Car Insurance Premium For Comprehensive Car Insurance

Having a car insurance policy is compulsory to drive your car legally on the road according to the Indian Motor Vehicle Act. However, it is more important to ensure that you purchase a policy that offers maximum coverage. Read on to find out how your car model impacts the cost of your comprehensive car insurance. 

What Is Comprehensive Car Insurance? 

A comprehensive car insurance is a standard insurance policy that offers financial assistance for compensating the loss incurred by the third-party in case of any accident as well as for repairs to the policyholder’s car that are caused due to cases apart from collision. 

This policy is more beneficial than third-party car insurance as it offers financial protection to the policyholder too in case of any damage to the car resulting from natural calamities, theft and accidents other than collision. 

How Is Comprehensive Car Insurance Premium Determined? 

Insurance companies have a particular criteria to determine the cost of your car insurance irrespective of the type you choose. The major determinants that impact the cost of your premium are the model of your car, its IDV (Insured Declared Value), the additional covers, and the age of your car. 

• The Model of Your Car 

The model of your car will largely impact the cost of the comprehensive car insurance premium. This is mainly because of the brand value of your car. If you have a luxury car, you are likely to pay a higher premium. The insurance company functions mainly on the risk factor. Replacing or repairing parts of an expensive car will cost more. Thus, they are likely to take a higher premium. At the same time, the settlement amount that you receive will be on the higher end too. 

• The Insured Declared Value 

The IDV of your car is the value that your car has in the market currently. If the market value of your car is high, then the cost of your comprehensive car insurance premium will also be high. It so happens that younger cars which are manufactured by luxury companies like BMW, Audi, Jaguar, etc will have a higher market value than economical car brands like Suzuki, Hyundai, etc. The brand and model of your car thus has a major role to play in the IDV of your car based on which your insurance premium will be determined.

You may also like to read:- How To Compare Comprehensive Car Insurance Plans?  

• The Additional Covers 

Having a standard comprehensive car insurance policy is usually not sufficient to cover all the situations. Some covers like the personal accident cover, no-claim bonus protection cover, etc are very important facilities that the insurance companies provide in terms of add on covers. Adding these covers will increase the cost of your car insurance premium. Most covers are valid only for certain models of cars. Thus, make sure to check with your insurer if the cover is available for your car model.  

• The Age of Your Car

The age of your car is determined by calculating its time of use from the date of purchase or registration. The older your car is, the lower is the cost of your comprehensive car insurance premium. This is mainly because of the depreciation factor. Your car’s auto parts go through wear and tear overtime owing to its regular usage. This reduces the value of these parts. This also varies from model to model as each company uses different auto parts to manufacture the car. Having a luxury car will mean an increased premium rate.

Also read

Comprehensive Car Insurance Explained

Take Away 

A standard comprehensive car insurance can offer you financial assistance to compensate third-party loss during a collision as well as any damage to your car caused by factors other than collision. But of course, the cost of this insurance will vary from company to company and model to model. Make sure to contact your insurance provider to find out the same or check it out online.

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.