Discount on Insurance Premium: Ask the dealer for a discount on the insurance premium of your new car. Insurance providers offer a margin of up to 40% to dealers. You can ask for a discount of up to 30-35% on insurance premium (excluding third-party liability and service tax). If the dealer is hesitant in giving you discount on your car insurance, ask him if you can get it done on your own. Please note the dealer has the right not to sell you a car if you don't opt for insurance from him. However most of the dealers will not create a fuss around it.