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When purchasing or renewing car insurance, there are a variety of plans & insurers available. However, to choose the right policy, there are certain factors you should keep in mind. In India, car insurance prices fluctuate every year and are based on regulatory guidelines, type of vehicle, and use. This article explores the latest car insurance premium prices in India for 2025 to help you calculate your premium amount.
The IRDAI decides the third party car insurance premium rates based on a vehicle's engine capacity or electric motor capacity. Whereas, the own-damage (OD) car insurance premium rates are fixed by insurance companies. Here is the table mentioning 3rd party insurance premiums for private cars for both 1-year & 3-year policies:
Type of Vehicle | Engine/Battery Capacity | 1-Year Premium Price | 3-Year Premium Price |
Private Cars | <1000 cc | Rs. 2,094 | Rs. 6,521 |
1000 cc-1500 cc | Rs. 3,416 | Rs. 10,640 | |
>1500 cc | Rs. 7,897 | Rs. 24,596 | |
Electric Cars | <30 kWh | Rs. 1,780 | Rs. 5,543 |
30-65 kWh | Rs. 2,904 | Rs. 9,044 | |
>65 kWh | Rs. 6,712 | Rs. 20,907 |
Note: Third-party car insurance premium rates, which are decided by IRDAI, are subject to change. For the most recent premium prices, refer to IRDAI's official website.
Unlike third party insurance premiums, the rates for own damage car insurance policies are decided by insurance companies and thus they differentiate from insurer to insurer.
The own-damage premium rates are calculated on the basis of Insured Declared Value (IDV), Zone of vehicle operation, and the cubic capacity of the vehicle.
Here is the price list for own damage insurance plans, which vary by Geographical Zones (area of vehicle registration). Have a look:
Age of Car | Not Exceeding 1000cc | Exceeding 1000cc and Not Exceeding 1500cc | Exceeding 1500cc |
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 |
Age of Car | Not Exceeding 1000cc | Exceeding 1000cc and Not Exceeding 1500cc | Exceeding 150 |
Not Exceeding 5 Years | 3.039% 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 |
To know how insurers calculate car insurance premiums, here's the simple formula:
Comprehensive Car Insurance Premium = Own Damage Premium - (No-Claim Bonus + discounts) + Third Party Liability Premium
Have a look at the following example to understand car insurance premium calculation for a brand new TATA Curvv (base model, petrol variant):
Factors | Premium Price |
Ex Showroom Rate (pan India) | Rs. 10,00,000 |
Insured Declared Value | Rs. 9,50,000 |
1-Year Own Damage Premium- A | Rs. 31,204 |
3-Year Third Party Premium- B | Rs. 10,640 |
Other Discounts | Rs. 28,382 |
Bundled Policy Premium: C (A+B) | Rs. 13,462 |
GST (18%) | Rs. 2,423 |
Total Premium for 3 Years | Rs. 15,885 |
*Disclaimer: The above data is for a Bundled Policy (1-Year OD + 3-Year TP) as of 30-06-2025 for a brand new Tata Curvv Smart registered under DL1 RTO.
Have a look at some important factors that affect car insurance premium rates:
Here are some of the essential add-ons in car insurance, along with their estimated prices, which vary by insurance companies. Have a look-
Car Insurance Add-On | Prices (Indicative) |
Zero Depreciation Cover | Rs. 1,000 - 3,500 |
Engine Protection Cover | Rs. 500 - 1,200 |
Roadside Assistance Cover | Rs. 150 - 500 |
NCB Protector Cover | Rs. 400 - 800 |
*Disclaimer: The prices mentioned above are indicative and vary by insurers. Always refer to the insurer's official website for the actual car insurance add-on costs for your vehicle.
To save on your car insurance premium, follow these helpful tips:
It's never necessary that a cheaper car insurance policy would be the best coverage for your car. So, when purchasing your four-wheeler policy, keep these factors in mind.
Keeping yourself updated on the car insurance premium price list helps us make an informed choice when buying/renewing a policy. Remember to use an online car insurance premium calculator to compare quotes on PolicyBazaar.com and choose the right policy that best matches your coverage requirements and budget.
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*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
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*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
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