Price List of Car Insurance In India

If you are looking for amazing insurance deals for your car, you have come to the right place. There are many options available in the market when you plan on purchasing a car insurance policy. Here we will be telling you about how you can choose the right insurance plan that suits your requirements by comparing different plans along with the factors that determine the insurance prices in India.

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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

Vehicle Insurance Price List

Third-Party insurance premium amount is fixed by the IRDAI (Insurance Regulatory and Development Authority) whereas the own Damage premium rates are fixed by concerned Insurance companies. IRDAI fixed rates are subject to change concerning the claim amount and various other factors.

The car insurance price list includes all three, first-party premium, third party premium and own damage.

The price list can vary each year depending on both third-party and own damage premiums. Even though the first party is constant, the changes in the other two plans may change the price list altogether of the car insurance premium.

Price List for Third Party Insurance

The rates for this type are fixed by IRDAI based on GWP collected and the claims for that year and the change solely depends on the last decision from IRDAI.

The new price list for third-party insurance plans is as follows:

Private Cars

Existing Rates FY 2019-20 (INR)

Proposed Rates FY2020-21 (INR)

Less Than 1000cc

2,072

2,182

More than 1000cc but less than 1500cc

3,221

3,383

More than 1500cc

7,890

7,890

The visible 5% change in the proposed third-party premium is because of the claim settlement ratio. In case of any accidents, the given claims are taken to court and the honourable court awards the claim amount depending on the earning and age of the individual. Hence the maximum amount of premium collected by the insurance companies ends up in third-party settlements.

Price List for Own Damage insurance

The insurance companies decide the rates for the Own Damage premium and hence differentiate from company to company.

The own-damage premium rates are calculated on the basis of Insured Declared Value, Zone of operation, and the cubic capacity of the vehicle.

The premium price list of own damage in the car insurance is mentioned in the below table as mentioned in the Indian Motor Tariff:

Zone A

Age of Car

Not Exceeding 1000cc

Exceeding 1000cc and Not Exceeding 1500cc

Exceeding 150

Not Exceeding 5 Years

2.039% on IDV

3.191% on IDV

3.343% on IDV

Exceeding 5 Years but not Exceeding 10 Years

3.191% on IDV

3.351% on IDV

3.510% on IDV

Exceeding 10 Years

3.267% on IDV

3.430% on IDV

3.594% on IDV

Zone B

Age of Car

Not Exceeding 1000cc

Exceeding 1000cc and Not Exceeding 1500cc

Exceeding 150

Not Exceeding 5 Years

3.127% on IDV

3.283% on IDV

3.440% on IDV

Exceeding 5 Years but not Exceeding 10 Years

3.283% on IDV

3.447% on IDV

3.612% on IDV

Exceeding 10 Years

3.362% on IDV

3.529% on IDV

3.698% on IDV

The Calculation for Car Insurance Price

An insurance company will calculate your premium based on your age, the age of the car, residence, type of coverage you want, and if you have had an accident in the last 5 years or not.

Car Insurance List Coverage

Car Insurance Coverage

Amount in INR

Third-Party

5 Lakh

Own damage for death and disability

3 Lakh

Third-party fire and theft

10 Lakh

Factors affecting the price list

  • IDV (insured declared value) of the vehicle
  • Type and Age of the vehicle
  • Geographical zone
  • Age and gender of the owner-driver
  • Cubic capacity of the engine
  • Fuel type
  • The profession of the owner
  • Voluntary deductible
  • No Claim Bonus (NCB)
  • Anti-theft device installation

How to Reduce Car insurance Premium?

If you are looking for good affordable rates for your car insurance premium here are a few tips that might help you reduce the rates.

Insured Declared Value: Getting a car insurance policy, the concerned company calculates the highest claim value i.e. IDV. However, in exchange for the decreased cost of the premium, you can get reduced IDV. But keep in mind that lesser IDV results in lower reimbursement if and when a theft or damage occurs to the vehicle.

No Claim Bonus: This means you get a discount on your premium after a claim-free year of your policy. This can also reach up to 50% after 3 claim-free years consecutively. But even a single claim can get NCB back to null. Hence avoid making claims for minor damages.

Additional Security Measures: If any kind of additional security device is installed like an anti-theft alarm or security car cameras, it automatically reduces possible damage risks. Hence, less liability of damage, lesser premium costs.

Increase Voluntary Deductibles: This option basically means that a policyholder can voluntarily pay a part of the claim amount while the insurance company can pay the rest. Hence when a claim is raised this amount is deducted. Higher the proportion, the more reduced premium cost.

But Can a Cheaper Plan Be the Best?

It’s never necessary that the cheapest premium would be the best fit for your car. So when purchasing your insurance plan, keep these factors in mind.

Customer support: There are different types of insurers. Some give customer care 24/7 but some may assist only at specific times.

Claim Settlement Ratio: The ratio between the percentage of claims settled by the insurer by the total number of claims in a financial year. Hence always check the insurers’ claim settlement ratio.

Add Ons: Add-ons are extra covers that increase the coverage of a comprehensive car insurance policy and own damage insurance policy.

Ease of Buy/Renewal: Always check if the process of purchase or renewal is easy, paperless and at your convenience.

Conclusion

It is always suggested by the insurance industry experts to purchase a car insurance policy online so that you can look for several options available online and then compare them, calculate the premium using an online car insurance premium calculator and then purchase the one that fits your requirement at the comfort of your home.

Written By: PolicyBazaar - Updated: 04 March 2022
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