Factors influencing your vehicle cover
Your car is your pride, a source of joy and delight in life. Imagine if anything untoward happens to your car. Although, you are a careful driver but you cannot predict a road accident, natural calamity or someone just stealing your car parts or your car itself. Therefore, it is advisable to buy a suitable vehicle insurance that will not only cover up the third party damage expenses but also take care of your financial losses arising due to accidental injury to you as well as the damage done to your own car. With so many insurance firm display hundreds of products, choosing an insurance cover can be quite a riddle in itself, unless you’re adept in choosing the right car coverage. As your car ages down, there will be persistent auto insurance salesman trying to sell their products to you. However, if you need to pick the insurance policy it is better to carefully go through the print line as insurance firm will offer services exactly the very definition what is written in fine prints. You should compare vehicle insurance quotes to see who is offering you the best deal. Ideally, insurance industry caters two types of vehicle insurance third party liability and comprehensive plan. A third party usually covers damage to property, health or death of the third party. It's a mandatory requirement for all vehicles plying on public roads in India. A comprehensive plan will cover for both ‘own damage as well as the legal liability of the third party. It also covers theft or damage caused by unfortunate incidences like fire, theft, storm, earthquake, etc.
Experts suggest buying comprehensive vehicle insurance cover as it offers a dual protection against financial losses arise due to a third party and own car damages. Some factors that will influence your vehicle insurance premium: The factors affecting premium calculation are based on the risk that insurance firm will be underwriting and these are broadly classified into four categories: Vehicle-related risks – Your car make and model, fuel type, cubic capacity, etc. are few parameters which will determine the premium. Some vehicle like high-end sedans, SUVs, commercial vehicles often need higher premium payouts because firm gets larger claims on such vehicles. Ideally, diesel vehicles have 10 to 12 percent higher premium costs. During renewal, the age of the vehicle and its depreciation will determine the premium that you will pay. Place related risks – It is the area where your car registration belongs to. Usually, a premium is high if you live in metropolitan cities, semi-urban areas, near highways or densely populated areas. The level of safeness in your areas, riot free zone, theft free zone will help you get insurance at lower premium costs. Claims history – If you make a claim for vehicle insurance in particular year then your premium will go up slightly the following years. In case you don't claim you are rewarded with No Claim Bonus. It is the best discount that companies offer which when accumulated year-on-year could be used to trade for lower premium costs. Driver related – Age and profession of the person who drives the vehicle such as you, driver, family members is taken into account. If there are multiple drivers then the premium is bound to rise a little bit. Also, driving records are taken into consideration.