Car Insurance and the

Falling Rupee The Effect of Rupee on Car Insurance

Introduction

The recent sharp depreciation in the Rupee will definitely affect costs, and car insurance premiums are expected to rise.

Over the last few months, the value of the Rupee has depreciated by more than 20%, and this has increased the prices of the imported spare parts of cars, among other things. This increase in the price of spare parts is the real culprit behind the increase in the insurance rates.

However, even with these increased premiums, we still require our car insurance policies, so we should figure out which policy best suits our financial needs and limitations.

About Car Insurance

Today, many people own a car, and a large

percentage of these people own high-end

luxury cars.

No matter how expensive or inexpensive your car is, in India, it is mandatory to have car insurance.

A small percentage of the price of the car we are insuring is the insurance premium.

How Rupee Fall Affected Car Insurance

The recent fall in the value of the Rupee has led to the increase in the prices of most cars, especially those like Audi and BMW, which use fairly more imported spare parts than other local companies.

Experts predict that premiums will most likely increase at the time of renewal because of the increase in car prices. Some people also predict that this increase in price, both of the car, and the insurance policy, would only be for the high-end luxury cars, and perhaps not for all the locally made cars.

However, the cost of spare parts does have a direct relation to the cost of the insurance premium, and people may be looking at a 15 or 20 per cent increase in their insurance premiums.

What Insurance Companies Have Done

An increase in the cost of a car as well as an increase in car insurance premium rates means that people would have less cash in their hand.

However, there are several insurance companies and policies available to us. The large number of insurance companies has led to competitive premium rates.

This means that people will be able to insure their car against theft, explosions, burglaries and accidents, without having to shell out too much money for an insurance policy.

What You Should Do

Ideally, people should get different car insurance quotes before zeroing in on a single policy.

Today, with the use of the World Wide Web, getting information about the different insurance policies available to us is very easy.

On their web pages, insurance companies list out what damages are covered under their insurance policies, and also list out what other benefits you can get if you buy their policy.

Apart from the insurance

companies’ websites, there are

many other websites that

exclusively help you compare

insurance policies online.

Comparing Car Insurance Online

By checking online for car insurance policies, we can easily compare and calculate which policy would be most economical.

Once we have compared all the policies, we can decide which policy to buy.

For most people, it may be difficult to physically go to the office of the insurance company, so it is also possible to buy car insurance online.

Conslusion

There are several policies available, and based on how and for what you use your vehicle, choose a policy that will best cover any and all damages to your car.

Some policies may not include theft or fires, while others may not include floods and earthquakes, so always remember to check what is and is not covered under your policy before you make your final decision.