Now a days cars have become an essential part of everyone lives. It is very important to purchase car insurance if you intend to buy any car. The insurance premium is not common for the all sorts of cars. Therefore, everyone should know the amount of premium before deciding to purchase a car.
Factors which affect the calculation of premium are as following:
- Age of the car :
The older will be the car the higher the premium will be charged. This is like this because as the age of car increases it requires regular maintenance due to extreme wear and tear on its various parts. So in order to reimburse for the claims that you will make on the insurance company to bear this price, you will end up by compensating higher premium.
- Type of car :
Now a days in market there are various types of cars available and it is not at all startling that the engines of smaller cars which have low power will attract the lower premium as compare to the bigger cars which have more power engines. For example: Alto 800 will carry the lesser insurance premium as compare to the Ford Ikon car with higher insurance premium.
- IDV :
IDV (Insured Declared Value) is the amount remunerated to a car owner in case the car is stolen or undergoes damages that cannot be repaired at all. It is calculated as per the present cost of the car in the showroom which is multiplied by the cost of deflate. Furthermore, it is set by Tariff Advisory Committee at the commencement of begging of the plan tenure.
- City of car registration :
According to the the Indian Motor Tariff, cities have been separated into two zones that are Zone A and Zone B. There is dissimilarity in the premium charged for the similar car in both the zones. The premium is privileged for cars registered in Zone A comparatively to those which are registered in Zone B.
- No Claim bonus :
This is one of the most significant discounts that you will ever obtain on the car insurance. This is valid if you have not filed a claim for 5 years. Moreover, this will help you in getting a rebate on renewal of your next plan.
- Add-ons with car insurance plan :
Many insurance companies offer various add-ons such as Personal Accident with your insurance policy. If someone want to get the car repaired but do not have fund to compensate for it then a cashless claim settlement is definitely there for help. Choosing for a third party responsibility will help in safeguarding yourself against the lawful liability in case of mishap. Some insurance companies permits you No-claim Bonus advantage if you have just purchased their plan for the first time, but have not filed a claim with your earlier insurance company.
Therefore, having the right car insurance is significant from the legal aspect and protection angle. So it is very important to choose the policy cautiously, since with the elimination of tariff structure, the companies are liberated to accuse their own premiums.