Insurance premiums depend on a variety of factors. It can happen that you and your relative have the same car model along with almost the same features but both of you pay different amounts of insurance premiums. But don’t be surprised, as you read ahead, you will come to know about the factors that determine car insurance premium. It will help you tackle the premium of your car insurance renewal to a great extent. You can also click the link to know more and renew you car insurance: https://www.turtlemint.com/car-insurance/
Here are five main factors that affect your car insurance premium:
Your location represents your lifestyle in a certain manner. Your city for your vehicle’s registration matters a lot for the premium which you have to pay for your car insurance renewal. Even certain places across India have been marked as ‘Insurance Zones’ by various insurance providers. It has been done to analyze the risk to your car in your geographical region.
These zones usually comprise the metro cities, along with other places across the nation. If you are a resident of these insurance zones, you will have to pay a greater premium for your car insurance renewal. The chances of accidents, thefts and trickery are higher in these developed places owing to factors such as high population, congested roads, driving habits, etc. So, the premium soars higher as compared to less evolved regions.
Type of Insurance Cover
Car insurance plans have two kinds – Comprehensive car insurance and Third-party car insurance.
Comprehensive car insurance provides coverage to both – the owner of the insured vehicle and also the third party.
The third-party car insurance doesn’t give any coverage to the car owner or the insured vehicle. Its coverage is only applicable for the damages caused to a third party during any road accident.
The premium of third-party insurance is comparatively lower than comprehensive insurance. But Comprehensive insurance has separate advantages of its own. So, choose the type of car insurance renewal carefully.
Type of Engine
The calculation of the insurance premium is based on the cubic capacity (cc) of your car’s engine. The higher the engine capacity, the higher the premium.
In other words, the premium for a 1000 CC engine will always be lesser than a 1500 CC engine.
Add-ons For Security
The main motto of any insurance plan is to shelter your vehicle from any feasible risks. If your car possesses security devices like handle lock, GPS tracker, gear lock, airbags, and so on, the risk of your car getting stolen reduces to a great extent. Insurers take a look at your efforts to safeguard your car and then go for calculating the premium. So, this can reduce the cost of your premium. But this reduction is only applicable if the security equipment is validated by the Automotive Research Association of India.
Car accessories like spoilers, roof rails, and so on are usually not included in the car insurance renewal plans. But if you want insurance for those items too, get it installed by your car dealer at the time of purchase. The cost of these materials will be added to the cost of your vehicle. This will help you to get a greater Insured Declared Value from your insurer. But it will raise your premium at the same time.
Premiums play an important part in determining the budget of your insurance expense in a year. As the car insurance renewal has to be done after a certain duration, it’s always advised to pay close attention to the factors mentioned above before you finalize or renew your car’s insurance plan.