Team AckoJul 22, 2021
If you have car insurance, it can sometimes feel like your money is being spent for no reason, that’s until you raise a claim for damages. If you are on a budget, finding an incredibly low priced car insurance might sound like a distant dream. Well, worry not! Your search ends here. Acko General Insurance offers car insurance policy at killer prices and the peace of mind with easy and hassle-free claims. In reality, you need a four-wheeler car policy that’s going to give you a good return on your investment.
There are several factors which impact the car insurance cost. Below are 6 factors which impact the car insurance price:
The current value of your car is otherwise known as the Insured Declared Value (IDV) determines the insurance premium you pay to the insurance company. The IDV is not constant as it changes due to the depreciation of your car due to wear and tear of parts. While a lower IDV does result in a lower premium, however, this will result in a lower claim amount. You will have to pay for the difference in case the cost to repair the damages caused to your vehicle is more than the IDV.
Car insurance policy is of two types – Third-party Liability Insurance and Comprehensive Car Insurance. While Third-party Liability insurance is the most basic and mandatory type of car insurance plan, the Comprehensive car insurance policy covers both third-party liabilities as well as own damages.
Since the Third-party car insurance policy covers only the liabilities of the third-party damages, the insurance premium or cost is much lower when compared to the Comprehensive car insurance plan as it covers both third-party and own damage. The Comprehensive car insurance policy offers greater coverage compared to the Third-party Liability cover.
The IDV is equally proportional to your car’s value which decreases each year. Hence, the age of your car will determine the premium you pay which is lower in case your car is old. Older cars are prone to damages, so car insurance companies inspect and assess your car while deciding the premium.
Also, read: How Does Car Insurance Work In India?
By including Add-ons to your basic car insurance policy will enhance the coverage; however, this does increase the premium or the insurance cost. There are several types of car insurance Add-ons, but choose those which add value to your insurance policy. Some of the common Add-ons include Zero Depreciation, NCB Protect, Engine Protection, Invoice Cover and Roadside Assistance.
By installing anti-theft devices and other security features on your car, the car insurance premium reduces significantly. This is because insurance companies prefer to do business with lower risks. The lower the risk, the lower the premium rate of your car insurance policy. By adding extra security features you can expect a low priced car insurance for your vehicle.
Are you a good driver? If you are then, your insurance company will reward you for keeping your car in good condition. This is achieved through the ‘No Claim Bonus’ (NCB) feature. This is a form of discount for not raising any claim during the policy period. This discount is used against your car insurance renewal premium and thereby reducing the car insurance cost. Hence, you can avail affordable car insurance for your vehicle.
In conclusion, car insurance cost is bound to increase in the future; however, use the above-mentioned factors to get an incredibly low priced car insurance policy at Acko.
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ACKO General Insurance Limited
2nd Floor, #36/5, Hustlehub One East, Somasandrapalya, 27th Main road, Sector 2, HSR Layout, Bengaluru, Karnataka - 560102
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