The Pros And Cons Of Comparing Auto Insurance Rates By Vehicle Make And Model!

The Pros And Cons Of Comparing Auto Insurance Rates By Vehicle Make And Model: As a four-wheeler owner, you may have heard about auto insurance. Right? You are charged a specific amount for purchasing a policy. And there are a lot of determinants behind that amount.

One is the make and model of the vehicle. Are you comparing these to choose the right plan? If yes, read this article first because I will describe the pros and cons of comparing auto insurance rates by vehicle make and model. After reading them, you’ll learn whether you are doing the right thing by comparing quotes considering these things or not. 

Apart from this, I’ll also elaborate 10 other factors that are considered before determining the policy quotes. Let’s start – 

What is car insurance? 

It is a contract between the vehicle owner and the insurance company in which the company promises to provide financial assistance to the holder as per the deal. There are mainly three types of auto insurance – 

Third-party Insurance 

This type is mandatory to purchase in India. In this, financial assistance of 7.5 lakhs is offered for the loss caused to third-party. 

Standalone own damage

In this, financial losses of the insured vehicles are covered. It has nothing to do with third-party damage. But if you purchase third-party damage insurance with an own standalone damage, you can avail the benefits of both. 

Comprehensive Car Insurance

It covers both third-party and own damages. 

What are the factors that affect auto insurance rates?

Here are some determinants that contribute to the rates – 

Geographic Location 

The place you live highly impacts your premium plans. If you live in a low-traffic area, your rates will be lower compared to people living in big cities where roads are busy throughout the day. 

Make, model and Variant

The premium cost for a luxurious vehicle is generally higher than others. Why? Because of its basic composition like type, model, make, etc. 

Cover

Having third-party coverage is essential in India. But there are two more types of car insurance. And if you choose any one of them that will cost you higher. 

Engine Type

The vehicles that run on diesel cost higher insurance rates than those that run on petrol or CNG. 

Customized plan

A customized insurance policy is one that fulfills all your demands. Customized plans generally cost more than normal ones because they contain everything you wish. 

Driving record

It won’t affect your rates if you are buying a policy for the first time. But it will undoubtedly influence the amount of those who have already raised an insurance claim against their policy.

Although, if you had insurance previously but haven’t claimed it, you are also eligible for NCB. 

Age 

Drivers are categorized into high-risk and low-risk. These categories are classified based on driving habits and the age of drivers. People between 25-50 years of age are considered low risk, whereas below 25 and above 50 are considered high risk. 

⏩ High risks costs are higher in comparison to low risks. 

Safety features

If your vehicle has safety features like an efficient car lock or anti-theft system installed, you can apply for insurance discounts. 

Coverage required

The insurance policy can cost higher or lower depending on the coverage amount. 

Marital status

 It plays a vital role in insurance premiums. If you are married, you will be considered a low-risk driver, and that’s why you’ll be charged less. 

These are some of the determinants; there are many more. Considering all of them, your insurance cost is determined. 

How can you compare quotes for different make and models?

First, you must collect quotes for the makes and models you want to compare. 

There are different ways to get quotes – online, in person, and over call. Here’re the steps to get quotes online – 

• Head on to the insurer’s official website. 
• Search for the option to request the quote. 
• Enter whichever details are asked.
• Choose the coverage.
• After this, you’ll get the quote. 

Over call – Find the insurer’s contact details > call them > ask for the quotes. 

In-person – in this method, you have to go to the agent to learn about the policy’s price. 

Once you get the quotes, compare them. 

What are the pros and cons of comparing auto insurance rates by vehicle make and model? 

Well, there are many advantages and disadvantages of comparing – 

Pros

• Find the best deal

If you compare different policies, you can find the best deal offered to different make and model vehicles. 

• Cost-effective option

Different insurers provide different policies at different prices. So when you compare each one of them, you can find a cost-effective plan. 

Cons

• Different

Makes and models play an essential role in determining the insurance cost. So different makes and models of vehicles may have different insurance quotes, ultimately making it an unfair criterion to find the best policy for you. 

Some makes and models can cost higher than others. So comparing one with another won’t even help you choose the right plan. 

• Eligibility

Some makes and models are not eligible for discounts, ultimately making your comparison difficult. 

Summing Up…

A quote is the estimated amount you will require to pay to purchase a particular insurance policy. And various factors play an essential role in determining this cost, including model and make.

I have mentioned the pros and cons of comparing auto insurance rates by vehicle make and model; I hope you have understood this too. In the end, I would only say to consider everything before making any decision. 

Frequently Asked Questions