25th October 2020

Know Everything about Reviewing Your Car Insurance Policy

Things to Consider When Reviewing Your Auto Insurance Policy

The Motor Vehicles Act has been updated as of 2019. This update has brought in several changes to the Act that you need to take into consideration while reviewing your car insurance. Motor owners need to know about the updates as to how the changes would affect them.

Insurances are an important part of day to day life in changing times. They are of absolute necessity when it comes to securing oneself and people around, financially. Most people buy insurance along with the purchase of their cars so that they are secured from the very beginning. It is one of the highest-grossing insurance types in the country. What one needs to know while selecting an insurance policy is that the premium which one pays is not a price that is permanently set, but plenty of variables are taken into consideration. The price of a policy can fluctuate based on these variables from time to time. One must, therefore, evaluate their existing policies every year, to know if your needs have changed, or if there are any changes in the existing policy or their car insurance premiums.

Here are some major factors to consideron when an auto insurance policy needs reassessment:

  1. Change in the geographical location

The price paid for a vehicle insurance policy is higher in populous areas. When a particular region is densely populated, there is a higher chance of the insured filing a claim due to theft or an accident. The scenario in rural areas is not quite the same. They are less in populous and are mostly residential areas, where the theft / accident rates seem much lower than in big cities. People in such hamlets might claim to be much secure and content. In case a person has moved from a city to a village, there are many aspects of the auto insurance policy which he/she might have needed in the city-based lifestyle which could be of no use now. In such situations, one must have a word with the car insurance provider to see if concessions would be available on the vehicle insurance premium calculated in consideration with a new geographical location of the car.

  1. Type of automobile

One of the most important factors that the premium is based on is the type of car. High-end luxury cars are an expensive affair in terms of maintenance and so is their premium due to a higher IDV. The ones which are traditional models, used by the family for the day to day jobs locally, and are less expensive, do not have similar requirements like a sports car. It is therefore very important to discuss your car type, model, and the year with your insurance provider, who would then be able to calculate your car insurance premium more accurately.

These factors will majorly decide as to how much premium you’d be paying. You can calculate the same beforehand on the car insurance premium calculator available on your insurer’s website. If yourresidence changes, or any factor which influences the overall cost of your vehicle, it is advisable to contact your insurance provider to have your premium revised.

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