Accidents are frequently caused by human error. This aspect does not only come from us, but also from other people, which is understandable.
On the streets, other people’s carelessness can be harmful to us. Even if someone has been driving safely, he or she may become a victim of reckless driving.
Increased safety can lessen the danger of injury and death, but vehicle damage, whether slight or serious, is almost always unavoidable. This is why our vehicles, in this case cars, require insurance. Furthermore, even if the damage is merely a scratch on the car, it still needs insurance.
Types of Car Insurance Price List in India:
The car insurance price calculator has two components namely Third party (TP) premium and the Own Damage (OD) premium. While the Third party premium rates are fixed by the IRDA, the own damage premium rates are fixed by the insurance companies. The third party premium rates are subject to change each year depending on the claim amount settled and other factors that are taken into consideration by the IRDA. The car insurance price list contains both the third party premium and the own damage premium or 1st party premium of your car.
The car insurance price list in India is subject to change each year depending on the third party premium as well as the own damage premium. Even though the 1st party premium is constant there might be changes in the third party premium which changes the overall price list of the car insurance premium.
1.) Third Party Car Insurance Price List
Third party car insurance price calculator comparison. The third party rates of car insurance price are fixed by the Insurance Regulatory and Development Authority of India based on the Gross Written Premium collected and the Claims settled for that particular year and the increase of third party premium rates are subject to the final decision taken by the IRDA.
The third party price list for the year 2020-21 is proposed to be changed and the new price list of third party car insurance is as below:
|Private Cars||Existing Rates FY 2019-20||Proposed Rates
|Not exceeding 1000cc||2,072||2,182|
|Exceeding 1000cc but not exceeding 1500cc||3,221||3,383|
It can be observed from the above table that the proposed increase in the third party price list for car insurance premium is not more than 5% of the existing premium rates. The 5% change in the proposed third party premium is due to the increase in the claim settlement ratio. The claims in case of third party accidents are taken to the honorable court where the court awards the claim amount depending on the earning capacity of the individual, age of the individual, etc. The insurance companies are bound to pay the claim amount awarded by the honorable courts and hence the major portion of the premium collected by the insurance companies ends up in the third party claim settlement.
2.) Own Damage Car Insurance Price List
As discussed above the other component used in the premium calculation of car insurance price is the own damage premium. The own damage premium is determined by the insurance companies and differs from one company to the other. The own damage premium in car insurance rates is calculated on the basis of Insured Declared Value, Zone of operation, and the cubic capacity of the car.
The own damage premium price list in car insurance is determined by the below formula which is mentioned in the Indian Motor Tariff:
|Age of the Car||Zone B||Zone A|
|Not exceeding 1000cc||Exceeding 1000cc and not exceeding 1500cc||Exceeding 1500cc||Not exceeding 1000cc||Exceeding 1000cc and not exceeding 1500cc||Exceeding 1500cc|
|Not exceeding 5 years||3.039% On IDV||3.191% on IDV||3.343% On IDV||3.127% On IDV||3.283% On IDV||3.440% On IDV|
|Exceeding 5 years but not exceeding 10 years||3.191% ON IDV||3.351%ON IDV||3.510% ON IDV||3.283% ON IDV||3.447% ON IDV||3.612% ON IDV|
|Exceeding 10 years||3.267% ON IDV||3.430% ON IDV||3.594% ON IDV||3.362% ON IDV||3.529% ON IDV||3.698% ON IDV|
From the above table, the own damage premium can be calculated. Insurance companies are bound to operate with these rates and are not allowed to charge anywhere more than these rates. Almost all the insurance companies charge only half of these rates to match the competition in the Indian market.
Car Insurance Price Calculator:
Car insurance is a complex topic and many people are put off by the high price. The truth is that car insurance prices vary depending on what type of coverage you choose.
