Car insurance premium is influenced by these factors

Car Insurance

Car insurance premium is influenced by these factors  27th Nov 2019

Having a car insured takes many brainstorming sessions in which you have to consider several factors. The premiums paid towards a car insurance policy can be a wrecking ball to your hard-earned money. The requirement for purchasing a suitable policy is something that can't be overlooked. An ideal approach to manage this undesirable circumstance is to know about significant components that influence the vehicle insurance premium. The adequate knowledge of these determinants will enable you to have decent policy terms from the best car insurance company in India with the same advantages and deductibles. Here are some of the factors that directly affect the premium rates,

  • Type of Car – Undoubtedly, the subject of your insurance that is your car determines your premium rates and is one of the significant factors considered under the premium bar as some of the vehicles are either stolen; lack specific safety measures or incur more repair costs.
  • Driving Habits of the Driver – If you have a record of bad driving, accidents or too many traffic fines under your belt then the insurance companies may refuse to give insurance or charge the high cost of the policy as they strictly adjudge that another accident is prone to happen soon. However, if you make sincere efforts to drive safely, your record may lose value over time, and your insurance premiums can be more manageable for you.
  • Demographic Factors – Things like your age, profession, geographical location have quite a weight on your insurance premium allocation. For instance, if you live in densely populated regions, then you are more prone to collisions, thefts or injuries hence higher the premium. Whereas, if you live nearly in a hamlet, then your premium may descend accordingly. Similarly, take age or gender; for example, if you are young and reckless, you may have to shell higher premium amounts. In some cases, women tend to pay lesser premium than man. No reason, just giving an edge to gender parity and all.
  • Customized Car Insurance Policy- Another primary reason for increment and decrement of insurance premiums. A well-customized car plan that completes the necessities of your desired car may cost you high premium rates. Many insurance firms offer well-tailored policy plans that would prove beneficial to the insured on a personal basis.
  • Car coverage and choice of deductibles - Insurance premiums may vary depending upon the type of coverage the insured chooses for their car. Types of coverage depend upon the state of the car; they could be collision, liability, comprehensive, personal injury protection coverage, etc. A deductible is an amount you pay before your policy period to pay for an uncovered loss, setting high deductibles indicates less money to pay in policy.

In the end, one must ensure that paying for

car insurance

is an essential part of owning a car. Hence, try to come with a pivotal decision that would lower your premium at any cost.