The cost of car insurance premiums is affected by a lot of factors. Having a basic understanding of the factors can help you save on the cost of car insurance at the time of purchase or renewal. Following are the factors that affect car insurance:


Car registration location: Cars registered in a tier 1 city tend to attract a higher amount of premium than the ones registered in tier 2 or 3 cities.


Manufacturer and variant type: Different variants of cars attract different premium amounts as the amount of coverage to be offered depends upon their value in the market.


Safety/Anti-theft security in cars: If there are adequate safety systems installed in cars that might prevent theft, the risk decreases leading to lower cost of the premium.  


Policy type: A Comprehensive car insurance is a little expensive than third-party car insurance as it provides extended coverage benefits for your car damages. Meanwhile, third-party car insurance comes with a relatively cheaper premium as it only provides basic third-party coverage benefits.


Add-On Covers: The additional coverage you will opt for with comprehensive car insurance directly impacts the amount of premium to be paid for the car insurance.