You must have wondered that why there is a different premium for every person when it comes to having car insurance. The reason is pretty simple. The premium amount that is charged to you is calculated on the basis of a statistical evaluation that calculates the level of risk you are exposed to. This article discusses below some of the common deciding factors of car premium amount. Your Past Driving Testimony This factor is extremely apparent. This is because your insurance policy is meant to provide protection whenever you get involved an accident. For this reason, your insurance company will analyze the probability of an accident. For example, a person who has been involved in road accidents frequently in the past few months is more likely to get indulged in a slip-up in the coming years. Your past record of your driving will contribute a lot towards it. In short, if your driving record is decent then your premium will certainly be lower. No claims bonus (NCB) in India is essential in order to reduce your car insurance premiums. Its appeal differs from company to company. But, generally the drivers can be entitled to a good discount on car insurance premiums if they keep earning NCB every year. Age, Gender, and Marital Status The insurance companies believe that age is directly proportional to the experience of the driver. So, if a person has more experience in driving then he/she is least expected to cause an accident. Sometimes the gender of a person is also considered since most statistics reveal that usually men get more involved in accidents as opposed to females. Marital status is also important. Also, the marital status may contribute to less premium amounts since married drivers are less likely to get involved in rash driving. However, bear in mind that these factors can get negated by your driving record. Your Location Accidents are unforeseen and regularly caused by factors like the place where you live. For instance, if you reside in a metropolitan area that is theft prone or thickly packed with traffic then your premium could be higher as compared to people who live in a rural area. Your Car Model If you own a car that has scored good during crash safety tests, strong chances are there that you would get a lower premium rates as compared to a driver who owns a car that scored less on the same test. Moreover, if your car is not much expensive then your premium would also be low. The Usage of Car The car insurance company always takes into the account the usage practice of your car. A person, for instance, may use the car daily many times for commuting within a thick traffic. Another person, on the other hand, can use the vehicle just for weekend drives. The premium is calculated accordingly. Engine Size of the Car The engine size of a car is calculated as its cubic capacity. The insurance premium is sometimes also influenced by the size of the engine. Different insurers use different factors for calculating premium amount, and thus it is better to compare all the policies at one platform. Always opt for a fairly priced policy that can enhance your livelihood. If a policy makes you pay very high premium then you may refrain from purchasing it. Similarly, if the premium is too low then you end up risking your financial stability just for a claim. Contact a professional and compare different quotes at GIBL before taking any major step.
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