Does Car Insurance Price Vary in Different Regions in India?

Car insurance is a must-have tool of financial aid that helps you effectively manage the rising cost of vehicle damage repairs and other financial or legal liabilities that arise due to accidents. Also, according to the government Motor vehicle act, it has become mandatory to have proper third-party insurance to legally drive on Indian roads. Majority of the insurance buyers aren’t aware of the differing cost of car insurance in India and the reason behind it. 

To help you gain a comprehensive understanding, here are all the essential details regarding the varying cost insurance prices in different regions in India. Keep reading to know more!

Varying prices of the car in different regions of India

Yes, it is true that the price of insurance covers for cars varies from one region to the other in India. This is influence by the geographical elements, availability and the availability of the network of garages and service centres, etc. The details of the plans and schemes depend on the company that you have chosen as your car insurance provider. Also, there are various types of policies and plans that have different prices, creating a difference in the price that you have to pay to the insurers. 

Depending on your geographical location of yours, you can consider buying insurance plans. Car insurance plans are of various types and can offer different choices of add-ons. Pick the plans that seem to be of use in your area. For instance, if you live in Mawsynram, a city in Meghalaya, it is highly likely that your car can get stuck somewhere in the rain, or can get damage on the water-clogg roads. In that case, you must look for car insurance plans that give you the services relate to it.

You can also select various add-ons to make your plan even more helpful and better. Do it  by adding the engine protection cover and roadside assistance. Similarly, there can be many scenarios that require you to act differently by having different types of coverage in your car insurance plan. 

Therefore, make sure you keep the geographical elements of your area in mind before buying third-party insurance or a car insurance cover of any type. Since it is the one that contains all the require inclusions, you must be very particular and careful while selecting that. 

What is the division of zones in the buying of car insurance?

When you are buying your third-party insurance, there are different types of places that you might be residing in. The insurance providers have to take care of that and offer you plans accordingly. These options are given to the customers after the location of the vehicle is confirm. Since it affects the pricing of the plan and its various inclusions, you must keep this point in mind. The zoning during the purchase of your car insurance is done because of that. Here are the two major types of zones as seen by the insurance providers before offering plans and mentioning schemes to the customers –

  • Zone A

Usually, the term Zone A is use for places that are highly crowd and dense in nature. The top-tier cities of India come under the Zone A category. Since crowd places are likely to have more vehicles than most of the other places, the risk of any vehicle meeting with an accident is higher as compare to the other cities. 

Since the risk of damage increases, the price of insurance coverage also increases. For example, you are a resident of Delhi. Since Delhi is highly populate and is known for its traffic all over India, the prices for third party insurance and car insurance of other types are likely to be higher. 

  • Zone B

The places that are less crowd and have less traffic are labell as Zone B. The Semi-urban and rural areas of India come under the Zone B category. These cities are usually less populate and have a few transports running on the roads. Since this reduces the chances of accidents, the prices for car insurance coverage will also drop. It usually happens in small towns and cities that are not as develope as metropolitan ones. 

Make sure to analyse the rate of your third-party insurance plan according to the area of your residence before purchasing. It gives you a comprehensive understanding of the policy. Also, when opting for an insurance provider make sure to choose a reliable insurer like Bajaj Allianz car insurance, which has a higher claim settlement ratio of more than 98%. Visit the official website, and browse through the inclusions and exclusions of the plan to get your car insurance today!

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