Factors Influencing SUV and Sedan Car Insurance Premiums In India


4 min read

There are many factors that impact the car insurance premium for a sedan or an SUV. These are both vehicles in the upper end of the market and may naturally command higher premiums than several other types of cars. However, have you wondered what are the factors which impact their car insurance premiums? Here’s taking a look!

Sedan vs SUV Insurance Rates – What Lies Behind Them? 

If you are thinking about the applicable car insurance premiums for SUVs and sedans, then you should follow the main trends of car insurance online or offline for that matter. Vehicle insurance depends on several parameters as you may already know. SUVs or Sports Utility Vehicles, as they are also known, are alternatives these days to sedans for most people. They offer a comfortable experience while commuting in the city and adequate horsepower and ground clearance for highway driving and even venturing onto bad or broken roads. SUVs are also becoming more affordable to own and maintain, thanks to the dawn of the compact SUV category and its huge impact in India.

At the same time, some compact and mini SUVs are sometimes equivalent to sedans in terms of space or even more cramped to say the least. You should always compare car insurance premiums for SUVs and sedans before deciding on the best possible vehicle for your needs. There are several sedan options available for customers these days. Right at the entry-level, we have compact sedans such as the Honda Amaze, Hyundai Xcent, Maruti Suzuki Dzire and Tata Tigor. Then there are midsized and luxurious sedans such as the Honda City, Hyundai Verna, Maruti Suzuki Ciaz and others. Then we have sedans which are a segment above including the Hyundai Elantra, Skoda Octavia and their counterparts. And finally, we move into the luxury sedan category with German and other marquee brands.

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In the SUV space, we have compact SUVs that rule the roost in the Indian market today, including the likes of the Maruti Suzuki Vitara Brezza, Renault Kiger, Tata Nexon, Hyundai Venue and others. Then we have slightly bigger SUVs such as the Kia Seltos, Hyundai Creta, Mahindra XUV300, Tata Harrier and others. We also have butch 7-seater SUVs including the Mahindra XUV500, XUV700, Scorpio, Tata Safari and Toyota Fortuner along with the premium Jeep Compass. The higher you move up, you go towards German and other foreign SUVs which cost a bomb and are preferred by the who’s who of the country!

There are multiple factors behind sedan car insurance premiums and those charged for SUV car insurance. Here’s taking a closer look at the same.

Car Insurance Premiums – 3 Factors are They Dependent Upon

Here are the core factors that you should remember while on the topic:

Vehicle Model

Cars have various sizes and shapes, each one with its own features, safety features, branding and other aspects. There are SUVs, sedans, hatchbacks, utility vehicles and more. SUVs or sports utility vehicles usually have off-road abilities and come with larger engines and 4×4 driving systems along with other equipment for this purpose. New SUVs are also smaller in terms of their dimensions and more affordable at the same time. They offer several cutting-edge features at similar price points as sedans as well. Sedans, on the other hand, have lower ground clearance in most cases while offering good features and a different body type altogether. The make and model determine insurance premiums greatly.

Manufacturing Year

The age of the car is based on the year of manufacturing. The vehicle age is one crucial factor for determining the rate of the insurance. This is due to the aspect known as depreciation. With increasing age of a car, the wear and tear also goes up accordingly. Since market value is vital for working out the cost of insurance, premiums are higher in case of newer models.

Energy Sources

Gasoline-based vehicles are comparatively affordable than diesel vehicles. Hence, the insurance cost is lower for petrol models. Diesel models have slightly costlier insurance. Insuring a petrol SUV will be more affordable than a diesel SUV. The same goes true for sedans. Installing any new LPG/CNG kit in the vehicle may lead to higher insurance charges as well.

SUV prices have now come down to more affordable levels in almost every category for customers in recent years. With both sedans and SUVs finding favor with distinct categories of buyers, the insurance premium should be carefully compared before taking the plunge. The sticker prices of full-sized SUVs are higher, impacting their overall insurance premiums greatly. The same is true for luxury sedans as well. High-end cars will naturally come with increased costs of insurance. At the same time, compact SUVs and sedans are comparatively affordable in terms of their insurance costs. Do your homework thoroughly before your purchase.

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Mar 31, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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