1. Driver’s Age & Driving Experience
Young or inexperienced drivers are considered higher risk due to a greater likelihood of accidents. As a result, insurers charge higher premiums and may impose deductibles.
2. Vehicle Age
Older vehicles are generally less reliable and involve higher risk. Insurers typically add surcharges for vehicles over 10 years old.
3. Vehicle Market Value
For comprehensive insurance, compensation is based on the car’s market value. Higher-value cars increase insurer liability, leading to higher premiums. Luxury sports cars or vehicles requiring imported parts tend to have more expensive insurance.
4. Vehicle Performance
High-performance cars with greater engine power and speed pose a higher accident risk, making third-party insurance more expensive.
5. Driver’s Occupation
Certain professions, such as construction workers, frequently drive into high-risk areas like construction sites, leading to higher premiums or policy conditions compared to office workers.
6. Deductibles
A deductible is the amount the policyholder must pay before the insurer covers the remaining claim. Policies with higher deductibles generally have lower premiums.
7. Claims History & No Claim Discount (NCD)
Insurers review a driver’s claims and traffic violation history when determining premiums. A clean record leads to lower premiums.
The No Claim Discount (NCD) rewards drivers who make no claims during the policy period with a progressive premium discount:
|
Policy Year
|
NCD Discount
|
|
1st Year
|
0%
|
|
2nd Year
|
20% (80% of premium)
|
|
3rd Year
|
30% (70% of premium)
|
|
4th Year
|
40% (60% of premium)
|
|
5th Year
|
50% (50% of premium)
|
|
6th Year
|
60% (40% of premium)
|
