When a customer buys car insurance from any insurance-company then he needs to sign-up one official contract or agreement. In this contract, the insurer promises to the customer paying for defined car-loses mentioned within the concerned insurance-policy in exchange of car insurance premium paid by customer.
Nowadays, customers are receiving innumerable value-added services from auto-insurance companies out of which instant-quotes for car insurance plan deserves special mention. These quotes are usually provided to interested or prospective customers.
These quotes enable customers having a fair idea about the accurate premium-amount that they suppose to pay for their required insurance-coverage. Now, an advanced premium-calculator is getting used by official websites of both third-party insurance and insurers. Instant premium-quotes can be easily received with the help of this calculator.
Factors for determining auto-insurance premium:
Some important factors on the basis of which motor insurance premium are being calculated are as follows:
- Vehicle’s manufacturing-year:
Manufacturing-year needs to be determined for ascertain the vehicle-age. New-cars have got comparatively higher premiums than that of older ones and vice-versa.
- Car’s registration-place:
Your residential-location and car-registration placetogether create a huge impact over the determination of auto-insurance premium. Insurance-zones are based on vehicle’s vulnerability either damage or loss while operating on specific areas. Small-town or rural-area car-owners always pay much less than urban drivers.
- Present showroom-cost:
Insured-Declared-Value is the most important factor on which premium-amount is largely dependable. IDV is nothing but car’s market-value. To be precise, if car’s cost is higher then premium-cost will also go up.
- Car model:
Premiums for high-end SUVs, sedans and other important vehicle-brands are higher than local ones. Therefore, while filling-up the insurance-contract you have to mention your car’s brand so that the insurer can calculate the exact quote.
- Car purpose:
Car insurance India has been majorly categorized into two broad categories, one is commercial and the other one is personal or domestic. Higher premiums need to be paid for commercial-cars and this is quite an obvious thing. In fact, this is the very reason that it is highly essential for mentioning the car-purpose especially while purchasing car insurance online.
- Claims history:
If you have currently put forward any claim then your vehicle’s premium for the next year will surely get increased. No-claim bonus can be acquired if you have not raised any claims and this bonus will soon get converted in go discounted premium for upcoming years.
- Safety devices:
Those cars equipped with multiple safety-devices especially anti-theft devices, advanced braking-systems, robust-locks, air bags and others always attract lower premium as they are associated with lower risks. Those models that are more prone towards damages are highly risky to deal with and thus higher premiums need to be paid for them. Safest features should be ARAI approved and you can get almost 2.5 percentage of premium discount for that. In short, if you really wish enjoying a discounted premium on your car insurance then nothing can be the best way other than buying the safest car.
Another popular approach to get a reduced premium is to compare car insurance quotes by different insurers. For that you have to visit the websites of most popular auto-insurers and then only you will get the chance of comparing the available quotes.
Once you have agreed on a certain quote you have to pay off the same when you want to renew car insurance. You can now get your car-premium renewed from the same insurer only. In this case, you have to get into the website once again for making the premium paid in order to fulfill the purpose of premium renewing.