Car Insurance Quote: An Important Parameter While Choosing Car Insurance
Car Insurance Quote: An Important Parameter While Choosing Car Insurance
Published on February 19, 2020. EST READ TIME: 3 MIN
Motor insurance is essential, which makes it important to choose wisely. You may take quotes from different insurers and compare these to make an informed decision. Searching through online portals to receive the best plans from renowned companies enables you to compare and buy the most beneficial plan instantly.
Factors that determine insurance premium quotes
Car insurance quotes depend on various parameters. Here are four factors that are used to determine the premium amount.
Insured Declared Value (IDV)
Age of vehicle
Location or RTO
Cubic capacity / Engine capacity
Use of Vehicle (Private / Commercial)
Fuel type ( Diesel, Petrol, CNG)
1. Value of the vehicle
The premium is determined based on the insured declared value (IDV), which in simple terms means the value of the vehicle. The IDV is arrived based on MSP (Manufacturer Selling Price) Therefore, if you buy an expensive model, you will have to pay a higher premium and vice versa. Additionally, diesel cars entail higher premium when compared to petrol vehicles. Manufacturing date and registration are also considered. Besides, if your car has expensive or rare spare parts, you may have to pay a higher premium.
2. Purpose
Motor insurance is available for commercial and personal vehicles. If you use the vehicle for commercial purposes, the insurance premium will be higher.
3. Location
Your location and where the car is registered is an important determinant. Insurance companies create zones depending on the vulnerability of the location. Companies generally levy a higher premium in urban areas due to higher incidents of theft, vandalism, and accidents.
Comparing multiple quotes is the best way to procure car insurance quotation. The quotes may vary for the same car and driving history within the same locations. Therefore, taking time to search for the best policies online will help make the right buying decision.
Let us understand how to compare car insurance quotes.
Firstly, you must not form your decision on the price alone. Although saving money on the premium is beneficial, it is not the only criterion. Procuring the least expensive policy may not be the best choice if the insurance company does not promptly pay the claim when required.
You must also compare the coverage being offered by different insurers. Comprehensive policies offer different coverage when compared to a third party liability-only plan. It is important you understand the inclusions and exclusions accurately before making your decision.
Survey time is also an important factor that decides in how much time the surveyor would be able to check your vehicle.
Claim assistance refers to the help or guidance offered by the support team. 24X7 claim assistance would definitely assist you as accidents and unfortunate incidents can happen at any time and anywhere.
Mukesh Kumar| Motor Insurance Expert |36+ years of experience in insurance industry
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