What is own damage car insurance premium?
Own Damage premium is an important investment for vehicle owners who seek financial protection against damage. It is a part of broader car insurance coverage and covers the cost of repairs to or replacement of your vehicle. This way, it also offers you peace of mind by alleviating your financial burden.
Apart from covering physical damages, your OD premium in insurance provides several other benefits depending on your policy. Some examples include roadside assistance, towing services, and coverage of certain damages. The cost of your premium and what it covers depends on several factors, including IDV, age of the car, and more.
Your OD car insurance premium is a proactive approach to managing any risks related to vehicle ownership. It offers a safety net that helps you protect your investment ans reduce any unexpected financial strains.
How is own-damage car insurance premium calculated?
The Own Damage premium price is calculated based on a few factors that provide accurate risk assessment to come up with an effective premium price.
An important factor that is considered by insurers is your IDV or Insured Declared Value. It is the maximum value that an insurance company pays in case of car damage. A higher IDV means a higher premium cost.
Factors, such as your car’s age and model, can also decide your Own Damage Premium price. For instance, a standard car model will always have a lower Own Damage premium price than a luxury model. Lastly, the cubic capacity or CC of your car also decides the Own Damage premium price.
Your premium price is calculated based on several such factors. Other aspects such as additional covers can also affect the final price. Moreover, carrying any NCB discount, which usually ranges from 10-50%, can also lower your Own Damage premium price.
Factors affecting own damage car insurance premium
Own Damage premium is an important expense for vehicle owners. It prevents potential financial loss due to accidents, natural disasters, theft, and vandalism.
The OD premium amount depends on several factors, such as –
- Vehicle Type and Value: The type and value of your vehicle significantly influence the OD premium. If you own a premium segment vehicle with advanced features, it will cost you higher premiums. This is because these vehicles have an increased repair and replacement cost.
- Age of the Vehicle: As the vehicle ages, its market value decreases, which can lower premiums. However, it also lowers the IDV due to depreciation.
- Location: The locations where you usually drive or park your car can also have an effect on the Own Damage premium. For instance, living in an area with high theft rates or which is prone to natural disasters can lead to higher premiums.
- Insured Declared Value (IDV): IDV is the market value of your vehicle. Hence, a higher IDV will increase your premium amount because it increases the insurer's liabilities.
- No Claim Bonus (NCB):If you have accumulated NCB, your premium amount may be reduced. This acts like a reward for policyholders who dio not make any claims in previous years.
How to reduce own damage car insurance premium amount?
Here are some tips for getting the best deal on your car’s Own Damage insurance –
- Compare
Always compare the benefits of companies and agents before purchasing your car's Own Damage insurance. This also allows you to choose the best standalone Own Damage policy by comparing the premium rates. You can lower your existing premium as well by asking your insurer for loyalty discounts.
- Be wise with coverage and add-ons.
If you want to lower the amount of your OD premium, select a policy that lets you opt out of the features that you do not need. This will reduce your Own Damage premium to a certain extent. Moreover, be selective with your add-ons and buy only those which you truly need.
- Increase your voluntary deductibles.
Deductible is the amount you pay out of pocket when making a claim. Choosing not to pay the deductible will help you receive your complete claim amount. However, the premium of your Own Damage car insurance price will also go up. It is advisable to increase your voluntary deductibles to decrease the cost of your premium.
- Install anti-theft devices in your car.
Generali Central offers a special discount if you install ARAI-approved anti-theft devices in your car. This allows you to reduce your premium rate while decreasing the chances of vehicle theft.
Who should get a standalone own damage car insurance policy
A standalone damage policy gives you a balance between affordability and extensive protection. Here are some people who can benefits from this insurance plan –
- New Car Owners
A standalone Own Damage policy covers the cost of damages caused by accidents, theft, or even natural disasters. This way, it protects your investment as a new car owner.
- Owners of Expensive or Luxury Cars
High-value vehicles also come with high repair costs. An OD policy ensures that any damage to your vehicle does not create a huge out-of-pocket expense for you. This is why it is the perfect choice for luxury car owners.
- Vehicle Owners with Older Policies
An OD car insurance policy is essential if your vehicle is no longer covered under a comprehensive plan. It enhances your car’s protection without needing to overhaul your entire insurance plan.
- Budget-Conscious Owners
If a comprehensive policy is too expensive for you, a standalone Own Damage policy can provide essential coverage at lesser costs. This is because an OD insurance for your car is more affordable while providing you peace of mind.
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