Car Insurance is now mandated in India that helps to cover any damage caused to the vehicle under the insurance policy. For this, the insurer pays a premium and insurance company provides for the expenses caused by the damage to the vehicle. Along with this, third party coverage is made a mandate under the Motor vehicle Act 1988.

It is often noticed that premiums are increased at the time of renewals. Here are some specific factors that affect the policy premiums and finally result in an increase in the premiums.

• History of an individual driving and claims
• Medical conditions that are prone to higher risks along with drink and drive charges convictions
• Change in structure of the insurance plan
• Change of employment
• Adding or removing drivers from the policy

Along with this, there are few external factors that even increase the overall premiums even. It is experienced that even if there are no changes from your side or from internal factors, the premiums of Car Insurance also increases. There are certain conditions that impact and increase premiums include – change in the locality of living, high traffic that leads to more chance of accidents, etc.

How to lower the premium rates

In order to reduce the Third Party Car Insurance premiums or normal insurance premium rates always check these factors that affect the premiums directly. Always look around the market rates and then decide on the insurance company. Significant and expensive models of the vehicles also decide the premium of the car.