deductible will help lower your insurance premium. However, it is recommended not to have very high deductible amounts as the car insurance then becomes pointless.

Maintain a good credit score
Often, insurers will do a background check on your credit and loan repayment history before offering a quote, especially if you choose to pay by monthly installments. One of the best ways on how to get the best deals on car insurance is to maintain a good credit score. Although a bad credit score may not increase your premium, the insurers might ask for a lump sum payment instead of monthly installments or ask you to pay a security deposit.