Factors That Impact Auto Insurance Rates

factor that impact auto insurance rate

Buyers must know the secret of how insurance companies in India decide auto insurance rates before buying a policy.

Below are some of the factors which affect your auto insurance rates:


Less experienced and young drivers have higher auto insurance rates.


As compared to females, males have to pay more insurance premiums.


It is the amount which policyholders pay from their pocket in case they involved in an accident. If insurance deductible is high, then insurance bill is low.


Those who are living in high-crime locations should pay higher than those people who are staying in low-crime locations.

Moving Violations

Remember that speeding and any other moving violations have affected your insurance bill negatively. Obey the law sincerely because it helps to keep insurance rates low.


Accident-prone drivers need to pay more, so those who want to keep their premium low should keep their number of claims low as well.

Driving Habits

Insurance companies in India also consider the number of miles which insured drive, whether or not he use his covered vehicle for work as well as distance between home and work.

Vehicle Choice

Sports cars are more expensive to cover than sedans. Customers can save more money on car insurance premium if they search the insurance cost before buying a new vehicle.

Theft Deterrent Systems

If your car is installed with an alarm system, then you will pay less to cover your vehicle.

Safety Devices

Anti-lock brakes and airbags keep driver and co-passengers safe. It means that these devices work in favor of auto owner and keep insurance bill low.

Accident Prevention Training

Some insurance companies in India provide better deals in case policyholders complete driving course with good grades.

Payment Plan

Some insurers give special offers based on payment plan. Like, paying entire bills at once, rather than installments may lead to better deal.

Multiple Policies

In case, insured owns more than one vehicle or hold renter’s insurance, then ask your insurer to give some better rates based on the number of policies which he has with them.

 Motor Insurance