Regular Payment of Car Insurance Premium Fetches Great Conveniences

As there are many speculations on the car insurance premium rates, according to the industry experts, a good driver may not get affected by the rise as the own vehicle damage premium depends on various other variables. Car prices are increasing with growing economy and the same is happening with the cost of car repair making the car insurance valuable. Usually, we all take good care of our cars but car insurance is binding by law and every car owner should be well versed with the factors of car insurance premium.

In the exposure draft of Insurance Regulatory and Development Authority had proposed at least a 60 percent raise in the car insurance premium in third party premium for vehicles. As per the industry experts in the car insurance segment, the raise in the car insurance premium is not sufficient to stanch the losses in the third party motor insurance segment. Even though insurance for own vehicle damage is profitable, there will be hike in car insurance premium by around 15 percent as well to counterbalance the losses in the third party assortment.

Car insurance in India has two constituents- one covering third party damage in terms of property and the other covering damage of the own vehicle. The third party coverage is compulsory for the commercial and personal vehicles and the car insurance premium in this segment is governed by Insurance Regulatory and Development Authority. Nonetheless, insurance for one’s own vehicle is not mandatory. There was a stiff retaliation from customers and after getting feedback from various stakeholders, the Insurance Regulatory and Development Authority diluted the hike to 20 percent of all vehicles. Though the hike of 20 percent wasn’t sufficient considering the number of claims that are being reported every year, so cutting rates of the third party cover might be the only superlative solution to the issue.

Summary: Car insurance is set to make an impressive rise this year, with the regulators increasing the car insurance premium by considerable percent and insurers also planning to bring their own rates for incisive policies.

Transfer the Car insurance Premiums the Right Way

When you sell your old car and purchase a new one, you can get your car insurance transferred. Car insurance premiums have to be paid for both new and old cars. For a new car, car insurance premium depends on the showroom price fixed on the car but if you purchase a second hand car, car insurance premium is calculated on the basis of Insured Declared Value (IDV). IDV is the amortized value of the car by the insurer and the policyholder. It is very important that you compare the car insurance premiums before transferring the insurance, especially with the option of getting your car insurance premium transferred. The IDV of the car reduces as the age of the car increases.

Summary: Transfer of car insurance premium needs a lot of documentation to be done. Hence, it becomes essential to keep all your documents safe and handy.

Car Insurance Premium Needs to be Regularly Paid

Car prices are increasing with growing economy and the same is happening with the cost of car repair making the car insurance valuable. Usually, we all take good care of our cars but car insurance is binding by law and every car owner should be well versed with the factors of car insurance premium. Car insurance is set to make an impressive rise this year, with the regulators increasing the car insurance premium by considerable percent and insurers also planning to bring their own rates for incisive policies.

In the exposure draft of Insurance Regulatory and Development Authority had proposed at least a 60 percent raise in the car insurance premium in third party premium for vehicles. As per the industry experts in the car insurance segment, the 20 percent raise in the car insurance premium is not sufficient to stanch the losses in the third party motor insurance segment. Even though insurance for own vehicle damage is profitable, there will be hike in car insurance premium by around 15 percent as well to counterbalance the losses in the third party assortment.

Car insurance in India has two constituents- one covering third party damage in terms of property and the other covering damage of the own vehicle. The third party coverage is compulsory for the commercial and personal vehicles and the car insurance premium in this segment is governed by Insurance Regulatory and Development Authority. Nonetheless, insurance for one’s own vehicle is not mandatory.

There was a stiff retaliation from customers and after getting feedback from various stakeholders, the Insurance Regulatory and Development Authority diluted the hike to 20 percent of all vehicles. Though the hike of 20 percent wasn’t sufficient considering the number of claims that are being reported every year, so cutting rates of the third party cover might be the only superlative solution to the issue.

Summary: As there are many speculations on the car insurance premium rates, according to the industry experts, a good driver may not get affected by the rise as the own vehicle damage premium depends on various other variables.