Get the BEST possible deal insuring your car!

Cars are increasingly gaining threshold towards being a necessity rather than a luxury for people today. With superbly rising number of vehicles, both two and four wheelers hitting the Indian roads, the concept of auto insurance is also gaining impetus. Car insurance -- a term commonly used and applied in the West since long was not known and used widely in India for quite some time back. But now buying a vehicle and getting it insured both run hand in hand for people here too.

Any kind of insurance involves two entities -- the insurer, which is the company giving insurance cover and the insured, the vehicle owner who is taking the cover for the vehicle.

The insurer agrees to pay the insured in case of losses incurred to the insured property (vehicle in case of auto insurance) under set terms and conditions. This payment is done on the basis of a regular set of payments which the insured person makes to the insurer. This set of payments is known as insurance premium.

With a vast variety of insurance offers being placed competitively for the customer by insurance companies, it becomes difficult at times to select the right policy with the right premium and cover. There are several elements which act as decisive factors in estimating the premium that a person has to pay for her/his insured vehicle.

Some common factors which are taken into consideration while deciding insurance premium are as follows:

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1. Make and model of the vehicle

Insurance premium varies from vehicle to vehicle. If the vehicle is a high-end one like BMW, Audi and others, then it will have larger cover than a medium to low end vehicle and thus higher premium.

2. Place of registration

Place of registration has an important role to play in deciding the premium. Zones which are earthquake prone or with increased chances of terrorist attacks have higher insurance cover to vehicles than other areas.

3. Age of the driver and driving experience

Age of the driver and his driving experience adds to deciding the premium for his vehicle. Safe driving record definitely provides an edge to the driver.

4. Type of cover taken

Insurance cover and thus premium varies according to the type of cover taken too. Cover taken only for third party damage caused due to accident costs lesser premium than the one taken for both personal damage as well as third party liability.

5. Credit rating of the person concerned

Credit rating of the person applying for cover plays an important role in deciding the cost of premium. A good credit rating comes from a good track record of repayments which include payments of credit card dues, loan installments, insurance premiums in case of previous covers taken and many others.

6. Voluntary deductibles

Voluntary deductibles, if any, opted by the person taking the insurance policy would definitely add to lowering of the premium amount.