Factors Affecting Premiums for Car Insurance In India

Factors that Affect Car Insurance Premiums

Owning a car is both, fulfilment to the need of transportation and status symbol. While it backs you on necessity, it also represents your success and financial standing. But people struggle a lot with premium rates when it comes to purchasing an insurance policy for their vehicle. However, keeping in mind a few things, one can certainly get an efficient plan and be relaxed with everything. Now you may scroll through this blog to check the most prominent factors affecting car insurance premiums

Factors That Affect Your Car Insurance Premiums

For many people, owning a dream car is a matter of celebration. It all has resulted in giving the automotive industry a pathway to design, produce and advertise more cars to compliment specific preferences and tastes of different segments of people. In the end, it all stops at getting car insurance

In every way out there, it is essential that you get your car insured with a good package. But what is a good package in a car insurance policy? It is, of course, the one in which you get the cover you require at a decent premium. 

An insured car can save you from hefty fines. It is as important as getting term insurance or health insurance. There are some important factors that affect your car insurance premiums and it is something which you should keep in mind while looking for a plan. 

Factors That Affect Car Insurance Premiums

Listed below are the major factors that impact the premium of your car insurance:

  • Your Profile

One of the most important factors determining the premium of your car insurance has a lot to do with you. As per the research and stats, it is shown that men are way too riskier while driving compared to women. Given that men hold more risk in terms of driving than women, insurance companies charge higher premiums from them. 

Yes, women are charged low car insurance premiums. Apart from that, people who are quite old or young are also charged high insurance premiums, being put under the high risk tag. On top of everything, married people have to pay lower premiums compared to the ones who are not married. It is not in your control but your profile affects the vehicle insurance premium to a noticeable extent.

  • Your Employment Status

After your age and marital status, comes your employment status. Know that the nature of your employment is one of the prominent factors determining the car insurance premium. If you are into a profession such as doctor, then you get to enjoy discounted premiums from many insurers.

Government employees and the personnel in defence forces are benefited with discounts on car insurance premiums. Many insurance companies also provide lower premiums on this insurance to their employees and the people who are members in the Automobile Association. 

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  • Type of Coverage

When it comes to looking at the determinants of your car insurance premiums, the type of coverage you choose is the one you can watch out for. The cost of premium is impacted a lot by the level of coverage you are going to receive.

If you opt for a more comprehensive coverage then you will be charged a higher premium cost. Getting third party coverage is mandated by law and thus you cannot eradicate it from your list. Besides that, there are many other inclusions which you may require that can take your premium cost high.

  • Type and Model of Car

As you go for a car insurance, the type, model and making of your car is taken into account in order to decide the cost of your car insurance premiums. Your car that has to get insured itself attracts a significant volume to the premium. If you are in to insure your sporty car then you will be payout a higher premium for that. 

On the other hand, insurance companies charge a low premium from the ones who own slower cars that basically don’t fall into the category of risk. The premium cost also has a lot to do with the fuel supply of the car. CNG, gas fitted and petrol cars cost more premiums than diesel cars.

  • IDV 

Insured Declared Value (IDV) is the amount corresponding to the value of your car as per the current market. It is yet another factor affecting the car insurance premiums. It keeps decreasing over time 

Hence, the IDV decreases over time, as the value of the car decreases every year due to depreciation. The depreciative effects of the IDV can be countered through regular and effective maintenance.

Wrapping Up

Car insurance is mandatory in India. When you are ought to get yourself a car insurance policy then why not get the perfect one? Whenever you head to get a policy, you must keep in mind these 5 factors that will affect your car insurance premiums.