Car Insurance Premium
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With a car insurance policy, you want to safeguard your vehicle against possible damages that may arise unexpectedly. While buying a plan, you hear about many terms and conditions, but focus more on the premium charged and the benefits. In between all this, you care only about the amount to be paid, not knowing how what all matters while determining the premium and how it is calculated. As a car owner, it is crucial for you to be aware of the factors that sum up to calculate your car insurance premium. You can even use a car insurance calculator in India to understand more about it.
You might only know about the benefits of buying a car insurance policy. But do you know why your car insurance premium is different than what your friend pays? We believe its time to change that, don’t you?
Here is a brief understanding of how you can check if your car insurance premium gives you the value of money:
Different Aspects of A Car Insurance Policy
Car insurance premium depends on:
- Its Insured Declared Value
- Engine’s cubic capacity
- Its Type and age
- Location of vehicle registration
In India, most car insurance policies include the following covers:
- Third-Party Liability Cover
In India, if you own a car, it is mandatory to have a third party liability cover. It financially covers any damage caused by your vehicle to a person or property. The Insurance Regulatory Authority of India (IRDAI) defines the third-party liability premium based on a car’s capacity. It is essential that you know well about the role of third party insurance. Whenever you buy car insurance, compare the coverage limit and premium to be paid first using an online car insurance calculator in India to have a better understanding.
- Own Damage Covers (ODC)
The own damage protection cover is optional but highly valuable. If your car is damaged due to any natural phenomena like earthquakes or storms, it financially covers the vehicle damage repair expenses.
The higher the insurance declared value (IDV) of your car, the higher will be the premium of comprehensive car insurance. Hence, when your vehicle gets older, the IDV gradually decreases. In general, the premium for Own Damage Cover is determined as a percentage of IDV. If you want to get your car insured under a comprehensive plan, you can check the estimated premium online using a car insurance calculator in India.
- Personal Accident Covers
An essential component of your car insurance that goes beyond protecting your car is a personal accident cover. It not only offers protection for accidents but also for casualties leading to disability. It is a crucial part of a car insurance policy as the chances of disability are high in case of road accidents. Some insurers offer personal accident cover as a part of their comprehensive car insurance plans, while others keep it as an add-on. So, you must know about these differences while buying a policy. With the help of a car insurance calculator in India, you can check how the premium varies on including such additional benefits in the policy.
In India, several insurance companies sell car insurance at different rates. Knowing about various components of the policy can help you avoid paying more premium than you should. Make sure you choose a renowned insurer like Tata AIG, to buy a feature-rich car insurance policy. You can easily find positive reviews of Tata AIG car insurance online that validates their market reputation. Last but not least, always remember that paying the price of car insurance gets you a long way.
