What is loading? What is the charge for loading?

Loading is an additional premium to be paid at the time of renewal of policy when the company feels that the insured is prone to risks. The additional premium helps the insurer cover losses which may be higher than what is anticipated.

In general, a vehicle which is more than 4 year old will be subject to 5% loading, and vehicle with age 7 and above will be loaded with additional 10%. Vehicles that are aged more than 10 years are subject to maximum 15% by some well-known insurers.

The loading charge is due to the anticipation that older vehicles are more prone to risks of accidents, damages, and other wear and tear.