When you opt for a car insurance policy, you are protecting your car and yourself from the financial liabilities of handling the accident damage costs. However, selecting a car insurance policy that will be suitable for you can be tough, considering the wide range of options available for you. Hence, if you decide to buy car insurance online, you will have the opportunity to compare different policies and select the one that will meet all of your requirements.
Car Insurance in India
Car Insurance in India is available in three variants – third-party insurance, own-damage cover and comprehensive insurance.
Third-party car insurance is a mandated cover as per the Indian Motor Vehicles Act of 1988. It is one of the cheapest insurance covers as it offers protection against the liabilities arising from third-party damages only.
The own-damage cover protects against the financial liabilities caused by the damage of the car, theft of the car and injury/death of the owner-driver.
A comprehensive car insurance policy combines the coverage of both the above-mentioned policies and offers an all-round 360-degree coverage. Damages to the bike, theft of the bike, injuries/death of the owner-driver, and third-party liabilities, everything is covered under a comprehensive policy. You can further extend the limits of your coverage by buying relevant add-ons with your car insurance policy.
When you buy the insurance policy, you will have to pay premiums against the sum insured you will get when you file the claim. But can you determine the premium amount on a policy?
Factors that determine car insurance premium value:
While you cannot predict the premium amount you may be eligible for, you can consider certain factors that will affect the premium amounts. Some of the factors that affect car insurance premium value are listed below:
Demographic factors:
- Location:
The location from where the car insurance is purchased will gravely affect the premiums that you pay. A metro city will be more packed, so it makes it an accident-prone location. This results in a high premium on the policy. Any location with low daily traffic can result in low premiums.
- Employment type:
Your employment status will also factor in on the premium you pay. If your profession involves accidents or is a bit risky, then a high premium is charged.
- Age and marital status:
Car insurance companies believe that, if you are married, your chances of getting involved in an accident are low. Therefore, charging you a low premium. Similarly, youngsters are more prone to rash driving than older, married individuals. So young car owners may be charged a higher premium.
- Gender:
Females are traditionally known to be safer drivers than males. Hence, female car owners will enjoy a lower car insurance premium than men.
Car-oriented factors:
- Car types:
The make and model of your car can affect the premiums you pay. A sports car will attract a higher premium than a normal car. If your car model has a high chance of getting stolen, it will result in a high premium.
- Size and age of the car:
A large vehicle can rake in fewer premiums, and it is also applicable the other way around. If the car you are getting insurance for is old, the premium amount will be less.
Individual factors:
- Driving history:
Your driving history will have a huge effect on the amount you pay on the premiums. Any accidents, traffic violations, tickets issued in your past can result in a higher premium.
- Driving activity:
Depending on the amount of time you spend driving your car will also affect the policy’s premiums. For instance, an individual who spends a lot of time driving on the road increases their chances of being involved in an accident. Hence, if you spend a lot of time driving, you may have to pay high premiums.
When you keep these factors in mind, you can improve your chances of getting a good car insurance policy.
One of the best ways of determining your premium cost outflow for getting a car insurance policy is to use a car insurance premium calculator.
Car Insurance Calculator
If you want to get a better idea of the insurance quotes you are eligible to get, you can use a car insurance calculator. These calculators are available on the insurance company’s website and will provide you with the policy quotes you can get. These calculators will require you to fill in basic details about your policy, car and personal information. Depending on the information you provide, the calculator will provide you with the quotes you can get. With a calculator, you can customize the information you provide to opt for a plan suitable for you.
Conclusion
Thus, car insurance is an effective way of taking care of damage bills on your car. A lot of different factors can affect the premium amount of a car insurance policy. To get the best premium prices on the policy, you must consider these factors and provide them when required. Any false information provided can lead to paying hefty fines. If you decide to get an online 4 wheeler insurance, you have the option of using an insurance calculator to select a better policy.
