What Factors Impact Car Insurance Premiums For Sedans And SUVs?

What Factors Impact Car Insurance Premiums For Sedans And SUVs?


Navigating the realm of car insurance premiums for sedans and SUVs involves considering various factors that significantly influence the costs. From the type of vehicle chosen to the driver’s history and location of residence, these elements play a pivotal role in determining insurance rates. Understanding these factors is crucial for individuals seeking to make informed decisions and optimise their online car insurance coverage.

1. Car Choice And Model:

Selecting a new car in India involves the fuel debate and choosing between a hatchback, SUV, or sedan. The vehicle’s make, model, and engine details influence premiums, emphasising the need to compare quotes from different insurers.

2. Location Of Residence:

Residing in densely populated or Tier-1 cities raises accident risks, leading to higher insurance premiums. Additionally, areas with increased crime rates elevate the risk of theft or vandalism, further impacting insurance costs. Opting for a location with lower population density and crime rates can result in more favourable insurance rates. ##

3. Driving History

A significant determinant of insurance premiums is the driver’s history. Insurance companies prefer low-risk drivers with a clean track record, as they pose a lower accident risk. Conversely, drivers with a history of insurance claims or traffic violations are deemed high-risk, increasing premiums. Maintaining a clean driving record can greatly reduce insurance costs. ##

4. Coverage Choices

The level of coverage selected also directly influences insurance costs. Basic third-party insurance offers minimal coverage and results in lower premiums. Conversely, a Comprehensive Car Insurance Policy can provide more extensive coverage, including damages, which entails higher premiums. Claims are subject to terms and conditions set forth under the motor insurance policy. ##

5. Engine Type

The chosen vehicle’s engine type influences insurance premiums, with diesel cars generally incurring higher costs than their petrol counterparts. Higher Insured Declared Value (IDV), linked to a pricier tag, also raises premiums. Opting for a petrol or CNG vehicle can lower insurance costs than diesel options. ##

Reasons For Purchasing Car Insurance

1. Damage Coverage

Car insurance covers damages from accidents, fires, natural disasters, theft, burglaries, and riots. Filing a claim ensures that the repair costs do not financially burden the car owner. Opting for a zero depreciation (zero dep) in car insurance ensures comprehensive coverage without factoring in the depreciation of the vehicle’s value, providing maximum protection for your sedan or SUV. Claims are subject to terms and conditions set forth under the motor insurance policy. *

2. Network Garages

Insurance companies typically maintain a network of authorised garages where policyholders can avail of cashless transactions for car repairs. This ensures quality service and adds convenience to the repair process.

3. No Claim Bonus

Policyholders who make no claims under their insurance policies are eligible for a No Claim Bonus (NCB). This bonus during policy renewals encourages responsible driving and is a financial incentive. *

Various factors contribute to determining online car insurance premiums for SUVs and sedans in India. Understanding these factors empowers consumers to make informed decisions and potentially influence premium costs. You can use a car insurance premium calculator to estimate the costs of premiums to be paid. Individuals can navigate car insurance complexities by considering car choice, residence location, driving history, and coverage preferences, allowing them to optimise their coverage.

*Standard T&C Apply

##All savings are provided by the insurer as per the IRDAI-approved insurance plan.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.