Know the benefits and factors that affect car insurance quote


04 Aug 2023

Get a better understanding of how car insurance quotes are calculated with our guide. Learn about the benefits of shopping around and the factors that impact your premium.

It's vital to get vehicle insurance quotes before purchasing car insurance. This post mentions the benefits and factors that can affect a vehicle insurance quote. Keep reading.

Cars are an expensive but essential piece of asset. However, cars are exposed to many threats and dangers the moment you drive them out of the showroom. That is why it is essential to take care of your car and cover it with a suitable vehicle insurance policy.

But car insurance itself can be costly.

Hence, getting a car insurance quote is crucial before you buy four-wheeler insurance.

Car insurance quote

A car insurance quote is the estimated insurance premium price an insurer provides based on various factors. Comparing car insurance prices from different insurers can help you identify the plans that offer the best insurance at a reasonable price.

Moreover, insurance quotes can help you identify reliable companies by reviewing crucial parameters like claim settlement ratio, ease of claim filing, etc.

The many benefits of asking for car insurance quotes

Asking for car insurance quotes from insurance providers can help you in many ways, such as-

• Buy the most reasonable car insurance policy

• Identify the Insured Declared Value of the vehicle

• Understand the impact of various add-ons

• Know the extent of the coverage

• Make an informed buying decision

7 Factors that affect car insurance quote

1. Type of insurance cover

The first and foremost factor affecting a car insurance quote is your choice of insurance coverage.

If you want to purchase only mandatory third-party insurance, the premium prices would be less costly. Moreover, the third-party insurance premium is the same across all insurance providers, as the IRDA sets the premium based on the cubic capacity of the car. However, third-party insurance doesn't cover the damages caused to your own vehicle.

Therefore, consider purchasing comprehensive car insurance, which covers both third-party liabilities and own damage. A comprehensive car insurance price can be costlier than a standalone third-party insurance. However, it can save you a significant amount of money in the event of your car suffering damages due to accidents, natural calamities, or other disasters.

A comprehensive car insurance premium can differ based on the insurance provider you choose and other factors such as IDV, add-ons, NCB discounts, etc.

2. Age of the car

A car undergoes natural wear and tear with time. Consequently, its value depreciates over a period, reflecting on the insurance premium quotes. You'll be charged a higher premium if your car is new compared to the premium charged for an older car.

3. Insured declared value (IDV)

IDV is the current market value of your car determined by the insurer. The insurer determines the IDV of a vehicle by subtracting its depreciated value from its original selling price. Your comprehensive car insurance price will be lower if your car has a low IDV.

Here, following the guidelines set by the IDV to ensure you are optimally protected is crucial. That's because even if you have a higher IDV, the insurer will settle the claim as per the rules set by the IRDA regarding the same.

4. Safety features

Safety features in a car, like gear locks, airbags, anti-theft devices, etc., decrease the overall driving risk and improve passenger safety. Therefore, insurance providers charge lower comprehensive insurance premiums for cars having adequate safety features.

5. Geographic location of residence

Car insurance premium prices can differ depending on your place of residence. This is because some cities have greater vehicular traffic and can pose a higher risk of accidents compared to others.

6. Car model

A car designed to provide great speed and driving performance can possess greater risk than an economical vehicle that provides fuel efficiency. Consequently, your insurer may charge a higher premium for a performance-driven car with greater engine power than a modest family car with lower engine power.

7. Add-ons

Insurers offer various optional add-ons with comprehensive car insurance. You can purchase these add-ons by paying an additional premium amount. This can increase your car insurance price. So, be careful and opt for useful ones that you actually need. Some of the important add-ons you can consider are-

• 24/7 Roadside Assistance

• Engine Protect

• Return to Invoice

• Depreciation Cover

• Consumables Cover

• Tyre Protection

You must have done proper research before purchasing your dream car. So, why be complacent about car insurance which can be vital in saving you from potential future hassles? Therefore, take your time, compare car insurance quotes and gift yourself a comprehensive four-wheeler insurance plan best suited for your needs. At Kotak General Insurance we allow you to compare between different car insurance plans and choose the quote that best fits your vehicle.

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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.