An insurance company will calculate your premium based on your age, how old the car is, where you live, what type of coverage you want (e.g., third party or own damage), and whether or not you have had an accident in the last 5 years. It is important to know what factors affect auto insurance rates. These rates will differ depending on the car model, the company, and the location. A car insurance price list can be considered as a tool that helps people understand what coverage is needed and how much it will cost them. This would help people to purchase the right amount of coverage and have a better understanding of what they are paying for. Car Insurance Price List: Third Party – Own Damage
|Coverage||Amount (in Rs)|
|Third party||5 lakh|
|Own damage for death and disability up to 1 lakh||3 lakh|
|Third party fire and theft||10 lakh|
Premium Price List for Third-Party Car Insurance:
The IRDA.gov.in, in June 2019, published the latest third-party car insurance policy rates for 2019-2020. The rates are as follows:-
|CUBIC CAPACITY (CC) OF CAR||THIRD-PARTY INSURANCE PREMIUM|
|Up to 1000 CC||$. 2072|
|Over 1000 CC up to 1500 CC||$ .3221|
|Over 1500 CC||$. 7890|
The average cost of car insurance price has not increased that much in the last few years, but it has increased over the past five years. It started at an average of about Rs 2400 per year and now it’s around Rs 4000-5000 per year. The reason behind this increase was because there was a need for regulation and other factors like theft or damage to vehicles which should be covered by insurance companies. So, it’s not true that this price has increased to Rs 40,000-50,000 per year as some people claim.
Accidents aren’t the only reason. Robberies and car theft are on the rise all around the world. Small and remote areas are frequently targeted by criminals, not only in big cities. The possibility of losing the vehicle is growing. As a result, it makes perfect sense if someone decides to insure his car.
The following are the benefit of having insurance:
- You pay less and have more benefits
In the case of a natural disaster or other incident, insurance protects you against extra costs. Natural disasters can be surprising or predictable, as we all know. Insurance will protect you in the event of a landslide, flood, earthquake, or other natural disaster that damages your vehicle. It doesn’t matter if you’ve been the victim of vandalism or car theft. Consider a world without car insurance. Every time your car is damaged, you must replace every spare part with money from your own wallet, putting your bank account and some of your assets at danger. Accidents are more than simply an inconvenience; they are a financial and emotional loss. A car insurance policy safeguards your cash against unexpected expenses.
- You save more time and have less inconvenience when accidents happen
It’s also vital to obtain car insurance because of your extremely busy schedule. If you have car insurance, your insurer will assist you with the uncomfortable post-accident process, such as coordinating with other drivers’ insurers, helping you with the claims process, assisting you in finding a large repair shop, and assisting you in getting your claim processed quickly and fairly . If you have to handle the consequences of an accident on your own, it can be quite difficult.
- You feel peace when driving
Drivers will never know what traffic scenarios will happen on any given day. Even if you are one of the drivers who follows traffic rules, that does not mean that all other drivers follow the rules of the road. Accidents can occur at any time and are extremely difficult to anticipate. Insurance exists to safeguard you against that scenario and is effective in relieving you of the burden of thoughts and constant anxiety that comes with such a major tragedy. Worrying isn’t quite enjoyable, is it? Not only will this make your life difficult, but you may also become sick as a result of the stress. With insurance, you can at least feel secure in your regular activities, rather than continuously worrying or even becoming paranoid. There is no danger of being involved in an accident when you leave the house, therefore your work productivity and driving comfort are unaffected.
- You cover other drivers’ damage when you are responsible for it
Other than you, other people will benefit from the reasons for the importance of having car insurance. Car insurance now includes options for responsibility for other than the driver. Car insurance can also cover costs incurred as a result of damage to another driver’s vehicle. You, as a driver, no longer have to worry about compensation money or trouble from third parties because the company where you insure your vehicle will take care of everything. Having insurance relieves you from third-party responsibilities. Driving accidents can be caused by a single factor or they might involve multiple parties. If you do not involve anyone else in an accident, you will not be responsible for the costs incurred by the other party. So, you’re only concerned about yourself. If there are other parties involved, the situation changes. With insurance, you will not only be free of costs for yourself, but you will also not be responsible for any costs incurred by third parties involved in the crash, let the insurer handle it. Everything can be covered by insurance, including the expense of repairs and medical care.
- It can be a good investment
If you want to save money while also protecting your assets, insurance is a great option. Wouldn’t it be awesome if you could have one tool that could do everything? Learn more about insurance coverage