How Does Car Type Affect Car Insurance Policy?

There are different types of cars available in the market. There are common car types, Hatchback, Sedan, SUV, and MUV. You purchase a car according to your choice and budget. So, when you purchase a car of your choice it is also mandatory to cover it with a third-party liability car insurance policy as per the Motor Vehicle Act, 1988. It is also important to get your car registered in the Regional Transport Office since it is not legal to drive an unregistered car.

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Nowadays it is very easy to purchase a car insurance policy. Thanks to the internet and digitization in the country, now people can purchase insurance policies online. However, we are here to talk about how your car type can affect the car insurance policy. There are several other car types apart from the common mentioned in the above paragraph.

Impact of Car Types on Your Car Insurance

So let us tell you how would a particular car type affects your car insurance policy.


Since hatchbacks are one of the most purchased and affordable cars in the market. A hatchback is smaller in size and at least 5 people can sit in this car type. Manufacturing companies have started making premium hatchbacks with all the advanced interiors. Hatchback usually has 4 entry doors and a trunk door.

However, hatchbacks are affordable and a person with a budget of Rs. 6-10 Lakh can purchase it. The on-road price and the safety features of a car play a huge role in the premium rates. Out of all other car types the premium rates of a hatchback are lower.


People with a budget over Rs. 10 Lakh car purchase a Sedan. Sedans are most popular among buyers and car enthusiasts as they look stylish and have more powerful engines. Just like a hatchback, 5 people can sit inside a sedan comfortably.

Unlike hatchbacks, Sedans have an extended trunk at the back that provides more space for keeping luggage when you decide to go on a trip. The boot space in the sedans is bigger than the hatchbacks. Since Sedans are costlier and have better safety measures like 4-5 airbags depending on the variant. The premium rate of the insurance policy for a sedan is higher than the hatchback.


SUVs and MUVs are bigger than any other car type. SUVs and MUVs are costlier than hatchbacks and sedans. People with a rather large family go for SUVs and MUVs as they provide more seating space than any other car type. A SUV and MUV have seating space for 6-8 people.

Since SUVs and MUVs have bigger tyres and ground clearance is better so they can be driven on tough terrains and bumpy roads. SUVs are designed to dominate the road whether it is in the city, on highways as well as off roads. Obviously, the boot space is bigger than any other car type and makes you feel superior on the road. The insurance plan for SUV or MUV would rather cost more than any other car type due to its market price, comfortability and safety features.


The convertibles are one of the costliest cars in the market. Usually, big car companies like BMW, Audi, Jaguar, etc. makes convertible cars. Convertible cars are made for upper-class people and come with 2 and 4 seating spaces and only 2 entry doors. The roof of the convertible is made in such a way that it folds back with a push of a button in the car.

However, it is not always possible to drive an open-roof car due to high pollution. Also, you never know when it would start raining and when the sun is on the top of the head. The convertibles usually come in an on-road price range above Rs. 40 lakh hence the premium rates of the car insurance policy you plan to purchase would be higher. If you are planning to purchase a 4-seater convertible then you have several options available in the market. The convertibles available in the market are Mini Cooper, Mercedes Benz C-class, Audi A3, etc.

Cross-over Cars

Cross-over car in India was launched by Maruti Suzuki. They launched an S-Cross that was like a mixture of a Hatchback and SUV. The on-road price of this car is around Rs. 8-12 Lakh which was affordable and liked by many buyers. This car type has got premium interiors and safety features and a more powerful engine than a hatchback. This car insurance premium would be almost the same as a hatchback’s insurance premium rates.


When you are willing to purchase any car then you can always look it up online and check which car insurance policy would be the best for your car. You can purchase a policy online after comparing them and even calculate the premium rates of the plan. It is highly recommended by the insurance experts as purchasing a car insurance policy is much more cost-effective than purchasing it offline. As your car type and its one-road price would play a huge role in your premium rate so you can check that as well by talking to the customer executive of your insurance company.

Written By: PolicyBazaar - Updated: 30 July 2021
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