Know the Determinants of Premiums for Car Insurance India

As far as purchasing car insurance policy is concerned, most of the people don’t actually willingly go for it. They do that because it has been made compulsory by the Indian law. So, they don’t have any option other than buying one. Although you have to shell out some money for availing Car Insurance India, it is worth investing. If you are among those people who don’t buy car insurance cover gladly, be informed that buying it won’t hurt your wallet, rather it’s good for you, both financially and mentally.

If you are a new car owner or planning to buy one in the future, then you might have one question in your mind – how much does car insurance cost? Well, the amount of money you need to pay out for availing a motor insurance policy varies from vehicle to vehicle, car owner to owner and company to company. Here are some important factors that are commonly taken into consideration when it comes to calculating Car Insurance India premiums. Let’s check them out:

What is the model of your car?

The rate of premiums that you need to pay off largely depends on the IDV (Insured Declared Value) of your car. IDV is nothing but a fancy word for describing ‘market value’. The more a car costs, the more amount of premium to be paid off. Therefore, it becomes quite obvious that bigger vehicles, such as high class sedan, SUVs etc., as well as imported car brands are likely to cost more in comparison to the hatchbacks.

Fuel-type of the car is also one of the determinants of premiums. Those with diesel engines are more expensive than petrol-driven cars. One more thing – if a car has some expensive or not-so-common spare parts installed in it, the premiums might go up.

For what purpose the car has been purchased?

Car Insurance India polices can be bought for both commercial and personal purposes. For commercial vehicles the premiums are bound to be higher than that of personal vehicles.

Do you have any safety device(s) installed in your car?

Most of the modern age cars are manufactured with safety of the passengers in mind. So, they come equipped with a number of safety gears, like sturdy locks, advanced braking set ups, anti-theft gadgets, airbags, etc. Therefore, some insurance providers tend to increase the rate of premiums for the vehicles that are prone to accidental damages, theft, occupant injuries and so on.

The good part is– you can easily avail a rebate of around 2.5 percent on the rate of premiums, if your vehicle is essentially safe. However, make sure to include safety features that are approved by the ARAI (Automobile Research Association of India). Doing a bit of research prior to buying will help you get the list.

Which insurance zone do you fall in?

The area you live in and the location where your car is registered to also determine your Car Insurance India premiums. Therefore, insurance providers have marked distinct insurance zones as per the car’s susceptibility to loss or damage.