What are factors affecting car insurance premium?

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What are factors affecting car insurance premium?

Insurance Premium
Motor insurance premium on a motor vehicle in India can be classified into two parts  -- own damage premium (OD Premium) and third-party premium (TP Premium). While own damage (OD) premium is determined by a vehicle's insured declared value (IDV) (value of the vehicle after depreciation), the third-party (TP) premium is fixed by the insurance regulator and depends on the volume of the vehicle.
Premium for private vehicle is based on parameters like Insured Declared Value (IDV), Cubic Capacity (CC) of the insured vehicle, Geographical Zones and age of the vehicle.

  •     Insured Declared Value (IDV) of the vehicle : This is a function of current showroom priceCubic

  •         Capacity : Cubic capacity is segregated in three slabs viz.
o   Less than 1000 cc
o   More than 1000 cc but less than 1500 cc
o   More than 1500 cc

  •         Geographical Zones: For the purpose of rating, India has been divided into the following zones depending on the location of the office of registration the vehicle.
o   Zone A: Zone A includes Ahmedabad, Bangalore, Chennai, Hyderabad , Kolkata, Mumbai, New Delhi and Pune.
o   Zone B: It includes rest of India

  •         Age of the Vehicle
o   Not exceeding seven years       

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