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How Much Does It Cost to Insure a Hatchback?

By Admin
15 June 2022, 12:44 PM

Hatchbacks are small cars perfect for nuclear families or individuals traveling on their own. The maximum seating capacity for hatchback cars is four people. Hatchbacks meet the minimum specifications of a vehicle and are very cheap to buy. Some of the low-end models like the TATA Nano cost around INR 1.5 lakh.

Some cars like Maruti Suzuki Baleno or Hyundai Elite i20 start at INR 6.5 lakh. This price differential is due to the presence or absence of such features offered — for example – the level of safety features, comfort, built-in infotainment systems, etc. Depending on the ex-room price of the car and the features offered, the cost of insuring these hatchbacks also varies. But generally, the cost of insuring a hatchback is much lower than sedans or SUVs.

Factors Affecting the Price of Premiums for Insuring a Hatchback

The following factors play a significant role in deciding the insurance premium for any hatchback.

1. Make, Model, CC and Variant(petrol/diesel)

The premium is highly dependent on the make, model, engine capacity, and variant type. As a general rule higher the engine capacity, and the higher the model ranks in the class, the higher the premium would be.

2. Type of car insurance policy you choose

Car insurance plans can usually be of two types: third-party insurance and comprehensive insurance. The distinction between the two is the coverage offered. The third-party policy allows for coverage of mishaps with the third party concerned. And comprehensive compensation covers for third parties, losses to the insured vehicle, and Add-on coverage. Hence, the premium prices are higher for comprehensive insurance policies.

3. Ex-showroom price

This price has a direct impact on the premium for automobile insurance. IDV that is. The insured declared value of the insured car shall be determined based on the ex-showroom amount. The IDV is 95% of the Ex-Showroom price for a one-year-old vehicle.

4. City of Registration (Zone A or B)

To measure the premium, India is divided into two regions. Zone A covers the eight famous cities of Chennai, Mumbai, Kolkata, Bangalore, Hyderabad, Pune, Ahmedabad, and New Delhi, while Zone B covers the rest. Zone A cities are more vulnerable to threats resulting from heavy traffic and a larger population. 

These factors are seen to lead to higher occurrences of injuries and thefts. Therefore, if your car has been registered in one of the cities protected by Zone A, you are entitled to pay extra for your auto insurance.

5. IDV

The lower the IDV, the lower the premium you pay. A lower IDV can help you save on a premium. But it is always advisable to choose the correct IDV of your car so that you can get a full amount of claim. 

6. No Claim Bonus

The NCB is the abbreviation of the No Claim Bonus. This is the discount given on the renewal of auto insurance for safe driving during the previous policy period. The NCB is cumulative in nature and rises with each successive claim-free year. You can get up to a 50% discount on the policy premium if no claims are raised in 5 consecutive years.

7. Deductibles

A deductible is an amount that must be charged till the time the claim is made. There are two forms of deductibles-compulsory and optional. The compulsory deductible must be paid at the time of the claim. However, you can set the sum of the voluntary deductible. This affects the premium, as you have essentially agreed to pay part of the cost of the car insurance claim in advance.

8. Add-on covers

Add-ons are additional coverage opportunities provided through a comprehensive auto insurance policy. The more add-ons one buys, the higher the cost of their auto insurance policy.

9. Anti-theft devices or any other discounts

Installing an anti-theft system on your hatchback can reduce policy costs to some degree. Insurance firms respect the fact that you are taking the initiative to shield your vehicle from theft and thus recommend giving a discount.

What is the Approximate Cost of Insuring a Hatchback?

Based on the above factors, the cost of insuring a hatchback could be between INR10,000 and INR25,000. Again, this depends on the factors that affect your auto insurance premium. However, the money you pay to have your hatchback covered is much less than the amount you will have to expend in the event of an unfortunate event. Secure yourself and your vehicle with insurance, not only because it is legally binding but also because you must be prepared in the event of accidents, robbery, etc. 

Premium Prices for Popular Hatchback Cars 

The table below shows the price range for insuring your hatchback vehicle.

Maruti SwiftINR 12,000 to INR 22,000
Maruti Suzuki BalenoINR 15,000 to INR 20,000
Tata TiagoINR 10,000 to INR 15,000
Hyundai Elite i20INR 20,000 to INR 25,000
Maruti Suzuki CelerioINR 12,000 to INR 15,000

Conclusion 

Hatchbacks are small cars perfect for nuclear families or individuals traveling on their own. The price differential in hatchbacks is due to the presence or absence of features offered. Depending on the ex-room price of the car and the features offered, the cost of insuring these hatchbacks also varies. 

The type of insurance policy chosen and the add-ons and deductibles also affect the premium price. The money you pay to have your hatchback covered is much less than the amount you will have to pay in the event of an unfortunate event. Hence, insurance for your hatchback is highly recommended.

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