How much will my car insurance cost?
How much will my car insurance cost?
The IRDA has made it mandatory for every vehicle owner in India to ensure their vehicle and avail third-party coverage. Failing to do so would result in fine or/and other charges. With the increasing number of car owners, availing the best car insurance at affordable prices has become a big concern.
The cost of car insurance is determined by various factors such as:
- Model, Engine and Age of the Car
Each car model has a different price; depending upon the engine capacity and the type of fuel used. The higher the cost of the car, the higher the policy premium. If one was to buy a vintage car or high-end cars like Mercedes or BMW the premium cost would be higher than the other models or brands. The older the car, the lesser the Insured Declared Value (IDV) will be.
- Geographical Zone
The place or area where you reside and are planning to buy the insurance and vehicle from determines the premium and overall policy cost. Metropolitan cities have a higher cost of living, hence the vehicle price will be higher than that of the other cities, thus directly affecting the cost of the policy.
- Age of the Car Owner
Age of the policyholder is a vital factor in determining the cost of an insurance policy or even availing one. Most of the motor insurance firms consider 25 - 50 to be the ideal age to avail an insurance policy. This is because anybody in the age bracket is considered to be mature, healthy and responsible enough to take care of their driving and vehicle. Therefore, the owners within this age group can enjoy extra benefits including discounted premiums among others.
- The profession of the Owner
Certain insurers provide discounts based on the owner’s profession. For example, doctors are eligible to avail policies at low premium rates.
- Number of Add-ons
Add-on policies or riders can increase the premium cost. The more the number of add-ons, the higher will be the cost of the premium.
- Driving Record and No Claim Bonus
A clean driving record will influence the insurers to provide premiums at good rates with added advantages. The good driving record also results in accumulation of No Claim Bonus that would give the owner leverage when it comes to paying premiums.
All the above factors determine the cost of insurance for any car, therefore it is important to compare different policies, to avail the best one at an affordable price.
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