Factors Determining Your Car Insurance Premium
There are several factors which determine the auto insurance premium in India. Car insurance policy comprises of 3 parts.
- Own Damage
- Third Party Cover
- Personal Accident cover
Factors that determine the amount of car insurance premium are many. Given below are these factors taken into consideration while determining your car insurance. The auto insurance calculator given above works on these principles while determining insurance premium of your car.
- Engine CC: Engine displacement is one factor which determine the insurance premium of a car. Cars with higher CC are required to pay higher insurance premiums
- Registration City : City where a vehicle is registered is another factor determining auto insurance premium. Cars registered in one of the 8 metropolitan cities viz., Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Bangalore and Ahmedabad are required to pay higher premium. This is because incidence of vehicle thefts and accidents are higher in these cities.
- Car Model: With increase in age of the car, insurance premium also comes down.
- No claim bonus: Insurance companies offer huge discounts on car insurance premium of cars with history of no claims.
- Car Manufacturer: Vehicles of manufacturers prone to accidents and thefts have a higher premium than cars made by companies with low theft and accident rates.
Apart from these, there are other factors like age and profession of the registered owner etc.. are also considered while calculating car insurance premium.
In America and some European countries factors like Gender, Marital status, driving record, color of a car etc... are also considered while determining Car insurance premium.