When you purchase four-wheeler insurance, you make an agreement with the insurance company. This online car insurance policy says that the insurer protects you against unforeseen damages in return for periodic premiums.
Multiple key factors determine this premium amount. However, it all boils down to one essential consideration: the risk the policyholder carries. This is where car safety features and insurance premiums collide.
In this blog, we explore why the insurance company rewards policyholders with reduced premiums for vehicles outfitted with certain safety features.
Car Safety Features and Insurance Premiums: The Connection
When you purchase comprehensive or own-damage car insurance, the providers assess your car along with other determining factors. These factors typically include make and model, owner-driver’s age, location, driving history, insured declared value, add-ons, deductibles and car safety features.
The basic concept of your car insurance premium roots in the level of risk the provider has to bear. For instance, if you have a bad driving record, the car insurance company is taking a risk by insuring you with a substantial amount. A bad driving record signifies an increased possibility of accidents and, consequently, claims.
Your provider determines the premium amount based on the risk you pose to them. High risk translates to a high premium and reduced risk leads to a lower car insurance premium. Let us see how car safety features make a difference.
● Minimises Accident Risks
The primary purpose of car safety features is to prevent any physical damage caused to your car due to accidents or unforeseen incidents. Features like ABS and ESC are designed to keep drivers in control and reduce the chance of accidents.
Such control over the car can be helpful in adverse conditions like heavy rains and storms. Also, statistically, such vehicles are less likely to cause severe accidents. Fewer accidents mean lower chances of the policyholder filing a claim.
● Prevents Accidental Injury
Car safety features ensure the safety of the owner-driver as well as the car. Airbags and seatbelts are two crucial safety measures that increase safety 10-fold. Airbags, in particular, play a critical role in cushioning occupants during collisions, reducing the likelihood of severe injuries.
With these tools, you are reducing the extent of injuries and lowering the potential cost of medical attention. This also means that the cost of claims will be less than what it would be otherwise.
● Increase Security Level
Partial and total loss of a four-wheeler can result in a substantial financial loss and a high claim amount. Anti-theft devices like alarms and tracking systems can minimise the chances of your car getting lost, stolen or vandalised. You can also prevent the theft of spare parts.
These security systems can alarm you when a thief is in the act. Some advanced devices even alert you about this. With the help of these anti-theft tools, you can significantly optimise the four-wheeler insurance premium amount, even for an expensive car.
● Results in Lower Premiums
All the factors mentioned below contribute to a lower car insurance premium:
- Enhanced control over car functioning
- Reduced risk of accidents
- Prevention of accidental injuries
- Minimising the severity of injuries
- High security with anti-theft devices
- Reduced likelihood of total loss
When the provider is convinced that your car is less likely to become the cause of a huge claim, they assign a lower car insurance premium. If you want to reduce our premium amount, you can invest in some essential car safety features that will have a noticeable impact.
Essential Car Safety Features to Optimise Car Insurance Premium
● Anti-Braking System
ABS, or the Anti-lock Braking System, is a vital feature for controlling a vehicle during heavy braking. This device offers enhanced control at times when emergency braking is required.
● Airbags
Airbags play a significant role in minimising injury during collisions. By deploying upon impact, they provide a cushion that reduces the force exerted on occupants and significantly reduces the injury risk.
● Anti-Theft Device
Installing anti-theft devices like alarms and GPS tracking systems can help prevent car theft and increase the likelihood of finding the vehicle in case of theft.
● Rearview Camera
A rearview camera is a pre-installed device that helps drivers see obstacles and pedestrians behind the vehicle. This minimises the risk of colliding with objects, people or property.
These devices are highly useful when it comes to reducing your car insurance premium amount.
Ending Note
Investing in a vehicle with advanced car safety features benefits you in multiple ways. With leading insurers like TATA AIG, it not only reduces the car insurance premium but also increases your physical and your car’s safety. Ultimately, that is the primary goal of any insurance: to increase your financial and physical security.
In summary, the insurers reward you with a lowered premium thanks to the increased safety and decreased risk.
