How Much Does Your Car Insurance Cost Per Month in India?

Looking for an affordable car insurance policy but confused about how much will it cost you monthly? Well, that is not difficult to find out anymore. In this article, we will tell you how much will your car insurance cost in India and what factors will influence your insurance rates so that you can make a wise purchasing decision.

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New India Assurance

Cashless Garages

253

Plan type

Comprehensive

Starting from

₹ 2,727

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  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

National Insurance

Cashless Garages

268

Plan type

Comprehensive

Starting from

₹ 2,757

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  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

Bajaj Allianz

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1024

Plan type

Comprehensive

Starting from

₹ 2,868

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  • Spot Claims Upto Rs. 30,000
  • Repair service at select cashless garages

DIGIT

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Repair Anywhere

Plan type

Comprehensive

Starting from

₹ 2,962

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  • 6-Month Repair Warranty
  • Advance claim payment
  • Free Pick-up & Drop

Oriental Insurance

Cashless Garages

258

Plan type

Comprehensive

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₹ 3,005

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DIGIT

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Repair Anywhere

Plan type

Third Party

Starting from

₹ 2,094

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  • Covers damages to third party property
  • Covers damages to third party person

Bajaj Allianz

Cashless Garages

1024

Plan type

Third Party

Starting from

₹ 2,094

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  • Covers damages to third party property
  • Covers damages to third party person

Oriental Insurance

Cashless Garages

258

Plan type

Third Party

Starting from

₹ 2,094

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Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

National Insurance

Cashless Garages

268

Plan type

Third Party

Starting from

₹ 2,094

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Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

New India Assurance

Cashless Garages

253

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person
See more plans

Above-mentioned prices are for a 7-year-old Maruti WAGON R AVANCE LXI (998 CC) registered in Gurgaon and 15 days before expiry of previous policy

Purchasing Car Insurance is Mandatory in India

As per the Motor Vehicles Act, 1988, it is compulsory for a car owner to buy a third-party insurance cover for his/her car. A third-party insurance policy covers a car against damages that may arise out of a third party in case of an unforeseen accident. It also covers third-party’s physical injuries or death due to the accident caused by the car owner. Third-party insurance cover is also available under comprehensive insurance in addition to own damages cover.

If a car owner does not have a valid motor insurance policy in India, he/she will be subject to legal proceedings and heavy fines. Therefore, you must renew your insurance policy before its expiry date. If you fail to do so, it will become a legal offence. 

Major Factors Affecting Car Insurance Cost 

It’s the sole responsibility of a car owner to renew his/her existing policy or buy new insurance online for his/her car. It’s his/her choice to go with third-party insurance or a comprehensive one. However, the rates of insurance policy may vary based on many factors. So if you are planning to purchase an insurance policy for your car, you must be aware of the factors affecting its costs before buying. Take a look at these factors below:

Insured Declared Value

IDV or Insured Declared Value is the current market value of the car. It is the maximum claim amount that your insurer will pay in case of accident, theft or damages to your car. The higher is the IDV, the higher will be the insurance premium.

Type of Motor Insurance

The cost of insurance also depends on the type of insurance coverage opted by the car owner. Since comprehensive car insurance offers wider coverage, its cost of insurance is higher. 

Type & Age of the Vehicle 

The age and model of your vehicle are also considered while determining the cost of motor insurance. For instance, if you are getting an expensive car insured, its cost of insurance will be higher. Similarly, the older the car is, the lesser will be its insurance premium. 

Type of Engine Capacity

The rate of premium is also decided by considering the capacity of the vehicle's engine. The higher is the cubic capacity of your car engine, the more will be the cost of insurance that you will have to pay. 

Location of the Car

Another major factor is the geographical location where you live and have purchased your car insurance. For instance, if you are living in an urban area where traffic is high, you may have to pay a higher insurance premium.

Some other factors that affect four-wheeler insurance costs in India include installing security devices, No Claim Bonus, car modifications and discounts. 

Car Insurance Cost Per Month in India

There is no fixed insurance cost per month for all four-wheelers owners in India. However, the insurance costs for a month in India is calculated based on the above-mentioned factors. Based on these factors, your insurance company will charge you a premium for your policy.

However, before buying a four-wheeler insurance policy, you can yourself assess your insurance cost per month using a car insurance premium calculator. Using a car insurance calculator, you can easily calculate the premium for an insurance policy based on your requirements. 

A car insurance premium calculator is an online tool that you can use to calculate your premium and use it to compare the premiums of policy by different insurance companies. You can use this calculator to choose the best insurance policy for your four-wheeler as per your requirements and budget. 

How to Use Car Insurance Premium Calculator?

Using a car insurance premium calculator is very easy. All you need to do is mention the required information about your car and you will get details like IDV as well as the premium that you would have to pay for the chosen policy. Moreover, you can view and compare policies from other insurance companies to find the right policy for your car. 

Here is how you can use a car insurance calculator:

  1. Enter car make, model, fuel type and variant details
  2. Enter ex-showroom price
  3. Enter the car registration city
  4. Enter the year of the vehicle purchase
  5. Select whether you have made a claim
  6. Select the calculate premium option

Based on your details, you will get your car's IDV and the premium, which you will have to pay.

The Insurance Regulatory and Development Authority (IRDA) of India has fixed a simple formula to calculate motor insurance premiums. This formula is Premium= Own Damage Premium- (No claim bonus+ discounts) + Liability Premium. You can also use this formula to get an idea of how is your insurance cost calculated.

Summing It Up

Buying a motor insurance policy is essential to abide by the motor laws of the country. You can either choose third-party insurance or comprehensive insurance based on the coverage requirement and the cost of insurance that you are willing to pay. You can use the car insurance premium calculator online to know the car insurance cost per month. Irrespective of which type of policy you choose, it is essential to compare different insurance policies online and then purchase the one that fulfils all your needs. 

Written By: PolicyBazaar - Updated: 14 January 2022
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