Factors to determine your car insurance premium

1. Best Car Insurance

2. Factors to determine your car insurance premium After browsing through catalogues, visits to car showrooms, advice from friends, and a thorough check of your financials, you have finally zeroed in on the car insurance you wish to buy. While coming to the consensus on best car insurance suitable for your car you would naturally have taken into account the insurance premium you pay that will depend on the model of the car, the security and safety features installed in the vehicle, the driver's profile and whether the car is for commercial or private usage.

3. According to automobile industry experts, so far the premium was focused more on the vehicle and less on the user. The article provides you some factors that will impact the premium of your car insurance in the coming years and will help you choose the best car insurance suitable for your needs and requirements. • However, this is bound to change soon, as the premium will depend on the parameters that lower the risk. So, more user-specific factors which influence risk will be considered in future.

4. Distance Covered The number of kilometers you add up each month will be an important determinant. It is because less travelling is directly rational to lower risk. So, if a car is driven less than 5 km a day, say, to drop your kid to school and back, it will be perceived to have lower risk than a vehicle that is driven about 50 km each day, say, to and from your office. • Credit history and behavioral patterns: • Internationally, insurance companies have linked credit history and customer behaviour to premium amount. A credit score means more authentic information about the individual's track record regarding payment and defaults.

5. Top-Ups While these factors are yet to come into effect for calculating the premium, a multitude of add-on covers has been launched for creating the best car insurance policy for your car. Add-on covers bridge the gap between actual financial losses arising due to an accident and the amount covered in the base policy. However, such covers can increase the premium rates by 1-2% of the total sum insured. [Source: http://www.articles.mastercraftindia.com/Article-Site/factors-determine-your-car-insurance-premium]

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