Factors affecting car insurance premium
By Neelima Shankar
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Cars are increasingly gaining threshold towards being a necessity rather than a luxury for people today. With superbly rising number of vehicles, both two and four wheelers hitting the Indian roads, the concept of auto insurance is also gaining impetus. Car insurance- a term commonly used and applied in the West since long was not known and used widely in India for quite some time back. But now buying a vehicle and getting it insured both run hand in hand for people here too.

Any kind of insurance involves two entities- the insurer, which is the company giving insurance cover and the insured who is taking the cover. The insurer agrees to pay the insured in case of losses incurred to the insured property (vehicle in case of auto insurance) under set terms and conditions. This payment is done on the basis of a regular set of payments which the insured person makes to the insurer. This set of payments is known as insurance premium. Rupeetimes auto insurance calculator allows you to calculate the premium for the vehicle of your choice.

With a vast variety of insurance offers being placed competitively for the customer by insurance companies, it becomes difficult at times to select the right policy with the right premium and cover. There are several elements which act as decisive factors in estimating the premium that a person has to pay for his insured vehicle.

Some common factors which are taken into consideration while deciding insurance premium are as follows:

1.Make and model of the vehicle

Insurance premium varies from vehicle to vehicle. If the vehicle is a high-end one like BMW, Audi and others, then it will have larger cover than a medium to low end vehicle and thus higher premium.

2.Place of registration

Place of registration has an important role to play in deciding the premium. Zones which are earthquake prone or with increased chances of terrorist attacks like the north eastern belt of India have higher insurance cover to vehicles than other areas.

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(Comments Posted : 2) Post Your Comments
1. it does Rahul, the wdv of the car affects the premium
Leo (Posted: May 23, 2012)
2. Thanks for the post.
I was looking for the same info..
Doesn't price of car affect the premium?

With regards,
Rahul (Posted: Mar 29, 2012)
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