The cost of vehicle insurance premiums is affected by a lot of factors. Having a basic understanding of the factors can help you save on the cost of vehicle insurance at the time of purchase or renewal.
The following are the factors that affect vehicle insurance:
• Vehicle registration location: Vehicles registered in a tier 1 city tend to attract a higher amount of premium than the ones registered in tier 2 or 3 cities.
• Manufacturer and variant type: Different variants of vehicles attract different premium amounts as
The amount of coverage to be offered depends upon their value in the market.
• Safety/Anti-theft security in vehicles: If there are adequate safety systems installed in vehicles that might prevent theft, the risk decreases leading to lower cost of the premium.
• Policy type: Comprehensive vehicle insurance is a little expensive than third-party vehicle insurance as it provides extended coverage benefits for your vehicle damages. Meanwhile, third-party vehicle insurance comes with a relatively cheaper premium as it only provides basic third-party coverage benefits.
• Add-On Covers: The additional coverage you will opt for with comprehensive vehicle insurance directly impacts the amount of premium to be paid for the vehicle insurance.