Getting a car can be an exciting moment in your life as it gives you the freedom to travel wherever you want, whenever you want. You can go on road trips or visit your loved ones. You no longer have to rely on public transport or hassle with taxi or auto rickshaw drivers! Once you get a car, the next important step is to get a valid car insurance policy that will suit all your requirements. There are various insurance companies that provide car insurance at varied rates and have different coverage. So, it depends on you to undertake extensive research about the available car insurance policies and choose the one that is the best fit for you.
What keeps a car insurance policy active?
To keep your car insurance policy active, it is important that you pay the premium on time. The premium is the monetary amount that you are liable to pay to the insurance company for the risk that they undertake. The premium of the car insurance policy is dependent on various factors. Some of which are;
Age of the car
The type of car you are looking to insure has the biggest impact on the amount of premium you are liable to pay. The risk factor associated with the car affects the amount of premium. Some of the instances where the risk factor is high are when your car is old or if you have made certain modifications to the car that can be deemed risky. On the other hand, if you have taken measures to reduce the risk such as installing an anti-theft device, the premium will be low.
Size of the car
Does the size of the car affect the car insurance premium? More than the size of the car, the engine size of the car sometimes decides the insurance premium. If the car’s engine is relatively large than the body of the car, such cars have higher premium rates.
Add-ons are extra clauses that you can opt for to extend the coverage the car insurance provides. This coverage is beyond the one that is covered under the basic car insurance policy. The more add-ons you opt for the higher the premium amount will be. This is why it is recommended that you only opt for add-ons that are relevant to your situation and need. You will have to undertake adequate research to know about all the add-ons available and the coverage they provide.
As per the Motor Vehicles Act, all vehicles on Indian roads have to be covered under Third Party insurance. Comprehensive car insurance is an option that includes both own damage cover as well as third party liability cover. Car insurance might seem a stressful decision to make, but it doesn’t have to be as long as you have done the research and are sure about the insurance policy that you have chosen. To know more about car insurance, click here!