Factors that affect the cost of car insurance for SUVs and Car Types
Insuring your car is mandatory regardless of the type of car you have. Be it a car or an SUV, car insurance is mandatory under the Electric Motor Vehicles Act, 1988. While both types of cars have their unique benefits, you as the ultimate owner can decide on the right type of car to choose depending on your convenience. , design, and budget. But in buying insurance for this type of car or SUV, you need to understand the factors that affect the premium to guarantee the same. Remember, the bigger the price of the car, the bigger the premium.
Listed below are some of the factors that affect the premium for your car insurance coverage
The type of car model, namely the car or SUV you choose, will affect the premium you have to pay to get insurance coverage. Choosing a small and cost-effective model like an SUV will cost you a lot less, whereas buying an elegant car model will cost you a hefty premium. Car IDV Cars will be larger than SUVs, which directly affects the premium.
When calculating the electric motor insurance premium, the age of the vehicle is taken into account. The year of your car provides information about its age. Vehicle deterioration and its devaluation increase as the vehicle ages, thereby lowering the market value of the car. Because the market price is much less, the old car insurance costs will be much less. On the other hand, the insurance premium for a new car will be higher because it has a lower breakdown rate and a higher market price.
Gasoline cars are cheaper than diesel, so gasoline car insurance premiums are cheaper than diesel. An increase in CNG or LPG sets to cars also leads to an increase in premiums.
The engine capacity of the vehicle which is denoted by the cubic capacity (cc) greatly influences the rate of car insurance premiums. The bigger the cc, the bigger the premium and vice versa. This is because a car with a high cubic capacity produces a high output and is therefore more prone to accidents, resulting in a higher premium.
The place of registration of the vehicle affects the premium you have to pay. Every place in India carries a certain type of risk depending on the type of vehicle registered and the accident occurring in the same place. The whole of India is divided into 2 areas namely Area A and Area B. Area A consists of cities and Area B comprises all of India. The premiums for car insurance in Area A are higher because traffic accidents and accident victims are greater simultaneously, increasing the risk of problems being triggered in the car.
The premium to cover your car or SUV depends on the type of insurance coverage you choose. Choosing third party insurance is more affordable than extensive insurance. Third party insurance provides coverage only for injury, death, or damage caused by a 3rd individual or property.
Whereas, extensive insurance provides coverage for problems triggered for your car as well as third parties. With broad insurance plans that offer a wider range of coverage, the premiums for this type of plan are larger than those of third party insurance. In addition, you can get additional coverage with broad coverage by including riders by paying extra premiums. For a new car, opting for a broad coverage is the ideal choice.
Car insurance premiums for your SUV or car are also affected by the adjustments you make. Adjustments made to increase the efficiency of the car or to improve its appearance, increase the value of the car, so that it stands out in its premium upgrades.
Installing any anti-theft device in the car that increases its security and reduces the chances of theft leads to a reduction in the premium.
Whether you are buying an SUV or a car, the car insurance premium will be affected by the factors above. So, before choosing a car, also look at the premiums to get an estimate of the total amount you will need to invest at the time of purchasing the car.