Is there a discount on Car Insurance if I install an anti-theft device?

Yes. Installing an ARAI-certified anti-theft device can get you a 2.5% discount on the OD component of premium, subject to maximum of Rs. 500.

Will car modifications increase the premium?

Yes, adding accessories or making modifications increases the car’s IDV, which increases the overall premium amount.

How is car insurance premium calculated?

Here’s the formula:

Total Premium = Own Damage Premium – (NCB + Discounts) + Third-Party Liability Premium + Add-on Premium + GST

• Own Damage Premium: Based on your car’s IDV, age, make, and model.
• No Claim Bonus (NCB) & Discounts: Bonus discount earned on claim-free years or by opting for voluntary deductibles.
• Third-Party Premium: Fixed by IRDAI, calculated based on engine capacity (cc).
• Add-on Premium: On payment of additional premium you can opt for covers like Engine Protect Plus, Zero Depreciation, etc

What factors affect your Car Insurance premium?

• Insured Declared Value (IDV): The Higher the IDV, the higher the premium.
• Vehicle Make & Engine Size: Luxury cars and bigger engines cost more to insure.
• Age of the Car: New cars have higher premiums; older cars benefit from depreciation.
• Location: Urban or accident-prone areas attract higher premiums than rural zones.
• Past Claims: No-Claim Bonus can reduce your premium at renewal, but only if you’ve had a claim-free year.