Factors That Influence Car Insurance Premium For SUV And Sedan
Factors That Influence Car Insurance Premium For SUV And Sedan
Table of Contents
In a country like India it is mandatory to have car insurance, to drive on the roads. There are several factors that influence the premium of our car insurance.
The meaning of Sedan is that it is a type of a car which has four wheels, four doors along with a low ground clearance.
An SUV is a Sports Utility Vehicle, which is a type of car having four doors as well as four wheels but with a high ground clearance.
Generally it is seen that the premiums for SUVs are more as compared to the sedans. The reason for this is that the Sedans are risky for insurance because of the weight and size which makes them difficult to drive on roads.
Some of the Factors that Influence Premium for SUV and Sedan
When we are spending so much on premiums so we would definitely like to know about the factors that are affecting the rates of the premiums both for SUVs and Sedan. So let us read about the factors that are mentioned below-
1. The Model and Make of our Vehicle
The make and model of a vehicle is one of the influence factors for the rates of the premiums. There are some specific models which tend to be much more expensive for insurance.
So whenever we are planning to buy a car it is important for us to review the insurance rates.
2. Driving Record
It is one of the most critical factors, as if we are one of the low risk drivers then the insurance company will give us premiums with lower rates but if we are considered as a higher risk drivers then our premiums will also be high so that in case of any accidents we can claim higher compensation.
3. Location
Location is also one of the prime factors because if we live in an area of higher crime rate, we have to pay more for premiums as compared to people living in areas of lower crime rate.
4. Amount of Coverage
The amount of coverage will also influence our insurance rates, as if we need minimum coverage then we can pay less premiums otherwise for higher coverage the rates will also be higher.
5. Type of Engines
The type of engine is also considered influential for setting the rates. Petrol cars will have the lowest premiums, whereas diesel and CNG will have the highest rates of premiums for insurance.
Conclusion
We got to know about the SUVs and Sedans and how they impact our insurance rate. Earlier we didn't pay heed before buying a car and in return used to complain about paying higher premiums for car insurance. Now when we get to learn about the factors that are influencing the rates, we will be careful enough to pay attention to each and every factor before buying any SUV or Sedan. And one thing that is very important is that one must compare the rates from various insurance companies to get the best deal.
Also read: Everything You Need to Know About Car Insurance's Compulsory Personal Accident Coverage
