Car insurance is a mandatory requirement for drivers in India, and it involves a contractual agreement between the vehicle owner and an insurance company. This agreement stipulates that the insurer will cover damages sustained in collisions. However, obtaining car insurance can be intricate, involving risk evaluation, motor insurance policy customisation, and regulatory compliance.
Factors Influencing Car Insurance Premiums
Several elements influence motor insurance premiums, each tailored to the individual characteristics of the vehicle and driving style:
- Car Make And Model
The type and brand of the vehicle significantly impact insurance costs. Luxury or high-performance cars may incur higher premiums due to increased repair costs.
- Vehicle Age
The age of the car is a crucial factor. Newer cars often have higher vehicle insurance rates because of higher repair and replacement costs, while older models may enjoy lower insurance costs as they depreciate.
- Cubic Density
The size of the car’s engine affects premium calculations. Vehicles with larger engines may have higher insurance costs due to perceived higher risk levels associated with greater power.
- Patterns Of Use
How the car is used affects motor insurance premiums for personal or business purposes. Business use may result in higher premiums due to increased risk.
- Claims History
Prior claims history can impact premiums. A history of at-fault accidents may label a driver as high-risk, resulting in higher premiums, while a clean claims history may lead to lower rates. ##
- Supplementary Covers
Choosing add-on coverage, such as roadside assistance or zero depreciation, can affect premiums. While these extras enhance coverage, they also increase the overall cost of the premium. *
- Driving Experience And Age
Driving history and age play a role in premium calculations. Older, experienced drivers typically enjoy lower premiums, while younger, less professional drivers may face higher costs due to perceived increased risk. ##
- Anti-Theft Equipment
Installing anti-theft devices can result in premium savings, as insurers see them as risk-reducing elements that enhance the vehicle’s security.
Why Purchase Car Insurance?
Legal Defence:
Having car insurance is a legal mandate to ensure road safety. Third-party insurance is a requirement to handle accidents civilly and sensibly.
Avoiding Penalties:
Operating without insurance can lead to expensive fines, reaching up to ₹4000 for repeated offences. Carrying insurance ensures legal compliance and protects against penalties.
Defence For Your Car:
In a theft or accident, car insurance covers repair or replacement expenses, providing financial protection for the vehicle owner.
Individual Safety:
Car insurance not only protects the car but also ensures personal safety. In the event of an accident, personal accident benefits are provided, offering coverage for injuries up to ₹15 lakhs, with the option to extend coverage for passengers. Make sure you carry out the process of motor insurance renewal on time. *
Choosing the right car insurance demands a methodical approach. Analysing individual needs, comprehending premiums, and considering add-ons are key to informed decisions. This ensures peace of mind, legal compliance, and financial protection.
*Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan.
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.
