By 
While it is essential to purchase a motor insurance policy, it becomes even more imperative to choose the right one. You can also pick quotes from various insurers and compare them online to be able to make a wise decision. If you browse the internet a little, you understand about renowned companies and the plans they offer. Factors such as the age of the vehicle, use of the vehicle, its ideal insured declared value (IDV), cubic capacity, and fuel type affect the premium amount.
Motive of your vehicle
You can have motor insurance for either personal or commercial purposes. If the vehicle is used for business, i.e. commercial purposes, you will have to opt for a commercial vehicle insurance plan.
Worth of your vehicle
The Insured Declared Value (IDV) is the current market value of your vehicle and so it determines the premium amount. IDV is based on the Manufacturer’s Selling Price (MSP). In case you happen to purchase an expensive car, you might have to pay a higher premium. The date of manufacturing and registration are considered as well. Also, if the spare parts of your car are expensive or rare and they result in an increase in the IDV, you will be required to pay a higher premium too.
Location
Another factor that determines the premium of your car is your location and the place your car is registered. Zones are created by insurance companies based on their vulnerability. People residing in urban areas (referred to as Zone A cities) have to pay higher premiums because cases of vandalism, theft, and accidents are more in these areas as compared to rural ones (Zone B).
Why compare car insurance quotes?
If you compare various car insurance quotes online, you can get the best car insurance premium rates. Comparing will also show you how the quotes can be varied despite the car and the geographical location being the same. Therefore, to make the right purchase, take your time and look for different policies online before finalizing one.
How to compare car insurance quotes?
Insurance buyers first tend to look at the money factor while purchasing a car insurance policy. Saving money on premiums is good but you must also consider other factors. Even if you buy the least expensive insurance policy and the insurance company does not pay the claims on time, it will be of no use.
Hence, comparing the policies offered by different insurance providers helps you look for one that fits your needs the best. Coverage offered by a third-party plan is way different than that of a comprehensive plan.
All you have to do is look for car insurance quotes online. This way, you can compare various policies on a single platform. This saves time as well as the effort needed to avail multiple quotes from insurers. The internet also makes it very easy for you to compare the inclusions and exclusions, the premium amount, as well as the terms and conditions of your policy. A car insurance calculator helps you calculate premium online so that you can avail concessions or better deals.
Comments