• Mon. Oct 14th, 2024

Does The Colour Of Your Car Affect Car Insurance Prices?

Byadmin

Jan 10, 2024
carinsurance
287 Views

Several variables, including the policy type, the car’s make and model, the engine’s cubic capacity, etc., determine the amount of the premium for car insurance. But does the colour of a car affect how much it costs for four-wheeler insurance? Do you have to pay more for insurance if you want to own a red car instead of a white one, for instance?

The answer is more complex. For the details, read on.

Does The Colour Of A Car Affect How Much Insurance Costs?

Depending on several variables, the car’s colour may affect how much insurance costs. This is the justification.

In Case Of Third-Party Coverage

Regarding the basic third-party car insurance policy, the engine cubic capacity of the vehicle determines the premium. India’s Insurance Regulatory and Development Authority (IRDAI) sets the rates. Therefore, there is no chance that the car’s colour will directly or indirectly affect the insurance cost. #

If You Have Comprehensive Coverage

When purchasing or during car insurance renewal online, the insurer typically doesn’t ask you to disclose the colour of your vehicle. Thus, the car’s colour does not directly affect the final four-wheeler insurance cost if other factors are considered. But it might have an unintended consequence. The sections that follow explain how this functions for a comprehensive car insurance policy.

The Correlation Between A Car’s Colour And Insurance Costs

Now that we know there isn’t a direct correlation between a car’s colour and insurance cost let’s examine the indirect correlation in more detail using the example below.

Let’s say you win Rs. 10 lakhs in the lottery. You believe now is the ideal moment to fulfil your dream of becoming a car owner because you have such a sizable bounty in your cat. You visit the closest car dealership and make a shortlist of the newest sedan. However, there needs to be some clarification. Which one—the red or white one—should you choose?

You consider the long term when there is nothing, save colour, that separates the two cars. For a minimum of the next ten years, or until you decide to part ways and get a new car, you consider the cost of keeping it insured with a comprehensive car insurance policy. Will choosing the red car over the white one result in a higher insurance cost? The salesman responds, “Yes,” with a drum roll.

Since everything else is the same, you wonder why. Both cars are the same make and model except for colour and have identical features. In response, the salesperson states that the red car’s cost is higher because of its demand. Additionally, a car’s cost determines the insurance premium. You can use an IDV calculator to calculate costs involved.

The price of the white car will increase if demand for it rises in the future. As a result, the cost of a car is determined by the demand-supply relationship, which also determines the insurance premium. Make sure you utilise the ideal car insurance add ons for more coverage. *

* Standard T&C Apply# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *