If you are planning to buy a car, or have recently done so, purchasing car insurance should be on the top of your list. Motor insurance that covers third-party liability is compulsory as outlined by the 2019 Motor Vehicles Act of India.
You can make use of a car insurance calculator such as the one available on Finserv MARKETS to choose a plan with an affordable premium. However, you should keep in mind that certain factors can increase your chances of paying a higher premium. Some of these include:
- Breaking traffic rules: If you are a beginner at driving, you might be able to fetch a car insurance premium that is in your budget, since you do not have any traffic violations to your credit. However, if you are an experienced driver with a record of having violated traffic guidelines, you can expect to be charged a higher premium for your car insurance policy. Some traffic offenses might attract more increases in premium as compared to others.
- Car accident: If you are involved in an accident that was caused due to your fault while driving on the road, a claim is filed against you. This could lead to you ending up paying more premium charges as reflected in the car insurance calculator online. This is why it is important to drive cautiously on the road. While some policies may have a payout clause, others may offer a one-time at-fault accident claim facility for your convenience.
- Your age: Car insurance premiums are directly proportional to your age. As you get older, your physical capabilities start to decline, and hence when you fill in your details in the car insurance calculator, your premium might turn out to be more expensive than you imagined. It is wiser to buy motor insurance early in life to avoid such a situation.
- Comprehensive claims: While a comprehensive car insurance plan offers greater protection against unforeseen dangers, it also comes with an added cost. You should enquire from the insurance provider about their terms and conditions for comprehensive claims and understand what could lead to a hike in premiums. In most cases, this may be due to multiple claims against you or the claim amount exceeding what is specified by the insurer.
- Renewal lapse: If you fail to renew your car insurance within the grace period mentioned by the company, your policy lapses. Not only will you end up paying reinstatement charges, but you might also have to shell out more money towards the premium to get a policy with the same terms as the earlier one. Remember to renew your policy on time as well as be aware of the terms and conditions of your insurance company related to policy lapse.
- Credit score: Your credit score is not only a criterion for getting a loan approved but for getting a pocket-friendly premium rate when getting your car insured. If you enter a higher credit score when filling your details in the car insurance calculator, you might get a lower premium as compared to someone with a poor credit score.
These are some of the criteria that influence the premium rate of your car insurance. Being mindful of these can help you get your car insured at a reasonable premium and get protected against personal accidents and other dangers that may cause damage to you or your vehicle.
Car insurance available on Finserv MARKETS offers you cashless claims for repair and maintenance across more than 4000 garages pan India with 24X7 roadside assistance in an emergency. Use the car insurance calculator available online to compare plans, know the premium payable, and make the right choice. What’s more, you can also renew your plan easily online to avoid paying a higher premium!