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​​Buying car insurance for your ride is quite a task unless you are an expert at it.​ If you are car is not older than five years, there are chances that you will be chased by auto insurance companies trying to sell an appropriate policy. However, you must choose the right policy only going through each every term and condition mentioned in the document as there are a lot of people who buy a policy and eventually fall prey to the marketing gimmicks of the insurance companies. There are a lot of websites offer the best policies and there are portals that allow you to compare multiple policies and help you select the best one. It is advisable to settle with the insurance company that is offering the best deal. Most people do not know what to look for in a car insurance policy. Here are a few points which you must check before you buy car insurance policy –

First, it is best to understand the types of car insurance offered by insurance companies –

Third party insurance – This type of insurance is mandatory and is required by all the vehicles running on Indian roads. This plan covers accident or death caused by accident and damage to property.

Comprehensive Plan – Most people in India go in for the comprehensive plan for the simple reason that it covers both damage caused by self and by external sources like legal or third party. The best part about comprehensive car insurance​ is that it covers damage caused by natural and unnatural calamities and mishaps as well. 

Now, let’s understand the factors that determine the insurance premium of your vehicle –​

Vehicle type: The insurance premium differs on the basis of the vehicle type which comprises of the car make, fuel family and the basic model type. People owning SUV or sport utility vehicles are ought to pay higher premiums as compared to people owning multi-utility vehicles and hatchbacks. The reason why this is high is because the insurance companies get more number of claims for SUVs during a year than its smaller counterparts. The diesel vehicles have a higher premium than petrol variants. 

The Maruti car insurance value on a car that is less than 5 years old is calculated on its ex showroom price and the insurance value on a car that is more than 5 years old is calculated on its market value. 

Location type: The premium for cars belonging to cities is higher than the ones in villages. Also, people living near highways or in highly populated areas have to pay a higher premium as there are higher chances of road mishaps or accidents. If a person is living in an area which is popular for thefts, the premium goes up.

History: If you have previously claimed for your vehicle, the premium can go up in the subsequent years.​
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