Image default
Business

Is Your Car Insurance Premium Going Up? Here’s Probably Why

In India, car insurance is required, but do we know how it works? The typical insurance policy is good for a year, but the cost of the premiums may change while you own the vehicle. Contrary to popular belief, your premiums might increase even if you never file a claim or your car gets older. What determines why insurance premiums increase even when you take sufficient precautions?

The third-party insurance cover, which protects your car from any third-party damages in the event of an accident and is required by the Motor Vehicle Act of 1988 for all vehicles operating on public roads, is one of the most important contributing factors.

Third-Party premium rates typically undergo annual revisions based on a variety of factors. This premium is governed by the Ministry of Road Transport and Highways in collaboration with the Insurance Regulatory and Development Authority of India (IRDAI).#

However, several other factors can result in you paying a higher car insurance premium than usual claim history, geographic location, insured declared value, etc. Here are a few of these causes:

  1. Gaps in vehicle age & renewal

Even if a car is in good condition, ageing makes it more vulnerable to damage. Because of this, insurance companies have to raise their premiums. A longer gap between insurance policies and a delay in renewal may also result in a higher premium, particularly if the insurance provider needs to inspect the vehicle.

  1. Add-ons

Higher premiums can also result from selecting an add-on cover, like an own-damage cover, or choosing two separate policies instead of a comprehensive one. Always research and plan to keep your insurance purchases as affordable as possible. *

  1. Driver Profile

A driver with a history of making numerous claims will likely face increased scrutiny from an insurance company. In addition to putting your life in danger, causing accidents and filing claims makes you a less-than-ideal driver for a service provider. Therefore, drive safely to reduce your car insurance prices.

  1. Modifications

You might want to alter your vehicle’s mechanical or structural components or its performance in general. It may directly impact your insurance premium, particularly if an inspection is necessary due to a delayed renewal. You shouldn’t be surprised by a higher insurance premium if you don’t subscribe to the “stock is best” school of thought.

Along with keeping the above factors in mind, follow these quick steps to ensure that your auto insurance premium is reduced:

  1. Avoid filing small claims
  2. Renew your automobile insurance promptly
  3. Renew coverage online with the insurance company

New car insurance is generally not as challenging as it first appears. It would help if you used this straightforward convenience well because it could be useful in stressful circumstances like accidents. Before buying a policy, read the policy documents comprehensively to ensure you know what you’re getting into. Do your research, thoroughly understand the market and then buy the insurance. Make those savings while remaining compliant with the law, by all means!##

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Related posts

How can Instagram Followers Impact your Business or Account?

Ann Ellison

All About Modified Bitumen VS Roll Roofing

Ann Ellison

Developing A Substantial CFD Trading Routine

Ann Ellison