To counter car burglary, manufacturers today equip their brand-new models with anti-theft devices. Besides benefiting you, it significantly helps the motor insurance providers as well. It reduces the number of burglary-related policy claims. As a result, insurers’ expenditures on such compensations decrease. Since installed anti-theft devices favour insurers significantly, they reward customers by lowering the premium price.
What is Anti-Theft Device?
Anti-theft devices on cars are smart gadgets that restrict unauthorised access to vehicles. Car manufacturers use numerous sensors and devices to manifest this advanced security system. Some of these smart technologies turn on alarms, and some freeze the car parts, including steering shafts, wheels, engines, etc. Some of these anti-theft devices are, as follows:
- GPS Tracking: It lets you know the real-time positioning of your stolen vehicles. This helps you easily locate your car.
- Car Alarm: This sensor based alarm automatically turns on when an intruder tries to tamper with your vehicle.
- Electronic Immobiliser: It is a smart system in which manufacturers install sensors in vehicle’s keys. The engine starts only after getting signals from the key.
How do Anti-Theft Devices Influence the Premium of Your Car Insurance Policy?
All these anti-theft devices nullify the ill-motives of intruders, thereby saving your vehicles from being stolen. As a result, there will hardly be an occasion for you to intimate your insurer to place a burglary-related claim.
As these anti-theft devices reduce the risk factors of insurers, reducing premium on your comprehensive car insurance policy. It can let you obtain a discount of around 2.5% on the regular premium price of the motor insurance plan. You simply need to inform your insurer that your car is equipped with smart anti-theft devices to get this benefit.
Besides these anti-theft devices, there are various other factors that insurance companies consider while determining the premium of your vehicle insurance policy.
Factors That Impact Premium Amount of Vehicle Insurance Plans
Following are some major aspects that insurers check while calculating the premium amount:
The IDV (Insurance Declared Value) influences the premium amount directly. You have to pay more on premiums if the IDV amount is higher. However, since the value of a car depreciates with time, insurers reduce the sum insured for older vehicles as well. This is why the premium amount gradually decreases with the overall age of your vehicle.
Due to increased traffic and congested roads, the chances of accidents are more prominent in metro cities than in small towns and rural areas. As a result, insurers charge more premium amount if the car is registered from a metro city.
Insurance companies also let you opt for voluntary deductibles. After choosing this facility, you will have to share a pre-set percentage of the claim amount while repairing your vehicle. It reduces insurance companies' financial liabilities. As a result, they offer reduced premium amounts.
- No-Claim Bonus
Insurers also extend the no-claim bonus facility on vehicle insurance policies. It helps you reduce your premium amount by a pre-stated percentage when you do not place a claim for the policy benefit in the previous year.
- Fuel Type
You have to pay less premium amount if your vehicle runs on petrol in comparison to the same model with diesel/CNG engines.
- Make and Model
Insurance providers charge a higher premium for feature-rich and high-end car models. For example, you need to bear a higher cost for buying a motor insurance policy for a sedan than a hatchback.
Add-ons like engine protection cover, no claim bonus cover, zero depreciation cover, etc., enhance the coverage of your comprehensive motor insurance policies. As a result, you can enhance the overall protection of your vehicle with these. However, to leverage these added protections, you need to pay an extra premium amount.
How Can You Calculate the Premium of Comprehensive Car Insurance?
Using the motor insurance premium calculators, you can easily determine the cost of the policy. Most insurance companies offer this virtual tool on their websites.
Here are some quick steps you need to follow to measure the premium amount of your vehicle insurance plan:
Step 1: Access the online tool from the website of an insurance provider
Step 2: Enter inputs, including your mobile number, registration number, etc.
Step 3: Fill in the input boxes with fuel type, make and model, vehicle number,
Step 4: Pick a plan
Step 5: Mention your basic personal details such as address, date of birth, etc.
Step 6: Submit these values
After this, you will be able to view the insurance premium on the result screen.
In conclusion, anti-theft devices enhance the security aspects of a vehicle, reducing the chances of burglary. Insurers offer attractive discounts on premiums if your vehicle comes with these features because they reduce the chances of theft-related claims. So, while buying a comprehensive policy, you should inform your insurance company if your vehicle has anti-theft devices installed. While comprehensive insurance is beneficial, you must know that having a third party car insurance has been mandated as per the Motor Vehicles Act, 1988. So ensure that you get third-party insurance for your car.