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Factors affecting car premium

 

 Factors affecting car premium

Learn how your car premium is affected by a variety of factors!

Table of contents
Car insurance premiums and factors affecting them
The type, model and change of the car
Power source
Engine cc
Region: RTO (Regional Transport Office)
The age of the car
Age, career and history of driving for the owner
Bonus without claim (NCB)
Take away

The amount you pay for insurance coverage for your car is referred to as the car insurance premium. There are two types of car insurance plans based on insurance coverage: third-party car insurance and comprehensive car insurance. The premium amount for each type varies because the premium amount is determined by the coverage provided. Apart from coverage, there are a number of additional factors affecting car insurance prices. Let's take a closer look at each of these properties one by one.

Car insurance premiums and factors affecting them

Here are some items that affect your car insurance price that you should be familiar with in order to make the best decision when buying or renewing your policy:

The type, model and change of the car

Car making relates to the name of the manufacturer (brand), the model in the name of many divisions of the brand, and the alternative/version to the specific label used to select the car. Take Mahindra XUV300 W4, for example. Mahindra is a brand name, XUV300 is the name of the model, and W4 is one of the versions. The cost of car insurance varies depending on the type of MMV.

Power source

The type of fuel used by the car, such as gasoline, diesel, compressed natural gas, LPG and electric motors, affects the cost of car insurance. CNG premiums are often increased by Rs. 60, plus additional third-party insurance fees. The premium price of comprehensive coverage varies depending on whether the CNG group is installed outside or inside.

Engine cc

The premium of the car insurance policy is also determined by engine capacity. Engine capacity and premium amount are directly related: the greater the capacity, the greater the premium, and vice versa.

Region: RTO (Regional Transport Office)

RTO's website where the car is registered affects the cost of car insurance. Regional organizations in India are divided into two categories: Area A and Area B, area A covers Delhi, Mumbai, Pune, Chennai, Kolkata, Hyderabad, Bangalore and Ahmedabad, while Area B is covered the rest of the country.

The age of the car

The cost of universal coverage is also determined by the age of the vehicle. The declared insured value of an insurance company (IDV) for an old or old car is lower than the value of the new car. Due to the loss of consumption incurred by the car, IDV is affected by its age. As a result, the used car premium is smaller than the new cars.

Age, career and history of driving for the owner

Many car insurance companies offer customers a discount of a specific age group on their premiums. For example, if the policyholder is between the ages of 35 and 45 and is a seasoned driver, the insurance company may offer a discount on the cost of the comprehensive damage policy (OD).

Bonus without claim (NCB)

Insurance companies reward their customers with a discount known as a no-claim bonus if they do not file a claim during the insurance year. Interest increases with each year of no claims, allowing you to save more money on the cost of insurance for your car when it's time to renew. To get a real picture of your premium, you should check the NCB component of the policy when you get a plan and when you renew it.

Take away

These are some of the most important aspects that affect the cost of premium vehicle insurance policy. When purchasing an insurance policy, the policyholder must always provide real and accurate information regarding these variables. False statements related to them can lead to significant penalties, termination of the plan, and other consequences.

Read also - A simple way to compare car insurance rates

Disclaimer: This article is issued in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should conduct further research or consult an expert in this regard.

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