Factors That Affect Vehicle Insurance | RenewBuy | Renewbuy

Factors That Affect Vehicle Insurance | RenewBuy

There are lot of factors that affect your vehicle insurance. Let’s have a look at some of these factors that people are often unaware about:

Age of your vehicle:

The car insurance company estimates the worth of your vehicle at the time of insurance. This is called Insurance Declared Value or IDV.  The IDV of a new vehicle is more than an old one. This is because the old vehicle experiences wear and tear over the years. Your insurance coverage is based on this IDV; in other words, insurance cover depends on the age of your car at the time of insurance.

Your car model:

Insurance premium of your vehicle may change on the basis of your vehicle make and model.

The place you live:

Your place of residence also affects the insurance of your vehicle. For example, if you reside in a densely populated area with high traffic, your premium may be more. On the other hand, another person who lives in a peaceful neighbourhood with less traffic may pay lower premium.

India has been divided in Zone A and Zone B when it comes to insurance. Zone A includes cities have higher insurance rates and these include Delhi, Mumbai, Pune, Kolkata, Chennai, Ahmedabad, Bangalore and Hyderabad. The rest of India is Zone B.

Additional covers:

Your insurance premium will be higher in case you choose additional covers like Engine Protector, Roadside Assistance, Lost Key Replacement or Consumables.

Claim history:

In case of a claim in the previous year, you will lose out on NCB (No Claim Bonus) resulting in higher insurance premium on renewal.

While it may not be in your hand to control all these factors, but you can definitely get the best insurance for your vehicle. All you need to do is compare vehicle insurance online before buying an insurance policy for your vehicle.