Some critical factors affecting your premium car insurance

The factors that determine the premium for car insurance depend on the risks taken by the insurance provider. These variables are listed as follows: 

Car related risks: 

Your car model, cubic capacity and fuel type, etc., are some of the parameters that determine your car insurance premium. Others, such as commercial vehicles and SUVs, i.e., sports utility vehicles, care because insurance providers receive a large number of claims on these vehicles, they also require higher premiums. Diesel cars typically have a 10-15% higher premium than petrol vehicles. 

Location-related risk:

It focuses on the area of ​​registration. Rates are usually higher if the owner of the car lives in an urban area, is a densely populated area, or lives close to highways. When you live in that area, vehicle theft or damage occurs, the premium for car insurance will increase. 

Risks related to the driver of the car:

 The profession and age of the driver are considered. You have to pay a higher premium in the case of many car drivers. 

Talk is important:

When it comes to purchasing motor insurance, talk to your existing insurance provider. You never see that you can get extra mileage if you are a responsible driver and have not presented too many claims or have recorded too many accidents. 

Safeguard Your No Claim Bonus (NCB): 

If you are a responsible driver and you have not submitted a claim, you will earn the benefit of No Complaint Bonus (NCB). If you have not registered a one-year auto insurance claim, your car insurer will reward you with a no-claim bonus. It is the rebate that is deducted from your insurance premium during the policy renewal. As an alternative, you can go for NCB. 

Review Claim Settlement Ratio (CSR): 

Before finalizing the car policy, consider the claimant's prior claim settlement history. The claim settlement ratio is an insurer's time to settle claims for its customers. Continue only when it is good. If CSR is not right, do not even think about buying the best car insurance policy in India. The Claim Settlement ratio for various insurance companies can be easily found in India on the IRDA website.

Key Areas Where You Can Go Wrong When Choosing Cover:

Here are some key areas where you can go wrong when choosing a cover for your car: 

Vehicle value: To purchase a low premium car insurance policy, people often reduce the insured declared value (IDV) of the vehicle. But in the event of an accident, the car is considered a total write-off. You do not have to tolerate this type of practice because the cost-benefit is not enough. Always try to buy a policy that offers you the highest IDV on your vehicle, even if you have to pay a slightly higher premium.

Policy lapses: If your policy lapses, your insurance company can usually give you a grace period of one week. You risk driving a vehicle after this period without any insurance. You may miss out on benefits such as car insurance or low premium discounts.

Note: If you finalize the best car insurance policy in India for your vehicle, then it is good to look above and beyond the motor insurance premium. Please keep the following points in mind when choosing a car insurance policy for your precious possession. Buy a car insurance plan, gear up your car and drive without worries.