Know if the car colour affects your car insurance premium


30 Jun 2022

Learn about how does car's colour affect your insurance premium. Check out the car insurance policy from Kotak General Insurance for more information.

When you go on to fulfil your dream of buying a new four-wheeler, you will indeed explore several brands, models, features & much more. After detailed research, when you finally select the car brand, the most confusing and exciting part is picking the car’s colour. The choice of colour has no major impact on the car insurance premium.

So, if you have purchased a car colour which may be expensive to maintain in the long run, which may impact your car purchase price, then insurance company may charge a bit higher premium. Whether you choose white, red, or black colour, we at Kotak general insurance rarely consider your car’s colour to deciding the cost of the premium unless the colour of the car increases your IDV (Insured Declared value). Even insurers do not ask for vehicle colour during the underwriting process. They typically ask for vehicle identification numbers.

Typically, the car’s colour has an impact on the vehicle’s resale value. So, if you are worried about the premium rates, the colour you choose won’t have much effect on your car insurance premiums. In fact, the factors that really need your attention while assessing the car insurance cost are as follows:

• Car model, make, and variant:

The car model and variant is also a factor that affect the insurance premium rates. High-end cars, such as vintage or sports cars, have higher insurance premiums. Similarly cars that have higher cubic capacity have a higher premium.

• Fuel type:

The insurance premium for diesel cars is higher than cars driven on petrol or CNG as the IDV of the diesel cars are higher than its fuel counterparts.

• Insured Declared Value (IDV):

IDV is an amount decided by the insurance provider which is paid to the car owner incase if the car damage is beyond repair. The amount is set at the current market value of the car. Setting a higher IDV means higher premium rates.

• Location:

If you dwell in areas with higher traffic, you would be giving more premium compared to the same car driven in a place with less traffic.

• Age and gender:

Women travellers are considered safe drivers compared to male counterparts; hence, the premium charges for cars driven by women are low compared to male drivers. Similarly, drivers who are experienced or have a good past record for driving pay lesser premium than drivers who have just started driving.

• Type of coverage:

Comprehensive insurance policy has higher coverage as compared to third party insurance or own damage insurance but the premium paid for this insurance policy is higher. Although Comprehensive insurance plans like Kotak Car secure provide you dual coverage of third party insurance and own damage insurance along with Personal Cover.

Before you buy a car insurance policy, it is fairly easy to understand the price of your policy with the help of Kotak General Insurance’s car insurance premium calculator online. To use this online tool, all you need to do is fill in the details related to you and your car, and the premium amount will be automatically calculated. You can refer to this estimate, and based on this; you can decide how you can make the car insurance premium that suits your pocket.

If you have got a new four-wheeler and exploring car insurance options, then you can opt for Kotak Car Secure by Kotak General Insurance. This is a comprehensive insurance plan that will help to protect you and your car from all kinds of damage, even third-party liabilities.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.