Are You Aware of Those Factors That Determine Your Car Insurance Premium?

Since car insurance is a legal obligation in India as per motor vehicle act, you cannot keep away from having the one. Regardless of whether you opt for a car insurance plan with liability coverage or comprehensive coverage, you have to pay certain premium. If you go for an annual motor insurance plan, you have to make the premium payment on a yearly basis and if you go for a long-term car insurance plan, you have to pay before the term of your car insurance expires. But in any case, you have to keep on paying a premium as long as you will drive your car. As there is no escape from spending money on your car insurance policy, you should learn ways to keep your premium outgo reduced. Especially, if you avail enhanced coverage or add-on covers you have to pay an additional premium. Being aware of the avenues that help minimize car insurance premium would help you strike a balance between your investment and the protection you get in return. Read on to find out what factors actually influence premium of online car insurance policies in India and how you can use them to lower the premium amount.

Car Insurance Premium Determining Factors That You Cannot Control

• The make and model, age, IDV and the cubic capacity of your car play a pivot role in working out car insurance premium.
• A profession of car-owners in India also influences the premium calculation of online car insurance plans. Usually, car insurance companies in India consider some professions as less risky such as teachers, bankers than professions like sales executives and marketing professional and reward them with a reduction on their motor insurance online premium outgo. But you cannot change your profession to avail discount on your car insurance premium.

Motor Insurance Premium Determining Factors That You Can Control

• All car insurance online companies in India reward car-owners with NCB for not making any claim on their online motor insurance plan. If you refrain from making claim for 5 years, you can accumulate 50% NCB and get your car insurance premium reduced to half. NCB is usually provided at the time of your car insurance renewal.
• Your driving record also plays an instrumental role in calculating the motor insurance premium. If you drive your car safely and avoid mishaps on road, you can attract lower premium when you renew your car insurance plan. But if you get involved in road accidents frequently, your online car insurance premium will not only increase, but your insurer can also terminate your car insurance plan on the ground of being too risky to cover.
• If you install modern and advanced security features such as airbags, anti-break locking system, you can reduce your risk to your car insurance provider and be eligible for a discount on their car insurance online premium.
• Similarly, by enrolling in a recognized automobile association in India, you can also be entitled to reduced premium on your car insurance policy.

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