Understanding the key factors that influence car insurance rates

Car insurance is a necessity, but it doesn't have to drain your bank account every time you renew your policy. If you can understand the factors that influence car insurance costs, you might be able to tilt the odds in your favour. This way, you'll be able to secure an affordable car insurance plan such as Zurich Kotak Car Insurance plan, without sacrificing the coverage you need.

Here are the factors that you need to bear in mind.

1. Insured declared value (IDV):

The insured declared value, or IDV is the current market value of your car. When it comes to the IDV, most insurers give you a range from which you can choose the most appropriate value for your car. IDV is your car's current worth, taking into account depreciation. As time goes by, the IDV of your car naturally goes down as your car loses value due to depreciation. The higher the IDV, the more you'll pay for your car insurance.

2. Location:

When buying insurance for your car, you may come across that it's often more expensive in a big city compared to a smaller, less urban area. This is because cars in urban settings are considered to be at a higher risk of getting damaged. Factors such as heavy traffic and crowded streets in places like Mumbai, Delhi, Bangalore etc. lead to accidents happening more frequently.

3. Required coverage:

The amount you pay for your car insurance online depends on how much coverage your car needs. While third-party coverage is the minimal mandate, opting for comprehensive car insurance means a higher premium as the coverage is enhanced. The cost of your insurance premium also goes up if you include add-ons like zero-depreciation coverage, consumable cover, NCB protection and more.

4. Make, model and variant:

The premium you pay for insuring a luxury sedan will be higher compared to a compact hatchback because of the inherent differences in these vehicles. Your car's manufacturer, type, engine size, and other factors directly affect your car insurance online premium.

5. Anti-theft devices:

Installing an anti-theft device certified by the Automotive Research Association of India (ARAI) on your vehicle could lead to a reduction in your car insurance premium.

6. No Claims Bonus (NCB):

If you haven't claimed in your previous policy period, insurance companies often offer a discount on your car insurance online premium when you renew. Avoid rushing to file a claim; evaluate the NCB benefit (if applicable) first and then decide if it's worth making a claim.

7. Deductibles:

You can choose a voluntary deductible to lower your insurance premium. Essentially, this means you'll contribute a predetermined amount toward any claims. As the insurance company pays out less when settling a claim, it charges a lower premium.

8. Choice of seller:

When buying car insurance, it's often more cost-effective to compare before you purchase car insurance. You can look for some good deals and discounts with Zurich Kotak Car Insurance.

Conclusion

Knowledge of these factors makes you aware of what impacts car insurance costs. You can make the right decisions to find affordable car insurance quotes without compromising on the coverage you require. With Zurich Kotak Car Insurance online check, you can explore the multiple options that you have.

Related blogs

How To Reduce The Cost Of Your Motor Insurance Renewal

Understanding the cost of hatchback car insurance

Smart strategies: 5 methods to compare car insurance and trim your premium costs