With the increase in population in India the demand of everything has increased to the peak. Being a developing country, the status of the people living in here has increased which means the use of vehicles have also increased be it cars, motor cycles, trucks which are used commercially or professionally.
Types of insurance
- Private car insurance: It involves getting the new cars insured against the risks and the amount of premium is decided based on the value of the car.
- Two wheeler insurance:The insurance is to cover the drivers against any damage. The amount of premium depends on the current showroom price of the vehicle multiplied by the depreciation rate fixed.
- Commercial Vehicles:It is to protect the vehicles which are used for purposes other than the commercial one. It includes trucks, HMV etc.
Calculation of insurance premiums
The insurance premiums which need to be borne by the insured can be fixed by the government or the same may be decided by the insurance companies keeping in mind the laws and regulations framed. Various factors can affect the calculation of premium i.e. the amount of coverage expected by the owner of the vehicle, the characteristic of driver or the usage of the vehicle.
Increase in competition
With the emergence of the vehicles the demand for insuring them has also increased, which has led to various entrants in the insurance industry and the availability of the insurance policy at the cheap car insurance rates just to cut the competition and gain as much business as possible. The companies are TATA AIG Insurance companies, Bharti AXA insurance, HDFC Egro Auto Insurance or any other government insurance companies which are available in the market.
The companies even give the policies at heavy discounts, which is another way to lure the customers and gather as much business as possible. The customers should be well versed of the fact that the customers are the kings of the market and the company will do anything to maintain their customers.
Customers to be extra vigilant
While selecting the various options available in the market, customer should analyse the policies offered, the coverage granted and the free extras that are being provided along with the policy.
I know, that the most interesting factor for the customer is cheap car insurance rates, however this is not always the best option to choose. As one should always keep in mind that the customer may be fooled by this only as this may even involve less insurance coverage which may turn out to be useless to the customers. Hence making a wise choice is important.
Ways to choose the cheapest and the best policy
- Look around for various options that are available online
- Choose the right insurance coverage
- Maintain a good driving history to get the insurance policies
- Pay your premiums regularly on time.
- Get all the vehicles insured with the same company, to get the maximum benefit.
Get the driver training done.