New Delhi, June 28: Car insurance in India is one of the most discussed topics. It is mainly because of the high premiums and legal issues. Most people do not even know what is covered in four-wheeler insurance. People have one perspective that, in case of damage, their financial loss will be covered by the insurance companies.

But it is not just about financial loss. The first thing that people must know is which car insurance to buy. Depending on the Indian conditions, there are lots of factors that must be considered. In this article, you will understand those factors in detail. Does Your Car Insurance Provide Coverage for Natural Disaster?

1. The Engine Capacity of The Car

Indian cars have a different engine capacity than foreign cars. It is because of the terrain and weather conditions. The capacity of the car plays a crucial role in deciding the premium amount of your insurance. Engine capacity is in cc hence, the higher the cc, the higher the price. A Complete Guide to Purchasing Car Insurance Online.

2. Time Value of The Car

Time value is simply the historic cost of your car. For example, if you purchased the car ten years back, then the price computation will be done based on that. But with time, the salvage value of the car keeps on depreciating. It means the premium of an old car will be less as compared to a new car.

3. Any Cost Add-Ons On The Car

If you have installed a new musical system in your car, that most Indians intend to do after purchase, then the premium of your car will also increase. It directly entails the fact, that if you have installed any extra feature in your car, then the insurance premium amount also goes up.

4. The Insured Value of The Car

The insured value of your car means the current price of the car in the market. When the insurance person comes to evaluate the car, he will check the market price of the car. Based on that price, he will compute the value of the premium. The market price also reduces with time. Moreover, the depreciation cost is also reduced from this market value, making it even lesser.

5. Frequency of The Claims

Did you know that people who do not claim car insurance at any time during the year get extra discounts? It is not given by every insurance company. But some of them provide such discounts. Hence, if you are in India and do not claim insurance annually, then you will get a discount on your premium amount.


All the factors given above play a crucial role in determining the premium of the insurance. Higher the premium, the better coverage you will get. But some companies offer equal coverage with less premiums too. Once you know about these factors, you can use them to determine the premium cost on your own, and decide which insurance is most suitable for you. You can also advise your friends and relatives about the premium that will best suit them.

(Disclaimer: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)

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