Best Quotes on Top Models
The cost of a car insurance plan is known as premium. The premium for a third party plan is fixed by the Insurance Regulatory and Development Authority (IRDAI) for different engine capacities. However, the premium for standalone own-damage and comprehensive car insurance plans depend on a number of factors such as extent of coverage, make, model and variant of the car, type of fuel, RTO location etc.
Frequently Asked Questions (FAQ's)
What does a car insurance premium mean?The car insurance premium refers to the cost of the insurance plan taken for the car.
Is the premium for comprehensive car insurance the same for all cars?No, the premium for comprehensive car insurance is not the same for all cars. The premium for the plan varies depending upon the MMV (make, model and variant) of the car, its engine capacity, its age, the add-ons opted for and a number of other factors.
How can I lower the insurance premium for my car?You can lower the insurance premium for your car by following the below-mentioned tips:
- Always compare the plans offered by different insurance companies and select the one which best suits your requirement.
- Install ARAI (Automotive Research Association of India) approved anti theft devices in your car and get a discount of 2.5% (up to Rs. 500) on the own-damage premium of your car insurance policy.
- If you are a member of the Automobile Association of India (AAI) then you are eligible for a discount on your car insurance premium amount.
- Avoid making claims for small expenses so that you can keep your No Claim Bonus (NCB) discount intact.
- Always transfer your NCB at the time of policy renewal.
How does the age of the car affect the car insurance premium?The Insured Declared Value (IDV) offered by an insurance company for an old or aged car is lower than that of a new car. Age of a car affects the IDV because of the depreciation loss suffered by the car. Thus, the premium amount for aged cars is lower than that of brand new cars.