Are you searching for cheap car insurance? Well, you are not the only one. Read this article it will help you in your search.
India’s auto insurance market has 25 general insurance companies offering car insurance. It means you are free to pick and choose as per your needs. You are spoiled for choice with the existence of many insurance companies offering many car insurance options. But, it also makes it difficult and confusing while selecting a car insurance policy that is suitable and cheap at the same time.
5 Factors that determine Premium of Comprehensive Car Insurance Plan
You are different from the person next to you. So is your car different and hence the insurance premium for your car would also be different based on your needs.
You would not be able to find a ready to use premium chart showing you the lowest and highest premiums as there is no one size that fits all concept in the motor insurance world.
Here are 5 important factors that influence comprehensive car insurance premium:
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Car IDV
Your car’s Insured Declared Value (IDV) is the sum insured of your comprehensive car insurance policy. In simpler words, IDV = Car Makers listed Showroom Price less depreciation.
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Add-Ons
Add on covers also increase the premium amount. If you have attached too many add ons you will have to pay a higher premium but at the same time, you will also get a higher cover.
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Car's Age
The older your car gets, the higher will be the premium you pay and vice versa.
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Make, Model and Variant
Your Cars make, model and variant of your car also play an important role in determining your premium amount.
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Location
The place where your car is registered also impacts the premium. Suppose you and your friend have the same car i.e. the make, model, variant, year of manufacture, registration date and insurer are the same. You are registering your vehicle in Mumbai and your friend has registered it in Delhi, you both would be paying different amounts as premium.
Cheapest Car Insurance Company Premiums
Check out these sample premium rates of different insurers we have compiled for you. Let’s see which insurance company offers the cheapest premiums for a comprehensive car insurance plan on Maruti Suzuki Swift Dzire ZXi Variant with 1298 cc petrol engine manufactured in march 2019 and registered in Maharashtra - Tardeo on 2nd October 2019
| Insurance Company | Premium in Rs. (excluding GST) |
|---|---|
| Shriram Car Insurance | 8,392 |
| Magma HDI Car Insurance | 8,392 |
| Liberty General Insurance | 10,115 |
| Kotak General Insurance | 10,805 |
| United India Car Insurance | 11,322 |
Disclaimer: The above premium rates are based on the data available on Coverfox Portal. The IDV of the vehicle is Rs. 5,25,000/-. The previous policy has expired for more than 90 days, without any add-ons and personal accident cover. Last updated on 17-03-2021.
Is Cheap Car Insurance the Best Car Insurance for You?
Many times we learn the hard way that the cheapest is not always the best. The same rule applies in the case of car insurance. Buying car insurance at the lowest premium may not be the best for you.
You would obviously have spent lakhs of Rs. for buying a car, so just for saving a few thousand rupees don’t compromise on the cover. Here are a few factors that you should look at other than low premium while buying a car insurance plan.
- Customer Support - Insurers have a dedicated customer support team to help you. But check their availability first, some insurers customer support team is available 24 x 7, while some are available during entire working days (Monday to Friday), while others may be available only during office hours on working days.
- Incurred Claim Ratio (ICR) - ICR clearly tells you which company has settled how many claims are paid against the premium collected during the year. A company may offer you the lowest premium for the car but when the time of claim settlement comes it might not accept your claim.
- Add-ons - Check whether there are add-on covers like Zero Depreciation, Engine Protector, Return to Invoice, Roadside Assistance, etc. are available. These add-ons increase the cover of your comprehensive car insurance plan. Choose an insurer that offers you the add-ons you need.
- Easy to Buy / Renew and Claim - Find out whether the insurance company has an online presence and allows you to buy /renew a car insurance policy online easily and instantly. You can even file a claim online on the insurers portal.
Final Thoughts
A comprehensive car insurance policy protects you from financial losses. The insurer covers your car against events like an accident or natural calamities. You can make cashless claims at any network garage near you if you have a comprehensive car insurance policy.
The premiums for a comprehensive car insurance policy differ from insurer to insurer and car to car. You can use our Car Insurance Premium Calculator to find out which company offers you the cheapest car insurance. Our calculator helps you get the best insurance coverage and you can also buy/renew it instantly in minutes.
Also Read: Why The Cheapest Car Insurance May Not Be The Best?
