Factors That May Affect Motor Insurance
Numerous variables can affect how much motor insurance costs. When determining the cost of your motor insurance policy, the provider considers several variables to evaluate risk. Therefore, to understand why your motor insurance policy costs what it does, it is necessary to be aware of the factors influencing the premium.
Considerable Factors That Affect The Cost Of Insurance
- Make And Model: A vehicle’s make and model impact the price. Since vehicle insurance is bought to protect the vehicle’s value, the vehicle’s brand and model are also the most prominent factors that affect the price. A less expensive vehicle will also mean a lower insurance deductible. On the other hand, if you own a pricey sports vehicle, you must pay a higher premium.
- Age Of The Vehicle: When calculating 2-wheeler insurance premiums, the vehicle’s age is also considered. To provide policy pricing, every insurance portal requests the age of your vehicle when you purchase a car insurance plan.
- Insured Declared Value – The vehicle’s insured declared value reflects the vehicle’s current market value. The IDV of a motor vehicle is calculated once a year because depreciation reduces the vehicle’s value over time. Since the provider of two-wheeler insurance is only required to reimburse damages up to the vehicle’s worth, the IDV is considered when determining premiums.
- Policy Type – The kind of protection you decide to buy will significantly impact how much your motor vehicle insurance will cost. If you purchase mandatory third-party coverage, the premium cost will be lower. However, it doesn’t accomplish the objective of protecting your vehicle; instead, it merely safeguards you against losses brought on by uninvited parties. By choosing comprehensive insurance, you can have a full defence because your damages will also be covered. ##
- NCB – The No Claim Bonus (NCB) is a reward insurers give policyholders who refrain from making motor insurance claims for the policy year. The NCB is made available as a concession on the premium for the following policy year. This benefit could be increased by up to 50% if you continue to drive safely and maintain a claim-free record. *
- Capacity Of The Engine: The size of the vehicle’s engine is one of the most frequent and essential factors that affect how much vehicle insurance costs. The engine’s cubic capacity determines its size. A motor vehicle with an engine of 75 CC or less will have a lower premium. If your vehicle has a 350 CC engine, you must pay more for insurance coverage. ##
- Anti-Theft Devices- Many motor vehicle insurance providers give concessions for installing security measures endorsed by the Automotive Research Association of India. It implies that if your vehicle has approved safety equipment, your motor insurance rate will be lower because modern technology reduces the likelihood of vehicle theft and loss, which lowers the possibility that insurance companies may provide compensation. ##
The considerations above should be kept in mind when selecting two-wheeler insurance coverage. Knowing these elements will make it simple to choose the right premium for your vehicle and ride it worry-free.
*Standard T&C Apply
##All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
