There’s absolutely no doubt that Motor Insurance is a must for every motor vehicle owner. It not only protects your car in the event of any damage or disasters, it also protects you. The car insurance premium is calculated by using your personal information and company claim data, car insurance companies use their own methods to make an educated guess on how likely you are to file a claim. The riskier you appear, the more you will pay for car insurance. The safer you seem, the less you'll pay.

But the question remains- how much is it going to cost you? 

The premium you pay to receive insurance cover differs from car to car, owner to owner and each factor is weighed differently. Here are the important factors that come into consideration when the figure is being decided.


Purpose of the Vehicle

Car insurance is available for personal as well as commercial vehicles. If you are using your vehicle commercially, insurance companies are bound to charge you a higher insurance premium, given that it’s a source of income.

Model of the Vehicle

The amount of premium you pay depends largely on its Insured Declared Value, which is a new way of saying “market value”. Thus, the more expensive your car, the higher the premium you pay. It’s thus safe to assume that imported brands and bigger cars will charge more premium than hatchbacks. Similarly, for Fuel Type, premium is generally higher for diesel vehicles.

In addition, the year of manufacture and the date of registration of the vehicle will also be taken into account. If a vehicle comes with rare or expensive spare parts, that will increase its insurance premium too.

Safety Devices

Modern cars are built to ensure the safety of all passengers. They come with state-of-the-art safety features like airbags, advanced braking systems, robust locks and anti-theft devices. Thus, some insurers increase premiums for cars that are more susceptible to damage, occupant injury, or theft, and lower rates for those that fare better than the norm.

You can avail a discount of up to 2.5% on your premium if your car is inherently safe-provided and its features are included in the list approved by Automobile Research Association of India (ARAI)- so it’s advisable you do some research before you buy a Motor Insurance Online.

Insurance Zones

Where you live and the location your car is registered at also affects the amount of motor insurance premium you pay. ‘Insurance zones’ are thus created by insurers according to a vehicle's vulnerability to damage or loss.

Due to higher rates of vandalism, theft, and accidents, urban drivers pay more for car insurance than do those in small towns or rural areas. To check your zone click here - Bharti AXA

And many more…

While the above factors are important, what Indian insurers consider before deciding car insurance premium, there are a number of additional factors that are likely to become important soon, which include the distance your car has travelled, your credit history, whether or not it’s regularly serviced by an authorized service station, and even whether you, as an individual, have a history of getting into car accidents.


Choosing which insurer to purchase a car insurance policy from is a decision that can’t be taken lightly. Here are the factors you must evaluate before deciding upon a particular insurer.

Premium: For insurance policies, the lesser premium you pay, the smaller the amount you can claim.

Essential riders: There are 7 major car insurance riders every car owner must consider to include in their insurance plan. These riders provide added yet essential benefits at an additional cost. These include:

The personal accident cover, which financially safeguards you against unforeseen events causing bodily harm, such as Accidental Death or Permanent Total Disability arising due to a road accident;

Rental reimbursement rider, which covers the cost of renting a car when your own vehicle is being repaired;

Road side assistance rider, which offers facilities like fuel refilling, battery jump starting, lost key replacement, legal advice, etc.

Check reputation and financial standing: You need to make sure your company can pay your damages when required by going through online reviews, news, speaking to friends and relatives etc.

Convenience: The insurer you opt for must have a well-established digital presence so that you can file claims online.

Cashless garage network: Some advanced insurers offer a cashless garage facility also.

Customer service: Beyond getting yourself an insurance policy, it is equally important that how responsive your insurer is to any issues or questions you may have.

Bottom line

In the end, I would like to conclude by saying that, Drive safe. Not only can that protect your life, it can even save you money. I would be delighted if you share your experience after visiting the webpage of Bharti AXA and if you have further suggestions or information in this respect.


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