Car Insurance Quotes – The cost of a car insurance quote is called the premium. The premium for a third-party plan is fixed by the Insurance Regulatory and Development Authority (IRDAI), which varies on different engine capacities. However, the premium for standalone own-damage and comprehensive car insurance plans is based on a range of factors such as the extent of coverage, make model, variant of the car, type of fuel of the car, RTO location, and so on.
Car Insurance Quotes Online
1. Type of the Plan
The premium of the plan depends on the coverage opted for. Wider the coverage, the greater the premium. There are three basic types of car insurance based on the coverage they provide
Third-Party Insurance- This type of insurance is compulsory and covers the cost of third-party liabilities including bodily injuries, death, and property damage.
Standalone Own-Damage Insurance- This covers the cost of the policyholder’s vehicle damage in case of a mishap but is not compulsory.
Comprehensive Car Insurance- This type of cover provides compensation for both third-party liabilities and own-damage costs under a single premium making it the most hassle-free option of the three.
2. MMV of Your Car/Vehicle
The primary factor which affects the premium quote of your car insurance policy is your car’s MMV – make, model, and variant.
3. Fuel Type
Another factor that affects the car insurance premium quote of an insurance policy is the fuel type of the car/vehicle. Different premiums are charged for diesel cars and different premiums are quoted for petrol cars.
4. Policyholder’s Profession
Insurance companies give weightage to the correlation between the policyholder’s risk of accident and their professions and hence adjust the premium accordingly. People involved with professions such as cab drivers, and delivery agents are usually at a higher side risk and thus a relatively higher premium charged to me.
5. Policyholder’s Credit Score
Many insurance companies take into consideration the credit score of the applicant to determine the Car Insurance Premium.
6. Car Size
Generally larger cars are considered safer than smaller cars in accidents. Therefore, often insurance companies offer relatively lower premiums to bigger cars than smaller ones.
7. Car’s Safety Rating
Buying a car with a high safety rating means can help you get a car insurance plan at a relatively lower premium due to increased safety and lower chances of meeting an accident.
8. Policyholder’s Driving History
If the owner of the car/vehicle has been in accidents or has made previous car insurance claims, the insurance company will tend to charge a relatively higher premium to such individuals.
