All cars on Indian roads must have a car policy, according to the Indian Motor Vehicles Act of 1988. So, you can’t ignore the fact that you need car insurance. Car insurance premiums can be hard on a person’s bank account. The best way to avoid having to pay more for your premiums is to know what factors affect them.
When figuring out your car insurance premium, especially at the end of the year, many things are taken into account. Knowing about these things can help you make a good choice.
Most people look at the premium first when they want to buy affordable car insurance. Although this is a very important factor when getting vehicle insurance, there is more to it than just the cost of the premium. You can check how much your premium will cost through a car insurance app download. Let’s look at the things that go into figuring out the premium:
IDV = Insured Declared Value
Insured Declared Value is the most money that the insurance company will pay out if your car is stolen or destroyed. It is how much the car is worth on the market right now. The IDV of your vehicle goes down over time, just like the value of your car does, because cars lose value over time. As time goes on, the IDV of the car goes down because the value of the car goes down over time. But the cost of your car insurance goes up if your car’s IDV is higher. *
Location of insurance geography
The place where you live and buy an insurance policy has an effect on how much your premium will be.
Zone A includes cities like Ahmedabad, Bangalore, Kolkata, Mumbai, Pune, Hyderabad, and Chennai, where cars are often stolen or involved in accidents. Zone B has the rest of the cities. The premium rates in Zone A cities are higher than in Zone B cities. You can check your premium through a car insurance app download.
Needed coverage
How much you pay for 4-wheeler insurance depends on what your policy covers. Comprehensive car insurance costs more than liability insurance for third parties. The cost of the premium also goes up when you add things like “zero depreciation cost,” “cost of vehicle towing in case of breakdown,” “NCB benefit protection,” and so on. If you buy a new car, it’s a good idea to get full coverage because the cost of repairs and new parts will be high. Using the online car insurance calculator, you can get quotes for the policy you want. *
How the engine works
The cost of car insurance is based on two things: coverage for damage to other people and coverage for damage to your own car. The cubic capacity (cc) of your car’s engine is used to figure out how much third-party liability cover you need. The Insured Declared Value of your car is used to figure out how much your own damage coverage is worth. In simple terms, a car with a 1000 CC engine would have a lower insurance premium than a car with a 1500 CC engine. *
The IDV of your car is used to figure out your own damage cover. In simple terms, a car with a 1500cc engine costs more to insure than a car with a 1000cc engine. *
Set reminders for car insurance renewal online, so you don’t have to deal with the consequences of not having it. Knowing what goes into your premium can help you choose a policy that fits within your budget and meets your needs.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
