Having car insurance is deemed to be compulsory by law. With digitalisation, you can easily purchase the best car insurance online from the comfort of your home. Many acclaimed insurers like Bajaj Allianz, Acko car insurance, etc. offer online services. However, there is still a dilemma among the buyer on whether the SUV car insurance is higher than that of a Sedan. Here are some factors that decide whether or not an SUV car insurance policy costs more than a Sedan. Read to know more!
1. Vehicle type:
We know that different four-wheelers serve various purposes. Sedans offer bigger cabin space, while SUVs drive well in off-road conditions. Traditionally, the SUVs were equipped with complex mechanical, high-capacity engines and off-road-focused features, enabling them to tackle terrains. However, it offered a premium ride only in an expensive SUV.
In recent years, the new SUVs have been compacting but boast spacious cabin, luxury features, and plush ride at a price equal to sedans. Vehicle type and cost play a crucial role in determining the pricing of a car insurance policy.
Moreover, the price gap between Sedans and SUVs is narrowing, reducing the insurance premium. Acko car insurance considers the vehicle’s market value while determining the car insurance online. In short, the higher the market value, the higher the insurance premium.
2. Manufacturing year:
The vehicle’s manufacturing year reveals the vehicle’s age. The Acko car insurance also considers the age of the vehicle while determining the car insurance premium. It is due to the depreciation factor. So, a new car attracts a higher car insurance price when compared to the old one. That is why the insurance providers consider the manufacturing year also into calculating the premium range of your car insurance policy.
There is regular wear and tear on the motor parts, whether the car you bought is Sedan or SUV. In conclusion, newer vehicles attract higher premiums since the age of the vehicle is crucial in deciding the car insurance online.
3. Fuel type:
Typically, petrol vehicles are cheaper than diesel vehicles. Thus, Acko car insurance provides lower premiums on petrol cars. Moreover, the cost of the vehicle determines the premium of the car insurance online whether you purchase a petrol, diesel, CNG, or LPG vehicle. Also, there’s a good chance that the insurance premium for a petrol SUV is cheaper than a diesel Sedan.
Moreover, the insurance premium will increase if you install an LPG or CNG kit to your SUV or sedan. Apart from just considering the type of your car, the insurer will calculate the premium range by including the fuel type of the vehicle along with other attributes.
4. Engine’s capacity:
The cubic capacity or engine capacity is one of the influencing factors in determining car insurance online. A large-sized engine will undoubtedly attract higher premiums since the vehicle’s market value is higher. The engine also plays a crucial role in the estimation of the insurance policy cost of your car. The SUVs have a separate engine compartment where the engine is placed, unlike the Sedan models.
Moreover, Acko car insurance decides the third-party liability premium based on the vehicle’s engine capacity and not the type of SUV or Sedan.
5. Insured Declared Value (IDV):
The IDV is the approximate current market value of the insured vehicle. The Acko car insurance and you mutually agree on the premium when you buy or renew the plan. It is also the amount you will receive when your vehicle gets stolen or undergoes total loss.
Moreover, you can increase the IDV while buying car insurance online. However, increasing the IDV will increase the premium and vice versa. Also, it will reduce the claim amount. So, it isn’t a case where all SUVs are more expensive to insure than Sedans.
6. Location:
Location is another crucial factor to consider while buying car insurance online. Areas vulnerable to accidents, thefts, or natural calamities tend to attract high insurance premiums. Moreover, purchasing vehicles in such locations requires car users to pay high insurance costs.
Thus, Acko car insurance also considers the location in determining the insurance cost of the policy.
Does car insurance for SUVs cost more than Sedan?
Traditionally, the car insurance of SUVs was expensive due to performance parts employed to tackle some challenging terrains. However, with the introduction of small and mid-segment SUVs, the insurance prices are on par with the Sedans. In recent years, SUVs have had the features and comfort of sedans.
Moreover, purchasing car insurance online and the costs are on the same lines. Thus, the expenses of the vehicle are one of the crucial aspects to consider while buying from Acko car insurance, whether it is an SUV or a Sedan. Make sure to analyse all the insurance policies online before narrowing down to the one that is right for you.
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