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Factors Affecting the Cost of Your Reliance Car Insurance Policy

By Juhi Walia
07 October 2022, 12:00 PM

A car insurance premium is the sum of money you spend to protect your four-wheeler against any legal or financial obligation arising from unforeseen incidents.

In addition to third-party, Reliance General Insurance offers own damage, comprehensive, and collision coverage. Reliance car insurance premiums are usually determined by the coverage the policy provides.

Using risk as a guiding principle, you can determine how much car insurance will cost. The following factors determine insurers' risk:

  • Background of the owner
  • A description of the vehicle's type and make
  • A description of the geographic location.

Insurance costs are influenced by many factors other than coverage and benefits. Obtaining car insurance with sufficient coverage at a reasonable price requires understanding the factors influencing insurance policy costs.

All prerequisites must be met before a claim can be granted. When purchasing Reliance auto insurance, the premium is the most significant factor, although we all want high-quality coverage at an affordable price. To obtain a policy that offers enough coverage at a reasonable price, you must understand the elements that influence the cost of auto insurance.

The following factors influence the premiums for Reliance car insurance:

Costs of Reliance Car Insurance - Factors to Consider

Your Reliance car insurance premium is affected by several factors, so it's essential to be aware of them before you purchase or renew your policy:

1. Variant, Model, and Make 

Luxury SUVs or high-end are more expensive to insure than hatchbacks. Because the car's components and specifics change over time, the cost of the vehicle increases and decreases, placing more strain on car insurance companies. Consequently, your Reliance auto insurance rate is directly affected by your vehicle's model, manufacturer, and other characteristics.

2. The Car Period

Automobiles lose value over time due to depreciation on their IDV. Wear and tear causes a car's value to depreciate over time, whereas its actual market value determines its depreciation. An older vehicle's IDV in car insurance would be lower due to depreciation over time. Essentially, insuring your old vehicle will be relatively a lot cheaper than insuring a new car.

Read more - Does It Make Sense To Increase Your Car’s IDV?

3. Location of the Car

In tier 2 and 3 cities, obtaining a Reliance car insurance policy costs much less than in metropolises. Traffic, congestion and crime are among the factors that contribute to automobile losses or damages in urban municipalities.

4. Insurance Coverage

Types of coverage determine how much your Reliance automobile insurance costs. Carrying only Reliance third-party car insurance coverage will save on your insurance premiums. In addition to third-party liabilities, Reliance comprehensive car insurance policies cover your own damages.

5. Add-on Covers

Your car's protection can be extended with add-on covers. 

The following are some Reliance car insurance add-on covers:

  • Zero depreciation coverage
  • Return to invoice coverage
  • Passenger coverage
  • Loss of personal belongings
  • Consumable cover

Adding add-ons will raise your overall premium. It is therefore recommended that you only purchase add-ons that you genuinely need.

6. No-claim Bonus (NCB)

If you haven't made a claim during your previous policy period, you will receive a discount on your Reliance car insurance renewal. Do not raise a claim in a hurry. Decide whether raising a claim makes sense after considering the NCB component (if applicable).

7. Deductibles

You can choose a voluntary deductible if you want to reduce your Reliance car insurance premium. By this, you are effectively contributing towards the claim amount. Therefore, the premiums charged by the insurance company are lower because it has to pay less for settling car insurance claims.

8. Demographics

Insurance costs are higher for people living in zones with a high rate of wrongdoing or a higher incidence of crime. This is because crime-ridden areas are more likely to experience accidents than crime-free areas. After all, people living in those areas are more likely to be involved in accidents or potential incidents of car-jacking, arson, etc. As a result, insurance rates go up in such areas.

Key Takeaways

Some factors may indeed increase your car insurance rate, but you can also reduce them by utilizing them appropriately. Learn more about the factors that may affect your car insurance rate to select a plan that meets your needs and budget.

Read more -


1. What are the three factors that determine your cost of Reliance car insurance?

Reliance cars insurance rates are primarily affected by the make and model of the car. Car insurance costs increase as you buy more coverage and your vehicle becomes more valuable.

2. Why is my Reliance car insurance premium so high?

Insurance rates are typically higher for people with:

  • A poor driving record
  • Living in tier-1 cities
  • Living in a flood-prone area.

Reliance will likely raise your insurance premiums if it determines that you are more likely to be involved in an accident and file a claim.

3. How are Reliance insurance premiums calculated?

It depends on the coverage, the person who purchases the policy, and how much the insurance premium will be. The amount you'll pay depends on many factors, but your level of coverage and personal information, such as your age, are the most important ones.

4. Does credit affect car insurance rates?

A credit score does not impact car insurance premium rates. The role of a credit score is restricted to lending products.

5. Why are new car insurance policies so expensive?

For one thing, the IRDAI has asked insurance companies to provide three-year third-party insurance coverage for new cars and five-year coverage for new two-wheelers. You must pay the premium for the entire term (three or five years when getting insurance).

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