Indian car insurance companies

Indian car insurance companies

 Car insurance companies in the UK and other places have always charged a higher premium for red colour cars. Now you may wonder why, but according to general perception among insurance companies abroad, red car owners are more aggressive drivers and hence more prone to accidents.

Indian car insurance companies

 This concept was unheard of in India, however insurance companies here are now waking up to this idea. Hemant Kaul, CEO & Managing Director of Bajaj Allianz General Insurance Company  said, "The thinking in our company is the risk of accident comes out of the nature of the car and also the driver. Certain cars are seen as more risky than others. For example, red cars are typically driven by people between 18 and 24. So, the premium could be higher, as the accident rate is higher in this age group." 

He added that they are looking at charging premiums based on factors like age group, profession and behaviour type.

Red colour is associated with fast sports cars, high energy, raging bull and everything that ups the excitement levels. In foreign countries, car insurance premiums rates are also based on the owner’s lifestyle, profession and various other factors. Say for instance a person who is a doctor will be considered as a safe driver and may get additional discounts.Sudipta K Sen, Regional Director, South East Asia CEO & MD, SAS Institute (India) Pvt. Ltd,  said that a person buying a red car may possess the best of driving skills and this is where further profiling of the person takes place. So, based on the findings of different sophisticated analytical reports, private insurers are trying to build data sets that would enable them introduce customer profile-based pricing for private motor insurance.It appears that Indian insurance companies are now taking cues from the experience of foreign insurance companies. Looks like car insurance owners may have to rethink the colour of their car in an effort to save money on premiums.