Knowledge Centre

5 things which affect Your Car Insurance Premium

Car Insurance premium is the amount that you pay to your insurer for the cover that they provide you. Widely there are two types of car insurance third party liability cover and comprehensive car insurance cover. Third party liability is a mandatory cover which secures you against third party damages and comprehensive cover for car will protect against accidental damage  as well as any liability to a third party property, death of injury person loss.

Every motor insurance company has car insurance premium calculator which lets you calculate your vehicle premium on the basis of the below mentioned factors.

Age of Vehicle & Model

Age of the vehicle is one of the deciding factors as the premium rate is dependent on it. Similarly, if your vehicle is old the premium amount would be less as the IDV (Insured declared value) would be less as compared to a brand new vehicle.

Place of registration

Place of registration is basically the place where the vehicle is being registered with the concerned RTO authorities and premium rate is dependent on it.

Purpose of Vehicle

Purpose of the vehicle means whether the vehicle is being used for commercial or domestic purpose. Premium is different for a commercial vehicle as compared to that of a private vehicle.


IDV is the insured declared value, which is the total value of your vehicle and it is the maximum value which insured would get at the time of total loss, theft or burglary.


NCB is no claim bonus which is earned for your previous year policy if no claim has been made; you get a discount basis the NCB slab for the current policy. This discount will thus reduce your premium amount. This can help in decreasing car insurance premium

To calculate the premium of your car click here

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