The process to purchase a car insurance policy is simple and can be completed online. However, the premium that must be paid will depend on various factors such as the car type, model, fuel type, and engine capacity. The higher the price of the vehicle, the premium that must be paid will increase.
Insurance Premium and Type of Car – Relationship
It is simple to understand the relationship between insurance premiums and the type of car. Depending on the cost of the car, the premium that must be paid will vary. The three types of cars that are currently available are mentioned below:
- Sports Utility Vehicles (SUVs)
Sports Utility Vehicles (SUVs)
When compared to sedans and hatchbacks, SUVs are costlier. Therefore, the insurance premium that must be paid for SUVs is usually more than sedans and hatchbacks. The seating space in SUVs is more when compared to other types of cars. The ground clearance and boot space capacity of SUVs are more when compared to other types of cars. Due to the safety features, comfortability, and market price, the insurance premium that is paid for SUVs is more when compared to sedans and hatchbacks.
Sedans are usually costlier than hatchbacks but cheaper than SUVs. Sedans are 5-seaters that come with a trunk that is extended. Therefore, the boot space capacity of sedans is more than hatchbacks. Sedans come with several safety and comfort features as well. The premium that must be paid for an insurance policy in the case of a sedan is higher when compared to a hatchback but lower when compared to an SUV.
Hatchbacks are usually cheaper than SUVs and sedans. The value of the car will be lesser when compared to SUVs and sedans. Like sedans, hatchbacks are also 5-seaters. Hatchbacks usually come with a trunk door and 4 doors. Most hatchbacks are priced between Rs.5 lakh and Rs.10 lakh. The insurance premium that must be paid for hatchbacks is usually lesser when compared to SUVs and sedans.
You can check the price that must be paid for a car insurance policy online before you purchase the car. It is important that you compare car insurance policies from different companies before opting for one. Apart from the car type, some of the other factors that determine the car insurance premium are model, fuel type, and engine capacity.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017