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  • Unveiling some of the best-kept car insurance premium secrets

    Published on September 20, 2019

    For most people, vehicle insurance is like a jigsaw puzzle. They don’t quite understand why their insurance premiums increase out of the blue, nor do they know what affects their premium amounts. They either keeping paying premiums without questioning the insurance provider or change their insurance providers willy-nilly. However, it is important to remember that vehicle insurance is a billion dollar industry and every decision taken by insurance companies has some bearing. So we decided to unveil some of the best kept-secrets surrounding premiums.

    Secret # 1 – Your car’s make and model affects the insurance premium, but not its colour.

    That’s correct! Your insurance premium is determined based on the make and model of your car. Vehicle insurance companies typically follow an in-house vehicle rating system, based on which insurance premiums are calculated and determined. The older your car’s make, the higher would be the premium. The model, type and size of the car also affect the four wheeler insurance premium amount. The colour of the car, on the other hand does not affect the premium at all.

    Secret # 2 – Your premium amount reduces considerably if you install security devices.

    Your insurance premium is determined based on the “accessories” you install. If you opt to install accessories such as security cameras, airbags, accident prevention sensors and anti-theft devices in your car, your insurance premium amount can reduce significantly.  This is attributed to the fact that these security devices already do a good job of protecting your vehicle and the liability of the 4 wheeler insurance provider reduces significantly when you file a claim.

    Secret # 3 – Your insurance premiums increase with every gadget you install.

    No, we are not contradicting ourselves. We’re not talking about security gadgets but about those that you install for luxury purposes. Installing a state of the art music system, mobile television screens, GPS and rear view gadgets and so on increase the value of your car, which means that the insurance provider has to pay more for repairs, should something happen to your car. This increases your insurance premium amount. Even if you choose what you consider the best car insurance provider, you will still have to shell out a high insurance premium for installing such lavish gadgets.

    Secret # 4 – Your insurance premium increases if you are considered a bad driver

    This is another well-kept secret of the insurance industry. Insurance providers take your driving skills and your driving habits into account while offering insurance. They do a background check based on your old vehicle to verify the number of times you’ve made claims, gotten speeding tickets or been in car accidents. If you are considered a reckless driver, you could end up paying approximately 40% more in insurance premiums as opposed to say, an individual who is considered a safe driver. You could choose the best car insurance policy there is, but if you don’t practice safe driving, you can expect to pay high premiums.

    Secret # 5 – Members belonging to Road Safety Organisations benefit from low premiums.

    Being a member of automobile associations such as Automobile Association of India (AAI) or Western Indian Automobile Association (WIAA) comes with many perks. Such organisations are regarded as road safety organisations and members belonging to these organisations receive several benefits including added coverage for discounted premiums.

    Today, it is possible to get an approximate figure of the insurance premium you would be paying thanks to online tools like car insurance calculator. Just visit your insurance provider’s website, enter your policy details and find out the premium amount payable.