Know Car Insurance Price Of A Hatchback Compact Cars

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

Know Car Insurance Price Of A Hatchback Compact Cars

Hatchbacks are comparatively inexpensive and very versatile cars, suitable if you often travel alone, and also suitable for a family. They are very popular cars in India and are also quite affordable. The cost of insuring a hatchback varies depending on the price of the car, but most importantly, it is affected by factors known as insurance premium variables. Regulations dictate that you pay the cost of third party car insurance upfront, and that personal accident cover is compulsory. These factors will hike the overall cost of the premium but it is advisable to be aware of all the factors influencing the insurance premium, and to know of their impact.

Factors Influencing Hatchback Car Insurance Premium

The following factors known as car insurance premium variables will have an impact on the premium you pay to insure your hatchback. Being aware of them can save you unnecessary expenditure.

1. Ex-showroom price and Insurance Declared Value

Insurance Declared Value (IDV) refers to the value of the car declared by the insurance company. It is based on a percentage of the ex-showroom price. This has a direct impact on the cost of insurance premiums.

2. Number and Types of Add-ons

A standard car insurance policy provides coverage for a considerable range of damages to the car. Along with the basic car insurance policy, however, one can avail of a range of add-on options that provide additional coverage in varied and specific scenarios. These are available at an additional premium and thus increase the cost of insurance at the time of purchase. However, they are useful to save a considerable amount of money at the time of raising claims and are thus advisable to purchase.

3. NCB Discount

NCB refers to No Claim Bonus. This is a discount offered to policyholders by insurance companies if no claims are raised during the policy tenure. It is cumulative in nature and increases over the years if a claim-free record is maintained, and is applicable at the time of renewing the policy. Therefore if you do not raise any claims during the policy period you can be eligible for a sizable discount at the time of renewal. This is not applicable at the time of purchasing a new policy, however, except in cases when the NCB is being transferred. It thus saves you money at the time of policy renewal.

4. Insurance Deductibles

Deductibles refer to a price that has to be paid at the time of claim settlement. If you opt for voluntary deductible it means that you are declaring you will pay a certain portion of the claim amount at the time of raising a claim. This will have an impact on the premium and secure you a discount on the same.

Approximate Car Insurance Price of Popular Hatchbacks

Popular Hatchbacks Car Model	Car Insurance Price
Maruti Swift	Rs. 12,000 to 22,000
Maruti Suzuki Baleno	Rs. 15,000 to 20,000
Tata Tiago	Rs. 10,000 to 15,000
Hyundai Elite i20	Rs. 20,000 to 25,000
Maruti Suzuki Celerio	Rs. 12,000 to 15,000

Conclusion

By keeping these variables in mind therefore it is possible to make an informed decision about the premium that you would pay for your hatchback car. While it may be costly, a carefully considered insurance policy will only save you money in the long run.

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.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.