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Auto Insurance New
Monday 28 January 2008
How cheap will Nano insurance be?
Monday 28 January 2008
| With the launch of the Tata
Nano, the next debate has already started - How cheap will its insurance be? Historically, insurance tariffs have been set with respect to the value of the car and its cubic capacity. Without any data about the Nano, motor insurers will have to revert to this method. That is, unless Tata Motors divulge how cheap or dear spares will be to insurers. The good news is that
insurance for the small car could be available for as low as Rs 2,000 and could
fall further if Tata assures insurers of the availability of low-cost spares. On the other hand, funding
the Nano could be more expensive. Lenders say that a majority of potential Nano
buyers could be moving up from two-wheelers and hobby customers. Historically, this
profile attracts higher interest rates on funding. |
