There are plenty of reasons why car insurance cost increases. Some insurance companies in India, brokers or agents neglect to give complete information about this fact when person bought the insurance.
Below are some facts that raise car insurance premiums:
Driving Records
Insurers always consider driving record of a policyholder and this factor plays an important role in calculating vehicle insurance premium. Traffic violations and any accident in which customer is involved will be taken into account by car insurance companies in India.
When insurer go through your driving history on renewal, premium amount is likely to go up. In case insurance company considers you careless driver, then insurer can charge more for the cover which person buy.
Failure to obey road signals, traffic lights, speeding comes under minor violation category whereas racing or driving under influence of drug or alcohol are considered as major violations.
Credit Score
There are some car insurance agencies who consider customers’ credit ratings to estimate premium charges. In other words, low credit ratings generally cause higher motor insurance rates. Auto drivers who have low credit ratings because of missed mortgage or credit card payments are considered as less reliable clients by car insurance agencies.
Age
Aging is also an inevitable excuse why motor insurance policyholders need to pay more. The premium rate for older drivers will be higher as it is also based on auto owner’s age because older people may have difficulties to hear, see and react properly while traveling.
Due to physical inabilities, insured person’s skill in driving is probably not at its best. In simple words, car insurance cost will go up with your age.
Considering these facts will surely reduce premium amounts, but getting car insurance quotes online from different insurers also saves some more bucks on premiums.
Now that we have read about various factors that might lead to increase in Car Insurance Rates; view, compare and buy Car Insurance plans online from the best Car Insurance companies in India at Policyboss.com.
