How Your Car Types Affect Your Car Insurance Premium?
The car insurance premiums are affected by several factors such as one’s driving habits, driving record, anti-theft devices, etc. But the type of car that one possesses can significantly affect its insurance premiums as well.
All car owners must buy insurance to drive on Indian roads, but the concept of this vehicle insurance is becoming complicated with years. The car insurance premiums are determined based on several features such as the driving record of the individual, presence of advanced anti-theft devices in the car, its voluntary deductibles, age of the driver, etc. But what is amusing about car owners is that the type of the car also reflects on its insurance premiums. The higher the cost of the car, the higher will be its insurance premiums.
How Does the Type of the Car Affect its Insurance Premium?
Some of the cards are indeed costly to insure and there is a strong relationship between the car type and the cost of the premium, and both these factors are directly proportional to each other. The three common types of cars that are available in India are Hatchbacks, Sedans, and Sports Utility Vehicles. The hatchback costs less than the sedan and SUV and it costs less to get insured as well. Some points why the insurance premium should be based on the type of the car are as follows:
1. Make and Model of the Car:
The make of the car corresponds to its brand and the name of the manufacturers and the model of the car refers to the particular label of the vehicle. There is also another entity used to refer to the car, namely its version or variant, which is the particular label, that is used to identify the car.
The insurance premiums will be different for each variant of the same model of the car, from the same manufacturer. This is because each variant is made unique and will have costly parts than its counter variants.
If the vehicle uses advanced features and specifications, then the cost of its insurance will be more, as these vehicles are costly to repair and their parts are hard to replace. The additional cost that is used to repair these vehicles and replace their parts, in the event of an accident or damage, will be covered by the car insurance company in terms of higher premiums.
2. Type of Fuel:
The car insurance premium will also differ depending on the type of fuel that the car uses, such as petrol, diesel, CNG, LPG, and electric engine. For Vehicles that run on CNG, the premium amount is increased by at least Rs. 60 with additional taxes for third-party liability insurance. The premium amount will also vary depending on whether the CNG kit is fitted internally or externally.
3. Engine Cubic Capacity:
Different types of cars have different cubic capacity engines and this will directly reflect on the car insurance premium. Vehicles with a larger engine capacity will have higher premiums. Similarly, the age of the car affects the premium, as it affects the insured declared value of the vehicle. Premiums of aged cars will be lower than brand new cars.
Thus having a fancy car in India is not tough to repair and maintain, but can also invite higher premiums for the vehicle owner. Nevertheless, holding such high-end variants is a matter of pride and self-satisfaction as long as it yields to the personal aesthetics of the owner.
Disclaimer: 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.