Know How These 9 Variables Affect Motor Insurance Premiums

The amount you pay to the insurance provider to purchase or renew your auto insurance policy is known as the car insurance premium. After paying the payment, you get a copy of the policy. That is how transactions work in the auto insurance sector.

9 factors that affect car insurance premiums 

When you decide to purchase or renew auto insurance, the insurance premium is a crucial consideration. Unquestionably, it’s crucial to purchase cost-effective coverage, but it shouldn’t leave you underinsured.

You should be aware of the following elements that affect how much you pay for auto insurance in order to guarantee that you purchase a cost-effective policy with sufficient coverage.

1) Brand, model, and variant: 

In comparison to a hatchback, a luxury sedan will have a higher insurance rate. This is due to the vehicle’s fundamental design. Because of this, the manufacturer, model, engine size, etc., of your car will all directly affect the cost of your bajaj motor insurance. *

2) Age: 

The age of the vehicle takes into account Insured Declared Value and Depreciation, two crucial auto insurance concepts (IDV). These two ideas are related to one another. Depreciation is the decrease in asset value brought on by normal wear and tear over time. And IDV can be thought of as the car’s approximative current market worth. *

An ancient car often has less IDV and more depreciation. As a result, it will be more economical to insure an old car and more expensive to insure a new one. *

3) Location: 

Car insurance in a metro area will be more expensive than in a tier 3 city. This is due to the perception that the car is vulnerable to harm in an urban environment. For instance, in a city like Mumbai, accidents commonly occur due to factors like rising traffic, congested roadways, etc. 

4) Cover: 

In India, it is necessary to have a fundamental third-party policy. It provides protection from third-party liability. A comprehensive bajaj motor insurance plan, on the other hand, includes coverage for both Own Damage and Third Party Liabilities. *

5) Add-ons:

Add-ons provide additional security. Additionally, extras are typically not free. This also holds true for insurance. Your premium will go up if you add add-ons like Zero Depreciation, Passenger Cover, etc. *

6) No Claim Bonus (NCB): 

If you didn’t file a claim during the previous policy period, insurance providers would lower your rate (for vehicle insurance renewal). Do not make a claim right away. Before submitting a claim, take a look at the NCB component (if applicable), and then consider whether or not it makes sense to submit a claim. *

7) Deductibles  

If you desire to lower the cost of your bajaj allianz motor insurance, you can choose a voluntary deductible. In essence, this means that you will make a fixed contribution to the claim amount. As a result, the insurance provider must spend less to resolve a claim and can lower premiums. *

8) Vendor: 

If you buy auto insurance via a broker, the broker is required to make a commission for their services. It’s possible that if you buy it from a car dealer, the dealer may give you fixed insurance with the coverage you might not desire. By doing this, you risk paying more for a cover that is inappropriate for you.

9) Digital Insurance:

Digital-first insurers provide affordable Comprehensive auto insurance coverage with enticing features. They can sell policies at a lower price than the market because they incur fewer operational costs. Before buying a policy or while doing your bajaj allianz motor insurance renewal, be sure to compare rates on the websites of online insurers. ##

* Standard T&C Apply

## All savings are provided by the insurer as 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.

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!