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Know How Your Car Type Affects The Car Insurance Premium

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Did you ever chance upon the fact that the amount for car insurance that you are paying is likely to be different from what your brother-in-law or aunt or neighbour is paying and wondered why?  Learn to compare the insurance policy coverage before buying it.

Simply put, the flashy and huge cars are considered dangerous. Insurers are known to charge increased premiums for cars that can cause more damage on road owing to their size, speed or missing safety features like air bags because it will mean that more money would be needed to pay for the repair as well as for medical bills in case of an accident. That’s why vehicles that are rated highly in terms of driver, passenger, and third-party protection, are given discounts on insurance.

Expensive and popular cars demand more premiums

Similarly, the costlier and popular the car is higher will be the premium because the chances of theft get higher. Also, expensive cars are costly to repair. It will cost significantly more to repair a BMW than it will to repair a Maruti car. Also your brand plays a big role as foreign car costs more to insure because their parts can be harder to get.

Other factors

Apart from the type of the car, parameters like how often and how far you drive; how safe is the locality where you live in; how clean is your driving record; the number of drivers who will be driving the car; your credit history; how your age, sex and even marital status add up to your being a safe driver; how many cars are you insuring; average car insurance cost; payment plan opted for; etc. are seen before calculating your premiums.

It’s advisable that along with the specs of the car, keep an eye on insurance premiums when visiting the car dealer. If your favourite car has lower safety ratings or is a favourite of the thieves, you might want to reconsider your choice.  

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.