Does Choosing Between Automatic and Geared Cars Impact Car Insurance

Does Choosing Between Automatic and Geared Cars Impact Car Insurance? While purchasing a car, one of the most important factors to consider is whether to get an automatic or manual car. While some people prefer automatic cars, others prefer manual geared cars. Regardless of the transmission type, all cars must have car insurance but, does the transmission type have an impact on the insurance premium? Read further to understand if this affects the car insurance:What Are the Types of Car Transmissions? Before understanding how car transmissions impact car insurance, it is important to first know about the car transmission types. There are two types of transmissions as mentioned below:

1. Manual Car Transmission 

As the name suggests, these types of cars require the driver to manually shift gears by operating a gear stick and clutch to propel the car forward or backword. While some people can comfortably drive manual cars, many find it challenging to coordinate too many things at once. Manual cars are a fuel-efficient and low-maintenance option when compared to automatic cars.

2. Automatic Car Transmission

A car with automatic car transmission has an onboard Electronic Control Unit (ECU) that guides the gearbox to move with very little effort from the driver. This type of transmission does not require manual intervention and it gives a hassle-free driving experience. While many new drivers prefer these cars, due to their ease, many like manual cars.Impact of Manual and Automatic Cars on Car InsuranceThe only difference between a manual and automatic car is the gearbox that is installed. Now, this is also the only aspect that affects the car insurance premium. The cost of maintaining and replacing an automatic gearbox is quite high and this poses as a great liability for the insurance company. Thus, it is possible that some insurers put a higher premium for automatic cars.Other Factors that Affect Car InsuranceThe car insurance premium is not just based on the transmission type but, also on other factors. Below are some of the other factors that affect the car insurance premium:

• Make and Model – The manufacturer, CC of the engine, type of vehicle, etc., affect the cost of insurance. For instance, luxury cars are very expensive and require high maintenance, thus the insurance premium increases

• Age – The value of a vehicle begins to depreciate from the day it is bought. The older a vehicle gets, the higher the liabilities. Thus, car insurers always consider the car’s age to calculate the insurance premium

• Location – The policyholder’s residence is a very important factor to determine the insurance premium. While those living in towns and certain districts only need to pay a low premium, those living in cities and hill stations are charged a higher premium

• Type of Policy – The type of insurance, i.e., third-party, own damage or comprehensive insurance affects the insurance premium. While third-party insurance is cheap, comprehensive insurance provides an overall coverage under one premium

Thus, while the transmission type affects the insurance premium, there are also other factors affect the premium. To save on car insurance premiums, buy car insurance online from Chola MS General Insurance Company. This is a quick and simple method where one can even avail discounts on the premium based on ongoing offers and schemes. This is a Partnered Post