Car insurance is an indispensible expense every year. Find out the factors that affect the premium.
Gone are the days when a four-wheeler was considered something only the rich could afford. Thanks to affordable cars and much more affordable EMIs, four-wheelers have become accessible to most individuals. With ownership, however, comes the responsibility: Car insurance. Every person who owns a vehicle must buy insurance, which is mandatory with any new purchase.
If you are thinking about getting your vehicle insured, you need to take into many things such as which company offers the best policy, and who offers the policy with affordable premium, and are there any add-ons that come with the insurance policy. Here we try to help you choose the insurance policy at the best rates for your car.
Determine whether the insurance policy provides coverage for collision and other damages. If your car is new, a comprehensive package is required. If your car is older and of low value, it might not be worth the expense.
Purpose of vehicle:
Whether you use your vehicle for personal or commercial purposes also impacts the insurance premium. If you are using it for commercial purpose, the rate may be higher than in the case you were using it as a personal vehicle.
Model of the car:
If the car that you are getting insurance for is quite fancy or an expensive sport car, the rate of insurance premium will be high. Similarly, imported models are also charged higher insurance premium.
If you have chosen minimum liability coverage to insure your car, you will save some cash undoubtly. But for the unseen risks associated with the future, it is wise to get more than the minimum available coverage.
Vehicle Engine and Seating Capacity
Premium rates are decided by the vehicle engine and seating capacity. Your friend and you may own mid segment cars, but if you are paying more premium, the reason can be that your car has a 1,197cc petrol engine while your friend is using a 1,248cc diesel engine. Similarly, a person who has a five-seater SUV pays less premium than for an eight-seater SUV of the same model.
Location of the office:
The location of the registration office, where you get your vehicle insured also plays an important role in deciding the rate of insurance. For example, India has been divided in different zones:
Zone A: Delhi, Mumbai, Chennai, Ahmedabad, Pune, Bengaluru, Hyderabad, and Kolkata.
Curated From : Factors affecting your car insurance rates – asianage