You can save money on that car insurance policy

If you are a car owner, you know that one of the most important documents you are required to possess apart from your driver's license is a valid car insurance policy. Whe-ther you're looking to insure a new car or renew your existing policy, you must know what car insurance comprises and the factors that affect it, to help you understand how you can save money on the premium. Car Insurance Components Car insurance is a combination of ‘Own Damage’ and ‘Third Party Liability’ coverage. Own Damage part of the insurance covers any damage/ theft (total or partial) of the car, whereas Third Party Liability covers any damage/ injury caused to a person/ property by the insured car. The primary factors that determine your car insurance premium are the make/ model of the car, the age of the car and the city of registration. Insured's Declared Value (IDV) The make/ model of the car and the age together form the basis for arriving at the IDV of the car. All vehicles are insured at a fixed IDV. This is calculated based on the car's ex-showroom price (and the listed price of any electrical and non-electrical accessories) after deducting the depreciation for every year, as per the schedule provided by the Tariff Advisory Committee (TAC). Now consider electrical and non-electrical accessories like music systems, air conditioner, fog lights, overhead carrier, seat covers, etc - if you opt for top of the line stuff, insuring them is a must, which again will add to the value of the car and hence it would get added to the cost of your premium. Adding a CNG kit to your car will further increase your premium.