The used car market virtually stands on bargaining today. The more you haggle, the lesser price you pay. But nobody had thought that bargaining is possible with car insurance companies as well. This is now possible as the price control have been removed from car insurance premium on the orders of the Insurance Regulatory and Development Authority from this January.

Now the parameters for charging car insurance premiums will be closely scrutinized by the general insurance companies. The parameters are geographical location, age of the vehicle, model, and car manufacturer and also past claims. Those who have not claimed any compensation in the past will be offered discounts! Even car models which generate lesser claims will be awarded discounts! Car companies have brought in radical changes in safety and security of occupants and driver. Some of the new changes in car safety features are side impact beams, Anti-lock braking system, electronic brakeforce distribution, electronic stability, air bags, frontal or rear crash zones and several others. Considering these changes, insurance companies are awarding points for those who have no past claims.

Discounts are being offered on models with lower claim ratio. The discount on premium could be from 20-40 percent. The company is aggressively promoting the new premium regime. Public sector general insurance companies are yet to announce a discount. It looks like the insurance segment is gearing up to match the pace of the growing car market. The companies are in such a hurry that they are enforcing no strict rules on discounts. The car owner can actually bargain for a high discounts in premium while the insurance coverage remains the same.