What is a car insurance premium?
A car or motor insurance premium is the amount of cost that you pay to your respective motor insurance provider in order to enjoy the coverage and benefits of a car insurance plan.
Why is the premium rate of a car insurance policy increasing?
This becomes one of the major reasons behind the increment in the premium rate of a car insurance policy. Under a Pay as you Drive or Pay as you Go car insurance, the insurer charges a premium as per the kilometres driven by the you, which is fixed at the time of policy purchase.
What is the new car insurance price?
The new car insurance price depends on the type of plan that you are buying. If you opt for a comprehensive policy, the new car insurance cost will consist of two parts – third-party premium and own damage (OD) premium. The third-party premium for all cars is decided by the IRDA.