There is a talk in the town that premium rates for non-life insurance companies are falling by at least 30-40 percent and the auto sector too is enjoying its benefits. While every car segment is enjoying this bounty, SUV owners have only a little to cheer.

Insurance companies have reduced tariff rates for SUVs only by 15-20 percent. Their reason is that generally SUVs are high risk vehicles and command higher claims. Their maintenance is less and they are used for rougher purposes. The general estimate is that for every Rs 100 collected as premium from a SUV, Rs 120 is paid as claim settlement.

SUVs are meant for tougher jobs than any other car model styling. They owners stand to pay more from their pockets than any other car in the same price segment. The higher premium rates are not going to deter consumers who have come to love the SUVs more as every year passes by. Their rough utility and good quality of comfort is liked by urban and rural masses.

These vehicles are here to stay and a little reduction in premium rates will go a long way in making them more popular among younger generation. Hence, those waiting to buy Toyota Innova or Mahindra Scorpio will also have to pay more.