How Is The Cost Of Your Car Insurance Determined?
The terms and conditions, exclusions, and special cases sections of our insurance policies contain much information. However, we are always made aware of the premium. But most of the time, we hear a number without ever really understanding how it was calculated or what exactly went into it.
The Following Variables Affect The Cost Of Car Insurance:
The car’s IDV (Insured Declared Value), type and age, the engine’s cubic capacity,customised car insurance plan and the geographic region.
3 Elements Of The Cost Of Car Insurance
Depending on the type of coverage you opt for, your car insurance premium is calculated.
If you own a car in India, you must have a third-party liability cover. Any harm to a person or piece of property caused by your insured vehicle that results in monetary loss or a person’s passing away is covered by third-party liability (TPL). TPL, however, does not pay for any repair costs you may incur, so choosing a policy that also covers losses brought on by damage to your vehicle is always advisable. The Insurance Regulatory Authority of India (IRDAI) issues the TPL premium based on the vehicle’s capacity. #
Own Damage Cover (OD)
The OD cover is not required but is very helpful. If your car is damaged due to a natural disaster, such as an earthquake, fire, storm, etc., or an accident, it reimburses your expenses. The deal is that as the Insurance Declared Value, or IDV, increases, so does the premium. Thus, the IDV decreases as your car ages. The Indian Motor Tariff determines the percentage of IDV used to calculate the OD cover premium. *
The IDV calculation formula is: IDV equals your car’s showroom price less any accessory costs and the depreciation value determined by the IRDAI.
The following is the formula to determine the amount of the OD premium: Own Damage Premium = IDV x [Insurer-Determined Premium Rate] Added features, such as bonus coverage concessions and benefits (such as no-claims bonuses and theft concessions)
Coverage For Personal Accidents
This portion of your car insurance premium protects you against dangers beyond your vehicle, including accidents that might leave you disabled. Given that the likelihood of disability is higher than almost any other outcome, this is an essential component of being fully protected. *
Finally, there are riders. You can get a variety of protections and services from these riders, also known as car insurance online add-ons, for a reasonable price. Examples include NCB Protection, which enables you to make two claims without losing your No Claim Bonus; Road Side Assistance, which will send help if your car breaks down in the middle of the road; and Engine Protection, which guards against water logging-related damage. Each rider adds to the strength of your Bajaj Allianz car insurance policy, ensuring that you are always protected. Claims are subject to terms and conditions set forth under the car insurance policy. *
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Standard T&C Apply
Visit the official website of IRDAI for further detail
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.