5 Factors That Affect Your Car Insurance Premium

You might have experienced that despite having the same brand of car with similar parameters, you and your friend pay varied figures for your car insurance premiums! Have you wondered why? This post will help you know of the vital factors that influence your car insurance premiums!

You should know that many factors are taken into consideration when determining the car insurance online policy premium majorly by insurance service providers. Of many factors, two of the key factors are opting for a lower insurance coverage and of course the voluntary deductibles.

Here are some of the major factors that impact car insurance premium

Your location

The area of your residence mirrors your lifestyle as you have a direct relationship with the place. The city where your car is registered affects the premium that you will pay. Yes, insurance service providers have kept aside some locations in India as the ‘insurance zones’ where the risk of your cars meeting with a mishap is more. As a result, if your city falls into such a zone, you are bound to shell out more. Usually, these zones are none other than those cities that fall in the metro categories. These places may see a higher rate of accidents, and vandalism and hence, if you want to have a car insurance online policy, you will need to pay more for the coverage.

The kind of car insurance coverage that you own

Talking about car insurance online policies, your car is covered by two types of insurance schemes – one is third-party insurance and another is comprehensive car insurance. The third party car insurance plan offers you coverage against damages causes to the third party in any road accident. It has no provision for coverage to car owner or the driver of the insured vehicle. And the comprehensive plan offers coverage in both conditions and to both parties. Thus, the concept is clear is that if you have a third party car insurance coverage, you will pay a lower premium. On the other hand, you will pay more if you have subscribed to a comprehensive car insurance online policy.

The engine of your car

The calculation of the third-party coverage is determined by the cubic capacity of the CC of your car’s engine. The calculation of own damage plan is dependent on the insured declared vehicle’s value. In common terms, you will be paying a lesser amount as the premium if your car is fitted with a 1000 cc engine compared to a 1500 cc one.

Extra shield of security matters

Since you got the car insurance policy to ensure the safety of your vehicle from probable risks, if you secure it with modern gadgets, it will help you pay lower premiums. Yes, if you have secured your car with security devices such as handle lock, airbags, gear lock and GPS, the insurance provider will appreciate your move to secure your vehicle. As a token of appreciation, you may get a discount on your premium helping you save more.

The modification of the car

Car accessories such as spoilers and roof rails are not covered under the car insurance policy. You can get insurance coverage for all if you install all such things by your car dealer when you buy it. Installing all these will hike the car price. On the other hand, the insurance premium for the policy will also increase.

The Bottom Line

You are now aware of the factors that affect car insurance online policies’ premiums. Assess what you need and what you won’t to get an affordable or expensive car premium. All the best!


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