INSURANCE TO GET COSTLIER

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You have had fuel price hikes. And then manufacturers want to hike car prices because fuel prices have increased. Add to that, starting next January, you may end up paying more money to insure your car.

Car insurance in India has always been cheaper than global levels. Prices were regulated and there were only a few limited parameters that were used to set the premium. Things are going to change from January 2007. You may pay up much more if you are accident prone, or if your car is unsafe, or if it is bought in a region where car theft is more common, or if the model you have bought is prone to theft, or... Essentially, insurance companies will decide the premium on many such factors and the cost of insuring the car may go up considerably. So expect to pay much more for a car if you are planning to buy one in 2007 or later.

This is a pricing policy that is commonly used in the west. The new pricing method means that you need to be very careful with your car. Frequent crashes and problems can drive up the cost of insurance and owning the car may become prohibitive. At the same time, no claims for a long time may help you cut down insurance cost.