As a car owner, you will have to protect your vehicle from possible disasters like road accidents, theft and injury claims with a suitable car insurance policy. While the necessity of car insurance to meet your vehicle’s liability coverage can’t be denied, you should at least try to lower its premium rate as much as possible, without compromising on the coverage. Here is a quick expert-look at the crucial factors that can affect your car insurance premiums for good or bad.
- Insurance Area or Zone
The area or zone where you reside and intend to purchase a car insurance policy has a large impact on your premium rates. If you live in a remote or rural area which is less crowded and has lower accident/crime rate, you will have to pay relatively lower amount towards car premium. However, the amount may be significantly higher in metropolitan cities and urban areas where the chances of vandalism, damage or theft is higher.
- Owner’s Personal Details
Your personal details like age, gender, marital status, profession and credit score impact your premium.
- If your age is under 25 years, your car insurance premium will be the highest and for those aged between 50-65 years, the premium payment will be the lowest.
- If you are a woman, you are likely to pay less car insurance premium than men who are generally considered rash drivers by insurers.
- In case you are a married person buying a car insurance policy, you will have to pay less towards car premium as married people are perceived to be more careful drivers.
- If your job is riskier or more accident-prone, your premium will be higher than someone with a more desk-bound job.
- If your credit score is good, your premium will be lower than someone with a bad credit score.
- Vehicle Model and Engine Type
Some manufacturers attract a higher premium than others; this is based on the claim history of cars manufactured by them. Hence, cars made by them will have a higher IDV.
Your car insurance premium may be higher if it has a diesel engine. Diesel cars are often pricier, so is their Inured Declared Value (IDV). Hence, you will have to pay higher premium for a diesel engine car than for those running on CNG or petrol.
Additional safety features in the car, like ABS, airbags, tracking devices, etc will reduce the premium value as they reduce the chances of damage/theft. Also, if you install additional security systems, though the IDV will go up, the premium value might go down in totality.
- Insurance Details
The premium for your car insurance can be more or less depending on the insurance coverage. A comprehensive coverage is the most expensive. However, partial car insurance coverage offering damage protection to only third party is obviously cheaper. Again, the higher the deductibles, the lower the premium.
- Customised Car Insurance Plan
A customised car insurance policy that serves almost all of your crucial coverage needs may cause you a higher premium rate. Many auto insurance agencies offer custom tailored car insurance policies to provide specific benefits desired by an individual along with personal accident injury coverage.