Own a Hatchback? Know the Minimum Price of Getting It Insured

Hatchbacks are fairly low-priced and versatile cars, ideal for those traveling alone, and also ideal for a family. They are very popular cars in India and are also quite reasonably priced. As per the regulations you need to pay the price of third-party car insurance, and that personal accident cover is obligatory. These things will increase the overall cost of the premium but it is prudent to be aware of all the factors influencing the insurance price and to know of their impact.

Factors Affecting The Cost Of Insuring A Hatchback

Several factors can affect the hatchback insurance price, some of which are mentioned below:

• Types Of Car Insurance Policy

Car insurance policies can be of two types – comprehensive insurance and third-party insurance. The differentiation between these two lies in the coverage provided. A third-party policy offers coverage for accidents with the involved third party. And as the name suggests, the latter offers comprehensive coverage for third-party, damages to the insured car and Add-on coverages.

• No Claim Bonus (NCB)

It is the discount provided on the renewal of car insurance for driving safely during the earlier policy period. NCB is increasing in nature and enhances with each successive claim-free year. You can get up to fifty percent discount on the policy premium if no claims are raised in five consecutive years.

• Ex-showroom Price and IDV

This price has the direct effect on car insurance policy. IDV i.e. Insured Declared Value is counted based on the ex-showroom cost. The IDV is 95% of the ex-showroom cost for a one-year-old car.

• Deductibles

A deductible is an amount one requires to pay during claim settlement. Two types of deductibles are there– Compulsory and Voluntary. The compulsory one has to be paid during claim. But, the sum of Voluntary can be set by you. This has an influence on the premium as you have promised to pay a part of the claim amount beforehand.

• Anti-theft Devices

Setting up an anti-theft device may decrease the policy cost to some extent. Insurance companies realize the fact that you take an idea to save your car against theft and thus think about offering a discount.

• Add-ons

Add-ons are additional coverage options offered with a comprehensive car insurance policy. The more add-ons one buys, the more will be the cost of their car insurance policy.

Conclusion

By keeping the above-mentioned variables in mind it is possible to make a knowledgeable decision about the premium that you will pay for your car. While it may be expensive, a carefully considered insurance policy will only save you money in due course. The money you pay for the insurance of your hatchback is way less compared to the amount you will have to pay in case of an untoward event. Hence, secure yourself and your car with insurance not only as it is compulsory by law but to be ready in case of theft, accidents, etc.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.