r most Indians, buying a car is a milestone; it is an asset which enables mobility and provides convenience. However, just buying a car is not enough; proper maintenance and the right car insurance are essential elements of car ownership. The constant increase in the number of vehicles on the road makes it almost impossible to protect your car from unwanted mishaps. For instance, in certain regions, your car is exposed external threats such as floods, which can lead to a complete breakdown of the car’s engine. Such situations result in exorbitant repair costs, owing to which the owner is definitely going to feel the pinch. To ensure that car owners remain protected from unexpected expenses, it is essential that you purchase the right car insurance for your vehicle.
Importance of Car Insurance
Along with the huge number of vehicles, the lack of proper infrastructure makes car insurance extremely important in India. Even experienced drivers on the road and can easily get hurt by negligence of others. This can lead to financial loss and personal injuries, and adds to the mental stress as the individual reels from the trauma of an accident. In such cases, your car insurance comes to your aid.
Benefits of having Car Insurance
We all know that cars are an expensive investment, and the regular maintenance and repair just adds to it. Add to that, if there were to be an accident, it can lead to considerable expenses. A car insurance policy takes care of such expenses, and provides financial relief. It also provides cover against legal ramifications of an accident caused by the owner’s negligence. In addition, car insurance will also pay for hospitalization if the accident causes fractures or other serious injuries. Last but not least, the insurance policy will provide compensation to the family if a road accident results in the death of the owner.
One can easily purchase car insurance online as it gives you multiple benefits over offline modes. The most attractive benefit is the lower premium that one needs to pay when purchasing car insurance online. This is because of the low operating costs, the savings from which get passed on to the insurance buyers in the form of lower premiums.
Factors that Affect Car Insurance Premium
The premium paid for a car insurance policy is an annual expense. While the need for buying car insurance cannot be ignored, most car owners ignore it just to save money on the premium. The best way to deal with this situation is to be aware of important factors that affect car insurance premium. Having sound knowledge about these factors can help ensure that minimum premium is paid on the motor insurance without compromising on the benefits and coverage. Here are some of the factors that can help lower the car insurance premium.
The location where you live and purchase an insurance policy has a great impact on the premium rates. For example, car insurance in Delhi, Mumbai, Chennai and Bangalore will cost you more as they are located in Zone A, while the insurance will cost less in Zone B cities.
Personal factors such as gender, age, etc. also affect the premium rate. Younger people need to pay higher premium factor, and those between the age of 50 years to 65 years are required to pay the least. The same goes for women who are considered safer drivers compared to men, and are required to pay lower premiums. A married individual will also need pay less premium on car insurance compared to unmarried people.
·Type of Engine and Capacity
Diesel cars incur a comparatively higher car insurance premium. That’s because diesel cars are expensive compared to their petrol counterparts, and so is their IDV. Hence, a car insurance policy for a diesel car is costlier compared to a car that runs on petrol or petrol + CNG. The engine capacity is another determinant that will affect the premium on the policy. A higher engine capacity means a higher premium, and vice versa.
·Type of coverage
Car insurance premium will change depending on the coverage and benefits offered by the policy. If the car owner opts for a comprehensive motor insurance policy that provides a range of benefits, he is likely to pay a higher premium. If the car owner buys third-party insurance only, the premium will be lower.
·Customized Car Insurance Plan
A customized car insurance plan that fulfills the requirement of purchaser will cost more. Most of the insurance companies in the market offer plans that can be customized as per the needs and requirements of the customer. Such plans give an advantage to the buyer to opt for only those covers that are absolutely needed by him/her, thereby giving him control over the policy premium.
Car insurance premium will always vary depending upon the aspects mentioned above. One can easily compare the car insurance premium of various policies online at the time of buying, as that will allow one to get an affordable car insurance plan which provides the essential coverage that one needs.