Today there are number of factors which will determine the premium of the insurance for your car. Although you don’t need to understand the technicalities but it’s a good idea to understand a few basics.

1. NCD – No claims discount. If you are planning on changing your Insurance provider or even renewing with the existing provider, make sure you request for the NCD letter. This letter will entitle you to discounts with various Insurance companies and you will be able to save anywhere between 5% – 20%. The longer you have made no claims the bigger the discount up to 20%, so why not?

2.DO YOUR HOMEWORK – Don’t just sit and accept a premium offered to you. Go to a reliable comparison site and have a look at various premiums being offered. Sometimes there are promotions running with certain Insurance companies which you can take advantage of.

3.VALUATION – Keep in mind that the higher you value your car the higher is the valuation. That doesn’t mean that you can value it as high as you want. Most insurance companies have a target range for each car which the price has to be in between. Generally, a rule of thumb is that you take the original price and deduct 15-20% on an annual basis and you will get a good idea. However you can check online and see what value different insurance companies will quote for your car.

4. INCREASE YOUR EXCESS – If you are confident in your driving abilities and declare yourself as a safe driver then you can request to have a higher Excess. The Excess is the payment you need to make in the event that you have an accident and it is your fault. However, this procedure is accepted with a few Insurance providers and sometimes takes longer to issue the policy as it has to go through an approval stage.

5. EXTRAS AND ADD-ONS – Be careful when there is a price difference coming from different Insurance companies or websites. The cheapest is not always the best. If you have no intentions of driving to Oman or other GCC countries, there is no need for Oman coverage. Remember, nothing is free, everything has its own price.