Car Insurance Prices To Hike From 1st September 2018

As per the Supreme Court directives, all new vehicles will be sold out with a 3-year 3rd-party insurance starting from 1 September 2018. This action will increase the insurance prices in the upcoming months. Currently available new car insurance of third-party covers a year which is the same duration when you purchase a new car insurance policy.

The change is needed as the buyers generally do not buy the policy or renew insurance policies after completing a year, keep beside the third-party cover, therefore they defeat the provisions. According to a report, a total of 18 crore vehicles run on Indian roads and around 6 crores do not have a valid insurance coverage.

A third-party insurance coverage includes anyone who got injured in an accident except the driver and the passengers. So, this makes the situation more critical as it gives coverage to others and leave the user of third-party in a helpless situation and they do not get any compensation in any sort of misshapen.

Currently, such as Swift segment provides a year third-party coverage to users of Rs. 2863, whether it is a new or used one. So, now with the new car purchase of this segment, the insurance cost for compulsory 3-year third-party insurance will go high by approximately Rs. 5700. The minimum premium for all new swift starts around at Rs. 10,000. Consequently, it will attract a total increase of up to 50% while purchasing a new car insurance policy as compared to the insurance prices of existing models.

The third-party premium for a new Hyundai Creta starts from Rs 7890, whereas the minimum insurance coverage is of approximately Rs. 20,000.

It is also awaited that the insurance companies will provide the compulsory three-year third-party premium in consolidation with one-year insurance or make it a separate cover in the bill. The speculation also suggests that the insurance companies will give a 3-year insurance coverage with new four-wheelers, which will add-on with the prices of new cars. It also suggests that you are not paying insurance for the sequential three years.