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Classification of Cars: How Does It Affect Your Auto Insurance Policy?

Aniket Thakkar Aniket Thakkar 16 February 2017

Buying a car is one of the toughest decisions in life since you do not purchase it on a temporary basis. Buying a car is the most expensive thing that you will have to take care for a longer time duration.

Auto Insurance Policy

Before you end up going to a dealer and discuss the details of various cars, let’s have a look on their classifications:


These cars are quite popular amongst the people who initially had bikes but now have switched to cars to access the convenience. It is usually a two-seater car with an engine under 1 litre


These cars can easily accommodate five people, and they do not have an extended boot


The Sedan cars also cannot accommodate more than five people and they have the feature of extended boot, and they are pretty much longer than the hatchbacks


SUV also stands for Sports Utilities Vehicles. The SUVs can accommodate 5-7 people, and they are designed in such a way that they can run over the rough surfaces as well as off roads


Also known as multi-purpose vehicle, these cars act as people carriers and is quite big in size

Luxury Cars

They can be Sedan as well as SUV. Filthy rich people are the owners of these luxury cars. They have swanky features, high-class technology and are quite costly as well as comfortable

After the classification of the cars, the next major thing that we look up to is the insurance of these various sorts of cars

Why You Should Insure Your Car

The insurance companies provide you with the coverage in case your car is lost or damaged under any circumstances. The coverage is provided to the car owners under the following situations:

  1. Accident
  2. Theft
  3. Explosion
  4. Fire
  5. Lightening
  6. Riots
  7. Strikes
  8. Act of terrorism
  9. Natural calamities

Coverage is also provided in case of financial liability, which is caused due to the death or injury of the third party person. It can also be liable in event of the damage of the party

How Insurance of Different Cars Differs

Following factors determine the cost of insurance for the cars

  • Car make, car model, and variant to calculate the base premium, this information is imperative. The more expensive the car is, the more will be the base premium. For example, an SUV car will always have a higher premium than the Sedan car.

  • Manufactured Year The manufactured year of the car decides the premium as well.

  • CNG Cars A CNG car will have a higher premium than the petrol or a diesel car

Some Insurance Tips

If currently you plan to buy a top model car, before that, ask your insurance broker about the basic annual premium. He will have the full knowledge of the premium of a regular hatchback, sedan and SUV cars. If you plan to buy a second-hand car, please note that these old cars do not have a comprehensive cover, and you will have to pay much premium.

In cases where you have already taken various other sorts of insurance from a particular company, then do take the car insurance from this same company as they will offer you a discounted price for the next term. Get many quotes before going in for insurance because the best price can always be had.

So, purchase the insurance policies from the well-known insurance services providers. Every one of us understands that there a lot of hidden clauses in an insurance coverage. Thoroughly read the insurance documents before ending up signing them.

Read on to know how the classification of cars affect your insurance policy

Aniket Thakkar
Written by Aniket Thakkar
He lives off TV shows, movies, junk food, comics and sarcasm. When he is not working as a freelance imaginary friend to other beings like him, he works as VP of Marketing at Coverfox.