We go through the factors that impact the premiums you pay on your car insurance depending upon the type of car you own.
Published on Aug 31, 2021 04:10:00 PM
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Buying and maintaining a car is expensive. You cannot risk an accident or damage and pay out of pocket each time. If this happens, a car will become an unaffordable liability better left for the affluent. Buying an insurance policy comes with several considerations, and the premium on policy also varies depending upon the type of car you own.
The third-party car insurance is the legally required part of car insurance. If you meet with an accident, and need to compensate the victim (either third party or need treatment yourself), the insurance company, rather than the owner (that is, you), will pay the amount. The Motor Accident Claims Tribunal awards hefty compensation and, therefore, third-party insurance ensures that the victim receives this money without burdening the vehicle owner. The Insurance Regulatory and Development Authority of India (IRDAI) regulates this process. The regulatory body also declares price of the third-party cover for the vehicle. Similarly, IRDAI determines the premium of a third-party insurance policy in three price brackets, depending upon the engine size.
The own-damage cover of your policy protects your car and compensates you in case of an accident, theft, or damage due to any natural calamity. In this regard, there are many aspects that decide the price of a car insurance policy.
Getting your car insured may seem like a chore but, trust us, it is much more than a necessary expense. You will not realise the advantage of having an adequate policy unless you need it.
Every paisa invested in buying car insurance is worth it when you don’t bear all the repair and compensation costs out of pocket. A well-loved car deserves equally valuable car insurance. So, make sure to get the best policy from the best insurance company.
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