Car Insurance Quote: An Important Factor To Consider While Choosing Car Insurance

2 Age of vehicle

3 Location or RTO

4 Cubic capacity / Engine capacity

5 Use of Vehicle (Private / Commercial)

6 Fuel type ( Diesel, Petrol, CNG)

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 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 a 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.

Car Insurance Quote: An Important Factor To Consider While Choosing Car Insurance

 Purpose

Motor insurance is available for commercial and personal vehicles. If you use the vehicle for commercial purposes, the insurance premium will be higher.

Location

Your location and where the car is registered is 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.

Car Insurance Quote: An Important Factor To Consider While Choosing Car Insurance

Comparing multiple quotes is the best way to procure a 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.

Below are ways 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.

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Here are reasons why drivers should always check if their insurance premiums are still competitive:

Insurance premiums change frequently. There are many different risk factors that happen throughout the year and the insurers are required to adjust insurance prices. The premiums can fluctuate even from one day to another. Drivers won’t notice the insurance price changes that happen daily, but in a period of six months, there can be differences that can be quite significant.

Changes in the credit score. Insurance companies are using the drivers’ credit scores in order to determine their insurance rates. Drivers that have good or excellent credit scores will pay insurance premiums that are significantly cheaper than the premiums paid by drivers that have a poor credit score.

The vehicle value depreciates over time. Cars are continuously losing value from the moment they leave the showroom. Policyholders should pay less on the insurance of their older vehicles.

Drivers should contact their insurers and see if they are willing to adjust the price of insurance. However, in most cases, the insurers will refuse to do that. If that happens, drivers should look for another insurance provider.