How Car Insurance Companies Calculate Your Premium

1. How Car Insurance Companies Calculate Your Premium With years and years of hard work and persistence, you finally manage to get your hands on your dream car. The pleasure of driving down the road and making heads turn may be the most exciting part for you. However, there must be a little concern at the back of your mind about how good the car will look in a few years, as it does now. You can do very little to change certain scenarios in which there is a possibility of damage to your car, but you can definitely do your bit by getting a car insurance. It is the number 1 savior when it comes to restoring any physical or mechanical damage that may occur. If the car insurance premium is what bothers you, then we give you an insight of the factors that the insurance company looks in to in order to help you get the best possible premium for your dream machine. Value of the car: Insurance companies determine the ‘Market Value’ of the car in order to evaluate the premium for it. In order to determine

2. the market value, the car’s make and model, age, condition of the vehicle, and the resale value, and the value of all additional accessories are taken into account. Type of Insurance / Cover: Two main types of car insurance cover are prevalent in the market today, namely, Comprehensive Insurance and Third Party Insurance. Comprehensive insurance is the most expensive type of car insurance available. The reason behind this is that it is very extensive and covers injury to other people or damage to their vehicle or property in an accident as well as your own vehicle for accidental or other damages, theft and hijack, etc. While Third Party insurance on the other hand covers damage to other people and their vehicles, etc. It can be a good idea to buy your car insurance online too, as it comes out to be convenient and cheap too. Your Personal Background: Apart from the vehicle and insurance type, even your personal stats play a very important role in evaluating the premium of your car. Things like your age, gender, occupation, marital status, education background, driving history, where you live, etc. also have an important role to play in the resultant premium from your car insurance company. Security Features present in the car: If there are additional security features installed in your vehicle, then the possibility of a theft are substantially reduced, resulting in a lower premium. Know answers to frequently asked questions on car insurance policies, claims process, additional covers and premium calculation for Car Insurance - Bharti AXA GI.