Your driving record and motor insurance rates: What to expect

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12 Dec 2023

Road Responsibility: The Link Between Your Driving Record and Motor Insurance Rates

When you get behind the wheel, driving responsibly becomes your duty. This entails adhering to traffic laws, staying attentive, and respecting other drivers. By exercising caution, you can significantly contribute to road safety, reducing accidents and ensuring the well-being of not just yourself but others, too. But did you know that safe driving not only creates a safer environment, it can also impact your car insurance premium? Surprised? Read on to know about motor insurance rates and even Kotak car insurance premiums.

Motor insurance rates:

As a vehicle owner, you may already know that having insurance is mandated by the Motor Vehicle Act. While the rates for third-party liability insurance are standardised by the IRDAI, Insurance Regulatory and Development Authority of India, the comprehensive vehicle insurance rates vary from company to company.

There are a lot of factors that go into determining the motor insurance policy premiums, such as the make, model and variant of your car/ bike, the kind of coverage you chose, the city of registration, the chosen deductible, etc. One of the key factors that can affect your vehicle insurance rates is your driving record. Let us see how.

Your driving record and motor insurance rates

The way you have been driving your car gives the car insurance company a fair idea of the kind of driver you are. If you do not have a good driving record, your insurer might see you as a high-risk customer. You are more likely to be charged a higher premium than someone who drives carefully and is less likely to raise a claim. Someone who has had a few accidents in their records will be seen as a financial liability and thus have to pay more towards their vehicle insurance rates.

Evaluation of your driving record

Let us take a look at some of the factors as per which a motor insurance company evaluates your driving record:

  1. The insurance company will take into account all traffic violations that you have committed. This includes jumping red lights, speeding and incidents of drunk driving. The more the number of violations, the more the premium is.

  2. As a driver, if you have been involved in accidents, their number and severity will be considered by the car insurance company.

  3. Your driving experience as a driver also counts when it comes to finalising your insurance premium. For someone with more driving experience, the premium is less, as they are low-risk drivers. Young and new drivers may have to pay a slightly higher premium.

If you feel your driving record is not the perfect one, fret not! There are some simple ways to make things right. First of all, be alert when you drive and follow traffic rules such as following speed limits, wearing seat belts, having a valid license, etc.

Conclusion

When it comes to road safety, each and every driver plays a crucial role. At Kotak car insurance, we urge all of you to consider driving a moral as well as social responsibility. A road accident can bring you mental, physical, and financial discomfort. Drive carefully, and invest in the right motor insurance policy.

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What is motor insurance and the type of vehicle insurance in india

Benefits Of Car Insurance


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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.