For most car owners, the first insurance cover they buy is the one offered by the car dealer and they do not take the trouble of checking out what else is on offer as many dealers offer this cover virtually free.

These covers are similar to those offered by insurers but are priced in such a manner that the dealer ends up paying the premium amount instead of the customer. Often the customer does not realize that the dealer is seeking a huge commission on the renewal premium. Hence, a customer should look for premium deals available with the insurers instead of just accepting what the agent offers.

Many company websites offer online premium quotes. You can also refer to various sites which provide premium deals in line with your requirements. This is important since it may help you with lower premium payments.

Owing to intense competition, the premiums have decreased by almost 50 percent in the past two years. The insurance value has dropped to 1.5 percent of the car value as against 2 percent in 2008. But insurance companies have witnessed huge losses in this portfolio for the last one year. Thus, they have slowed down in certain segments.