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Own a Hatchback? Know the Minimum Price of Getting It Insured

Team AckoJun 11, 2021

Hatchbacks are compact cars suitable for nuclear families or for people who travel alone. The maximum seating capacity of hatchback cars is four people. Hatchbacks fulfill the minimum requirements of a car and are quite inexpensive to purchase. Some low-end models like the TATA Nano cost approximately Rs. 1.5 lakh.

Some hatchbacks like Maruti Suzuki Baleno or Hyundai Elite i20 begin at Rs. 6.5 lakh. This difference in price is due to the presence or absence of certain features offered. For example – the number of safety features, comfort, inbuilt infotainment systems, etc. Depending upon the ex-showroom price of the car and included features, the cost of insuring these hatchbacks also changes.

Factors affecting the cost of insuring a Hatchback:

Type of Car insurance Policy-

Car insurance policies can be of two types – Third party insurance and Comprehensive insurance. The difference between these two lies in the coverage offered. A third-party policy provides coverage for mishaps with the involved third party. And as the name suggests, the latter provides a comprehensive coverage for third-party, damages to the insured car and Add-on coverages.

Ex-showroom Price and IDV-

This price has the direct effect on car insurance premium. IDV i.e. Insured Declared Value is calculated based on the ex-showroom price. The IDV is 95% of the Ex-showroom price for a one-year-old car.

NCB-

NCB is the abbreviation of No Claim Bonus. It is the discount offered on car insurance renewal for driving safely during the previous policy period. NCB is cumulative in nature and increases with each consecutive claim-free year. You can get up to 50% discount on the policy premium if no claims are raised in 5 consecutive years.

Deductibles

A deductible is an amount one needs to pay at the time of claim settlement. There are two types of deductibles – Compulsory and Voluntary. The compulsory deductible has to be paid at the time of claim. However, the amount of Voluntary deductible can be set by you. This has an impact on the premium as you have promised to pay a part of the claim amount in advance.

Add-ons

Add-ons are additional coverage options offered with a comprehensive car insurance policy. The more number of Car Insurance Add-ons one buys, the more will be the cost of their car insurance policy.

Anti-theft devices

Installing an anti-theft device on your hatchback might decrease the cost of a policy to some extent. Insurance companies appreciate the fact that you take an initiative to secure your car against theft and thus consider offering a discount.

Also, read: Vehicle Scrappage Policy in India.

Maruti Swift Rs. 12,000 to 22,000
Maruti Suzuki Baleno Rs. 15,000 to 20,000
Tata Tiago Rs. 10,000 to 15,000
Hyundai Elite i20 Rs. 20,000 to 25,000
Maruti Suzuki Celerio Rs. 12,000 to 15,000

Cost of Insuring a Hatchback in India

Based on the above factors, one can gauge the cost of insuring a hatchback to be between Rs. 10,000 to 25,000. This again depends on the factors that affect your car insurance premium. However, the money you pay to get your hatchback insured is way less compared to the amount you would have to pay in case of an unfortunate event. Thus, secure yourself and your car with insurance not only because it is mandatory by law but to be prepared in case of accidents, theft, etc.

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