What Factors Influence Car Insurance Premiums for SUVs and Sedans?

Read the article and learn what are the factors that influence car insurance premiums for SUVs and Sedan car types.

Factors that influence car insurance premiums for SUV and Sedan Car Types

What Factors Influence Car Insurance Premiums for SUVs and Sedans?

Insuring your car is mandatory no matter the type of car you drive. Be it a sedan or an SUV, car insurance is compulsory under the Motor Vehicles Act, 1988. While both these car types have their unique benefits, you being the final owner can decide on the right type of car to pick depending on your comfort, style, and budget. But when it comes to buying insurance for the sedan or SUV car type, you need to be aware of the factors that influence the premium for insuring the same. Remember, the higher the price of the car, the higher is the premium.

Below given are a few factors that influence the premium for your car insurance policy

Type of Car Model

The type of car model i.e. the sedan or SUV that you choose will have an impact on the premium you would have to pay to get insurance coverage. Opting for a compact and economical model like an SUV will cost you less premium, whereas, purchasing a luxurious sedan model will cost you a high premium. The IDV of a Sedan car will be higher than that of an SUV, which directly influences the premium.

Production Year/Age Of The Car

At the time of calculation of the motor insurance premium, the vehicle’s age is taken into consideration. The year of your car gives information about its age. The wear and tear of the vehicle and its depreciation increase as the vehicle ages, thus reducing the market value of the car. Owing to less market value, the insurance cost of old cars will be less. On the other hand, the insurance premium for new cars will be higher as they will have lesser wear and tear and a high market value.

Engine Type

Petrol cars are less expensive than diesel, and hence, the insurance premium for petrol cars is lesser than that of diesel. The addition of a CNG or LPG kit to the car also leads to an increase in the premium.

Engine Capacity

The engine capacity of the vehicle denoted in cubic capacity (cc) has a high impact on the car insurance premium rate. The higher the cc, the higher will be the premium and vice versa. This is because a vehicle having high cubic capacity produces a high output which makes it more vulnerable to accidents, thus resulting in a higher premium.

Location Of The Car

The location in which the vehicle is registered has an impact on the premium you have to pay. Each location in India carries a certain type of risk depending on the number of vehicles registered and accidents taking place in the same. The whole of India is divided into two zones i.e. zone A and Zone B. Zone A includes metro cities and Zone B includes the rest of India. The premium for car insurance in Zone A is higher since traffic and accident casualties are higher in the same, thereby increasing the risk of damages caused to the car.

Type Of Insurance Coverage

The premium for insuring your sedan or SUV vehicle depends on the type of insurance cover that you choose. Opting for third-party insurance is more affordable than comprehensive insurance. Third-party insurance provides coverage only for the injuries, death, or disability caused to the third person or property.

Whereas, comprehensive insurance provides coverage for damages caused to your car as well as to a third party. With comprehensive insurance plans offering wider coverage, the premium for this type of policy is higher as compared to third-party insurance. Moreover, you can avail of additional protection with comprehensive coverage by adding riders by paying an extra premium. For new cars, opting for comprehensive coverage is an ideal choice.

Modifications Made To The Car

The car insurance premium for your SUV or Sedan car is also influenced by the modifications you make to it. Modifications made to increase car performance or to enhance its appearance, increases the value of the car, thus leading to an increase in its premium.

Installation Of An Anti-Theft Device

Installing any anti-theft device in the car which enhances its security and lessens the chances of theft leads to a decrease in premium.

Whether you buy an SUV or a Sedan, the premium for car insurance will be influenced by the above-given factors. Thus, before selecting the car, check on the premium too to get an estimation of the overall amount you would have to spend at the time of car purchase.

Also Read: Different Types of Motor Insurance Policies in India

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