Having a car insurance is essential to shield yourself and your co-passengers against a host of unforeseen and negative consequences. Many things can happen while driving, hence, it’s necessary to take precautionary steps. Just like wearing a seat belt while driving is necessary, so is your car insurance. Most people know that their driving record will have a bearing on their premium. But, not many are aware of the fact that their car model can also determine the premium they pay.
All aspects of your car like the model, manufacturing brand and make will affect your car insurance payments. To avail all its benefits, make sure to do your car insurance renewal on time.
Year, Model and Make
As mentioned before, all these factors will impact your car insurance premiums. The age of the vehicle will dictate your premium payments to a larger extent. As your car gets older, its market value continues to steadily depreciate. This means less money will be required for repairing or replacing its parts. Hence, it’s cheaper to insure older cars as insurers know that they won’t have to make large pay-outs. It’s common knowledge that the values of different cars depreciate at different rates.
Expensive luxury cars will have a higher premium as their market values are relatively higher. Besides, the cost of repairs and parts replacement for such cars would be expensive, therefore you will be required to pay high premiums for them.
You can expect different premiums for two car models manufactured by the same company/brand. This is because even the smallest of difference between car models will have a bearing on your premium. For example, a sedan might be less expensive to insure as compared to the coupe version of the same car. The same holds true for sports cars as they are more prone to theft and accidents.
Risk of Burglary
Some car models are more susceptible to theft as compared to other ones. Yes, even car thieves can be picky! Insurance companies generally refer to statistics that show the frequency of theft for every car model. This helps them ascertain the probability of your car getting stolen in the future. Sadly, certain cars are stolen on a consistent basis and often are expensive to insure. This is because the insurer is assuming a higher risk while insuring your vehicle.
Having said that, there is a secret to circumvent high-premiums if your car falls within the high-risk for theft category. Installing anti-theft devices will help reducing your premium marginally while enhancing the security features of your four-wheeler. The next time you go shopping for a new car, ensure that it’s not the preferred model of car thieves.
Risk and Value
Apart from the previously discussed factors, other essentials that’ll determine your car insurance premium are the current market value of your car and its susceptibility to accidents. Your car value will dictate an important part of your policy known as the collision portion. This aspect of your insurance can greatly increase or bring down the premium. However, by choosing to drop this portion from the coverage, you risk spending large amounts of your personal money for repairs or parts replacement.
You must also know that accident statistics of your car model will greatly impact the liability and accident benefits portion of your car insurance.
Head over to the Bajaj Allianz General Insurance website and use car insurance premium calculator to get a fair idea. Make sure to buy your car insurance online to get some of the best deals available.