Paul Petersen 
There is a general notion about motor insurance policy being an added expense. While most vehicle owners may stick by it, but only change their opinions after claiming damages. The real importance of a vehicle insurance policy is realised in times of need. Thus, the regulations make it mandatory for every vehicle to have an insurance policy.
For car owners, it is no different. When you buy a car with your hard-earned money, would let it be uninsured? While most car owners may opt for a base policy to comply with the regulations, here are the factors that you should consider when buying car insurance online.They play a crucial role in influencing the premiums –
Insured Declared Value (IDV)
The value of your car is one of the key factors in determining the premium for your car insurance policy. Insured declared value or IDV is the current value of your car. The IDV is affected by the depreciation of your car. Comprehensive four wheeler insurancepolicies have the option to declare the IDV for your car within a particular range. Declaring a lower IDV will impact the premium. However, the downside is a lower amount at the time of claim. On the contrary, if you report a higher IDV, it will increase the premiums.
Type of insurance policy
The type of insurance policy greatly influences the premiums. Car insurance policies are of two kinds – liability-only and comprehensive plans. A liability-only or third-party policy is the minimum requirement as per regulations. This policy covers the damages and injuries to other persons while a comprehensive plan offers broader coverage by including own damages and injuries. So whether you buy comprehensive or third party car insurance online, remember the type of policy will have a direct impact on your premium amount.
The age of your car
Age is another factor linked with the IDV. As your car’s age increases, the depreciation also increases. Thus, the age of your vehicle determines the premiums. Since older cars are more prone to damages, the insurance companies may inspect and assess your vehicle when deciding the premium.
Additional coverage
Additional coverage can be opted in the form of add-on covers. These add-ons can be purchased when you buy comprehensive insurance policies. Add-ons help you to expand the scope of your policy coverage at a nominal price. Some popular add-ons are zero depreciation, NCB protect, engine protection, return to invoice cover and roadside assistance.
Claim history
Your claim history will determine the premiums at the time of car insurance renewal. If you are someone who drives with all safety and precaution, you surely will be rewarded in the form of no claim bonus (NCB). NCB is a form of concession in your premiums at renewal date. Moreover, not claiming policy for consecutive years will help keep the premiums in check with the NCB facility. Evaluate your premiums with the car insurance premium calculator online at any time.
Finally, the insurance cost will increase at some point or other. Make sure you take precaution while driving, which eventually keeps you safe while keeping the premiums in check. Drive safe, stay insured!
