Car Insurance Dehradun

6 Things that Determine the Cost of Car Insurance
#1 Scope of Coverage
Car insurance can be of different types based on the coverage offered. You can choose to buy coverage based on your requirements. Here are the things related to coverage which can affect the cost of your car insurance policy.
• Type of Policy
Car insurance is of two types – Third-party Liability and Comprehensive car insurance. Buying a Third party insurance is mandatory by law. However, the scope of coverage is insufficient as it does not offer coverage for damages caused to the insured car i.e. ‘own damage’. Thus, the cost is low. On the other hand, a comprehensive policy offers both – third-party and own damage coverage. Thus, the cost is higher.
• Add-ons
Add-ons are additional coverage options which can be bought only with a comprehensive car insurance policy. One can customize a car insurance policy with Add-ons. Adding each Add-on to the policy increases the cost of the insurance policy.
#2 Fuel Type
There can be a difference in the price of a car insurance policy depending upon the type of fuel the car is running on. Cars using diesel and CNG fuel types can cost more compared to those running on petrol for the same model.
#3 Value of The Car
Insured Declared Value (IDV) of a car is a primary component for calculating the car insurance premium. IDV value is nothing but the approximate current market value of a car. Thus, if a car costs more, the cost of getting it insured will obviously be more.
#4 Security Systems
The purpose of car insurance is a financial security during unfortunate incidents involving the insured vehicle. However, it does not imply that a car should not be protected with security devices at all. In fact, doing so is a good practice and is appreciated by most of the insurance companies. They give a discount on car insurance premium with anti-theft devices. Just make sure your insurer offers this discount by getting in touch with them.
#5 Memberships
Certain associations enable their members to enjoy a small discount on their car insurance premiums. One such instance is being a member of the Automobile Association of India. This association is divided depending on the geographical location. For example, Western India Automobile Association, Automobile Association of Southern India, etc.
#6 Driving History
Driving history will not have an impact if you are buying car insurance for the first time. The cost of car insurance will increase for those who have a raised a car insurance claim against their policy. However, if no claims are raised in the past, the policyholder will become eligible for a discount called as No Claim Bonus (NCB). This discount is cumulative in nature and increases with each consecutive claim-free year. NCB can reach and stay up to a 50% discount on car insurance premium and drops to zero when a claim is raised.