Usually, a third-party car insurance policy comes at a much cheaper price than a car insurance policy. This is because the third party insurance only protects you from the liabilities claimed by a third party after an accident whereas the comprehensive car coverage plan offers a wide range of benefits and coverage. Also, different car insurers assign different premiums to their motor insurance plans and add-on covers. Otherwise you can apply for third party car insurance online. The five factors that may be responsible for increasing the premium of your car insurance policy are given below:
The capacity of the engine
Car insurers often determine the policy premium based on the capacity of your car’s engine. A car with a low engine capacity will generally be eligible for a lower premium whereas cars with higher engine capacities are usually charged with a higher premium.
Cost of the vehicle
The cost of the vehicle may also determine the premium price as repairing and replacing the spare parts of an expensive car will need a higher sum insured that will ultimately result in a higher premium. Therefore, insuring imported cars will cost you a lot more than buying car insurance for Indian cars.
Also, lower premiums will be charged for used and old cars as their depreciated value will be taken into account while calculating the IDV i.e. Insured Declared Value. Also, cars that are in great demand in the market tend to come at a higher insurance premium whereas models that are not in demand might come at a much lower premium.
If you have a good history when it comes to driving and has not been involved in nasty driving and accidents in the past, the insurer might consider these qualities and grant you car insurance at a lower premium. Your profession will also be taken into account while determining the car insurance premium.
For example, if you are a cab driver or your profession needs frequent travelling from one place to another, an insurance company will demand an extra premium from you. Also, commercial vehicles are charged with a higher premium as compared to private vehicles.
If you opt for too many add-ons or top-up cover plans, the premium of your car insurance will naturally increase faster. For instance, if you opt for a nil depreciation car cover plan, your premium will automatically increase as the insurance company will not evaluate the depreciated value of your vehicle while settling an insurance claim.
Similarly, adding engine protection cover, personal accident cover, and other additional cover plans will increase the value of the premium. As a result, it is advisable that you only choose those add-on plans that are of utmost necessity as per your insurance needs.
A regular motor insurance plan will not cover the additional accessories that you have installed in your cars such as dash camera, speaker system, wipers for the windshield, etc. Therefore, if you decide to insure these accessories as well, you will have to pay a higher premium depending upon the price of the accessories.
Similarly, spare parts made of rubber, plastic, glass, etc. are not covered by a regular car insurance plan. If you want them to be covered as well, the insurer will demand a higher premium.
Therefore, you must consider all these factors while purchasing a car insurance policy. On the portal of Bajaj Finserv, you will find the motor insurance plans of popular and credible insurance companies. You can evaluate the price of the premium by visiting their portal and if you find an insurance policy that offers extensive coverage at a cheaper price, you may even apply for it online.