Tricks that work

Negotiations :

1. How to reduce your vehical insurance (Scenario India) :

If you own a car or a two wheeler in India you will have to pay insurance every year.
You can reverse play the tricks companies apply to collect a high premium.
You will start getting calls from the Marketing Firms about the renewal of your vehicle insurance approx 2 months before the renewal date with a discount offer.

1. Two months is too early to renew so ask for a detailed competitive quote possible with a break up and pospone the payment asking them to call later. Note the lowest quote you get from the marketing companies. Compare the same over various sites online and compare what cover are you getting.
2. Dont fall into the discount trap, you will get a better discount when you are closer to the renewal date.
3. Remember you need to close the deal before the renewal date.
4. Wait to get other offers specially from the Insurance Company directly
5. Max depriciation applicable in India is 15 % on WDV of the vehicle. The trick these Ins companies use to collect higher premium is by valuing the vehicle higher by depriciating it lowe like 10 - 12% or in some cases like two wheelers not depriciating at all. You can ask them to apply full 15% depriciation from last years value every year and ask them to reduce the value another 10% if there are any minor scratches etc for which you have not claimed.
6. Value of the Car only matters in case of Vehicle theft or a complete loss. Probability of such a event happening is comparatively very low in the metros. Apart from this all your accidental claims will be lower than the total value.
7. You can get approx 25+% No Claim Bonus
8. You can get approx 40+% Loyalty Discount
9. You can ask the Insurance Company to pass on the premium benefit the Mkting company would have got to you. This could again reduce be another 0.2% of the Vehicle value. For example if the car is valued at 3 lacs then the premium would reduce by approx Rs 500. If they dont agree ask for schemes such as 1 yr free service etc.
10. Check the detail break up and remove any unnecessary components like Ins for Paid driver if you are not using one.
11. And ask for a co-payment discount. Generally Ins companies give a co-payment discount if you agree to pay Rs 2500 - 3000 during a claim. Anyways in most of the policies rubber, elecrtic and plastic parts are not covered so you usually end up paying partly. You can use this if you think you are  a safe driver.
12. Pay by credit card over the phone and get a 15 days free credit.

So if for example you car is valued at Rs 3 lacs and your initial insurance premium is coming to Rs 6900. This will reduce your overall premium by approx Rs 1100 - Rs 1250 which comes very easy just comparing and negotiating over the web and phone with minimum time and effort invested.

2. How to use credit cards for your benefit.

1. Always buy a credit card with no annual fees or hidden charges.
2. Citibank and SBI cash back credit cards are good. These provide 5 - 10% cash back on every transaction and not just IRCTC or Free surcharge on Petrol Pumps, Free tickets on bookmyshow.com
3. Never buy a insurance policy on the credit card or schemes covering you for loss of card just dont maintain any balance in the bank account linked to the credit card. If it gets lost just call the call center to block it. If a fraud is already made then make a police complain and go broke. You need not pay the bank till the case is resolved. If you have a linking bank account with a balance your account can be blocked for withdrawl by the bank for the fraud amt so dont keep bal instead transfer or pay from another bank always.
4. Always keep a limited credit limit to the amount you actually plan to use in 3 months to reduce the financial magnitute of any fraud.
5. Balance Transfer whenever possible.
6. Buy a cash discount credit card that gives immediate cash discount compared to the ones that give points.
7. Pay all ur utility bills using credit card and get a free 15 days credit. If possible set Auto Pay for utility bills.
8. Set Auto Pay / ECS for your credit card payments and always make full payments.
9. Try to avoid carrying more then 2 credit cards in your purse.