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Car Insurance Premiums For SUVs And Sedans: What Influences Them

Written by Saad Ahmad
Updated On Oct 18, 20232 min read

Car Insurance Premiums For SUVs And Sedans: What Influences Them

SUVs have shown to be a viable alternative to sedans since they offer the same comfortable ride and conveniences as the latter. When compared to sedans, SUVs have become more affordable. Some modern SUVs are teeny-tiny, with cabin space equivalent to that of a sedan. If you're evaluating the benefits and costs of sedan versus SUV insurance, it's important to know which car will cost more to buy and insure. We analyze sedan vs. SUV insurance in this article to determine which is cheaper to insure: a sedan or an SUV.

Car Insurance Premiums For SUVs And Sedans: What Influences Them

What Influences Car Insurance Premiums for SUVs and Sedans?

The Indian car industry has evolved through time to offer a wide range of automobiles at affordable rates. They come in a variety of sizes, from little cars to luxury sedans and SUVs, and offer a variety of engine capacities, styles, and amenities. The cost of owning a car (including auto insurance) varies based on the kind of vehicle, engine capacity, and optional features. As a consequence, while picking between an SUV and a sedan, keep the following factors in mind, as they may affect your vehicle insurance quote.

Model of Vehicle

Four-wheelers come in many different forms and sizes, each with its unique set of features. There are small hatchbacks, sedans with more interior room, SUVs with off-road capability, and Utility Vehicles (UVs) with more passenger capacity. SUVs have generally been equipped with bigger engines, complex 4x4 systems, and off-road-oriented technology to enable them to navigate rough terrain. However, unless it was a costly and luxurious SUV, they did not give a soft ride equivalent to that of a sedan. This has changed in recent years. The new SUVs are compact and smaller in size, but they offer a spacious interior, high-end features, improved ground clearance, and a smooth ride at a price comparable to sedans.

Year of Manufacturing

Your car's age is determined by the year it was produced. The age of the vehicle is taken into account while determining the insurance rate. This is the situation due to the depreciation component. As a car becomes older, the wear and tear on its motor components increases. Because the market value is so crucial in determining the insurance cost, newer cars have a higher premium.

Energy Source

Gasoline-powered vehicles are frequently less costly than diesel-powered vehicles. As a result, the cost of insurance for petrol automobiles is lower. Whether you acquire a car that runs on gasoline, diesel, compressed natural gas, or liquid propane, the vehicle's cost has a significant influence on the cost of your insurance coverage. Insuring a gasoline SUV is likely to be less expensive than insuring a diesel car. In addition, installing a CNG or LPG kit in your automobile (SUV or sedan) would almost probably raise your insurance cost.

Take Away

With the introduction of compact and mid-size SUVs, SUV prices have declined in line with automobile prices. Because the pricing is equal, the insurance expenses are comparable. So, whether you're shopping for a sedan or an SUV, the most important factor to consider is the pricing. The sticker price of full-size SUVs is greater, which affects insurance premiums. In India, owning a nice vehicle is not only simple to repair and maintain, but it may also result in higher insurance premiums for the driver. Having such high-end versions, on the other hand, is a source of pride and self-satisfaction as long as they match the owner's own preferences.

Also Read: In A Year, How Many Car Insurance Claims Can You Make?

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This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Saad Ahmad
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 Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Saad in his last work with a major Indian yet global conglomerate has made direct contributions to the Insurance sector. In his free time, Saad likes to play badminton and listen to melancholic music

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