When you own a car, insurance is a must and one needs to renew it every year before the due date.
The insurance rates may differ depending on various factors. Individuals should be aware so that they do not end up paying huge rates.
It is usually advised that one should choose the policy which provides solid insurance cover. Here are 6 Important factors that affect car insurance rates in India.
Also read: 6 Top Auto Insurance Myths Busted
1. Driving Record
There are chances that, rash driving, record of accidents, speeding or breaking traffic rules will have the impact on the premium rates.
Driving under the influence of alcohol will have higher premium rates as the risk associated is higher with the driver.
2. Age of the Driver
Age of the driver and his driving experience also count. It is said that male individual who is below the age of 25 years are more likely to cause accidents and hence the rates could be higher to such individuals.
3. Make and model of the vehicle
Insurance premium vary from vehicle to vehicle. If the vehicle is a high-end model, it will attract higher premium rates when compare to small cars.
4. Frequency of driving
The insurance premium depends on how much you drive and for what purpose. Insurance differs for vehicle used for a personal purpose or for business purpose.
5. Place of registration
Insurance companies also decide on the registration city of the vehicle. In India, it has been divided in different zonal areas for the purpose of ratings such as zone A and B.
6. Credit Worthiness
Yes, your CIBIL score also plays a vital role in deriving premium rates. Higher your credit worthiness lower can be your premium. If your have missed your few bill payments or EMI, be ready to shed more on premium rates.