Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr The most important factor that is considered at the time of purchasing a car insurance plan is undoubtedly the insurance premium. It varies from one individual to another and is not the same from car to car. A different model or body type brings along a different rate of car insurance premium. There are various factors that influence the premium. Here we list out some of them, so that you can get the best deal on your next car insurance plan. For many people, the main factor that is considered while purchasing a car insurance plan is the insurance premium. Insurance premium is the sum that is paid monthly by the insured, in order for them to enjoy continued coverage. And since, it is illegal to drive on Indian roads without having a valid car insurance policy, it is worth the while to find out what affects the rate of car insurance premium. Below are some elements that have a significant bearing on the assessment of car insurance premium. Vehicle Model The model of the vehicle that has to be insured plays a huge role in determining the car insurance prices. Insurers assess the premium on the ‘Insured Declared Value’ of the car, which basically means the market value of the car. Therefore, luxury cars, SUVs and big sedans attract a higher car insurance premium than what would be applicable to small cars and hatchbacks. Premiums also vary with the age of the vehicle. A new car will have higher premium as their market value is higher than used cars. The fuel type also has a say in premium pricing: diesel cars are costlier to insure than petrol cars or those powered by CNG/LPG. Online tools such as car insurance estimators are a good way of finding out the prices before buying the policy at loanable. Vehicle Location and Purpose What the vehicle is used for is also taken into consideration. For instance, if the registered vehicle is a commercial vehicle and contributes to the profits of the company, it is bound to attract a higher premium as it is a source of income. The location of the vehicle also has a significant impact on the premium rate. Areas where incidents of theft, vandalism and accidents are high merit a higher car insurance premium. Similarly, urban areas are costlier, whereas rural areas with low traffic density have a relatively lower premium amount. This is because, the chances of getting into an accident reduces significantly with low vehicular density. Safety Equipment Modern cars are safe and come equipped with an array of safety features meant to minimise risk in case of an accident. Airbags, anti-theft devices, advanced braking systems all combine to make the car less susceptible to damage and theft. Cars that are high on safety features command a discount on premiums in many car insurance companies. The only condition is that these features should be seen in the list approved by Automobile Research Association of India (ARAI). A discount of 2.5% can be had if your car meets the specific requirements. Car Modification A car is an extension of one’s personality, so it only seems appropriate that the owner would be inclined to customising it, to suit his/her taste. The modifications done, such as spoilers, side skirts, bumpers and roof rails are not covered under a standard car insurance policy. If you get these fitments installed from the dealer at the time of purchase, then the prices of these accessories will be included in the vehicle price. This has a positive effect in the form of a high Insured Declared Value for your vehicle, but the downside is that it will also lead to an increase in the premium amount. There are numerous websites that can be used for getting car insurance quotes, these give a fair idea of the prevalent market rates and also help you find the car insurance policy that suits you best.