Over the previous two years, the onset and abatement of COVID-19 have significantly impacted worldwide mobility. The extended lockdowns and other restrictions fundamentally had a significant negative impact on both the travel and automotive industries. The auto sector has now recovered more quickly from intermittent brakes, and the data indicates that it will soon surpass pre-pandemic levels. This fluctuating pace of mobility has also affected car insurance policies, which is a legitimate and essential component of the automotive business.
Consumers Like Comprehensive Policies
The legal need for third-party insurance offers compensation for damage the policyholder’s car causes to a third party in the event of a vehicle meeting with an accident. Owners choose a comprehensive insurance policy that also covers their damage because this is not a foolproof strategy for total protection. First-time car owners must purchase one-year comprehensive coverage alongside a three-year third-party car insurance policy, but for the second and third years, only standalone personal damage car insurance is mandatory.
Graph Of Increasing Premium
The increase in underwritten car insurance prices, according to statistics from the General Insurance Council, can be used to determine general buying trends. Since the past two years, there has been Y-o-Y growth in the overall premium underwritten. Own Damage and third-party car insurance online underwritten premiums both reflect this. *
Plans Available Based On The Age Of The Car
Depending on how old the car is, there are several insurance plan choices.
Most clients choose comprehensive auto insurance for cars under seven years old for its extensive coverage. The add-on choice in the lower car age category also reflects this preference.
Preference For Upgrades Based On A Car’s Age
Most car owners choose add-ons at an additional cost to increase safety. Depreciation, for instance, doesn’t just apply to old automobiles; it also applies to new cars as soon as they leave the dealership. The zero-depreciation cover continues to be the most popular add-on in light of this. The engine protection cover, roadside assistance, consumables, and return to invoice cover are listed after that. When purchasing a policy, the majority of clients choose several add-ons, such as zero depreciation, return to invoice cover, engine protection cover, consumables, etc. *
Variation Between Metro And Non-Metro Cities
According to data trends, more metropolis residents choose a comprehensive plan over a third-party plan, even for vehicles older than ten years. In addition to this, these cities provide a wider variety of add-on amenities than non-metropolitan areas. Even then, there has been a trend towards add-ons.
In response to evolving consumer needs, the car insurance industry is continuously adapting by offering diverse coverage options and flexible policies. By doing so, they are ensuring that customers can find the protection that suits their specific circumstances. This adaptation reflects the industry’s commitment to meeting the dynamic requirements of both first-time car owners and experienced drivers.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.