I noticed that the premiums of motor insurance differ greatly, even in similar vehicles. There are individuals who pay much less. What really influences the prices of car insurance in India? I would like to know how such equal prices can be different among different people or vehicles.
The motor insurance quotes are charged differently depending on various factors to do with the vehicle, nature of the driver, type of cover wanted and locality. The premium is decided by the insurers who compute risk and they can compute possible charges of the claims.
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Type of Motor Insurance Policy Selected :
Third Party Insurance is a fixed premium determined by the engine capacity which is according to the IRDAI regulation.
Comprehensive Insurance has own damage cover and the cost of this is dependent on other factors. -
How Vehicle Type and Age Affect Insurance Premium:
Make and Model: There are high premium rates on luxury cars or powerful performance cars.
Age of Vehicle: The older the cars are the lower their premiums tend to be because of depreciation.
Fuel Type: Some vehicles will be diesel and these could be subject to greater premiums than petrol vehicles.
Engine Capacity: The greater the CC the higher the third-party rates. -
Location:
Cars that are registered in the metropolitan cities or in accident-prone areas can incur a high premium since there would be an elevated risk. -
Driver Profile:
Age and Experience: Older more experienced Drivers tend to pay less.
Claim History: Alternatively, a No Claim Bonus (NCB) can be given on a clean list to cut down the premium. -
Impact of Add-On Covers on Motor Insurance Cost:
Any added benefits such as zero depreciation or roadside assistance or engine protection raise the price of the policy. -
Insured Declared value (IDV):
An increased level of IDV will imply a greater premium and also get good compensation in regard to being total loss.