7 hrs ago

How India’s Comprehensive Car Insurance Premium Is Determined

Comprehensive Insurance Price in India (New): What Decides Your Car Insurance Premium · livemint.com

Comprehensive car insurance has two main parts: third-party cover and own-damage cover.

Third-party cover helps pay for damage or injury caused to other people.

Own-damage cover helps protect your own car.

The price depends on the car’s value, age, model and engine size.

Extra features, called add-ons, can increase the price.

A history of safe driving and no claims can reduce the price through discounts.

Choosing a higher voluntary deductible can also lower the premium.

The article says drivers can compare options and calculate an estimated premium online.

Key facts

Comprehensive cover: Combines third-party insurance with own-damage cover.
Third-party premium: Standardised by IRDAI and based on engine capacity and fuel type.
Own-damage formula: IDV multiplied by the insurer’s tariff rate, plus add-ons, minus discounts.
IDV: The car’s current market value after depreciation; a higher IDV generally means a higher premium.
No Claim Bonus: A discount awarded for not filing a claim during the policy period.
Premium-increasing factors: Luxury or high-performance cars, selected add-ons and higher-risk locations can raise premiums.
Promoted insurer: TATA AIG offers customisation, cashless garages and online buying and renewal options.

livemint.com · 8 hrs ago