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Car insurance cost depends on your driving behaviour

When renewing car insurance, the insurance providers emphasise your driving behaviour and consider your past claim records. Suppose there are frequent insurance claim requests on your claim history. It implies that the vehicle owner has poor driving behaviour and is likely to claim damages in the future too. In that case, the insurance provider may ask for a higher premium.

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Car insurance cost depends on the vehicle make and model
The car insurance premium depends broadly on the type of car you buy. And it’s pretty straightforward. Expensive cars have higher maintenance and repair costs; therefore, the insurance premium for such vehicles is relatively higher. In simpler words, cheaper car models may come with lower insurance premiums. Bear in mind that insurance for diesel cars may cost more than their petrol counterparts.

Car insurance cost depends on your car’s age
Buying comprehensive car insurance for a brand-new car may cost higher than an old model. However, it depends on the insurance provider’s policy. Compared to new cars, old vehicles cost less to repair, but they are more susceptible to damage because of wear and tear.

Why do I need car insurance?
According to the Motor Vehicles Act, every motor vehicle plying on Indian roads must have a third-party motor insurance policy. Driving any car – old or new – without a valid car insurance plan is illegal and punishable by law. Apart from the legal obligation, there are other vital reasons to procure car insurance.

Coverage against risks: A comprehensive car insurance policy for used cars acts in the same way it does for new cars. When you buy a second-hand car, you should get it insured to protect it from all sorts of risks and adversities.

Road accidents: Should a car ever meet with a road accident; car insurance covers damages to the vehicle and death/permanent disablement of the owner-driver.

Natural calamities: A comprehensive car insurance policy will cover any damage caused to your car by natural disasters like earthquake, storm, flood, volcanic eruptions etc.

Third-party liabilities: If your car collides or causes damage to a third-party due to negligent driving, you are required to pay for the damages out of your pocket unless you have a valid third-party car insurance policy.

Security against car theft: If you happen to lose your car or if someone steals it, you can claim cover under your car insurance policy.

So, what happens to my second-hand car’s insurance?
Suppose you have bought a used car with a valid car insurance policy. In that case, you need to transfer the insurance policy in your name when you transfer the used car’s ownership. Some people transfer the policy in their names while some opt for a new car insurance policy altogether.

How do I buy car insurance for a used car?
The process of renewing car insurance or buying new car insurance online is pretty straightforward. First, you need to read about the policy and learn its inclusions/exclusions.