How Much is Car Insurance Cost Per Month in India?

5 min read

It is very important to know the car insurance cost in India so that you can find the affordable policy that you are looking for in this case.

You would already know that buying car insurance is mandatory in India. This is stated in the Motor Vehicles Act, 1988. As per the rules and regulations you need to buy third-party car insurance, at least over here. The term third-party car insurance means a policy that would pay for the damages that may happen to a car belonging to another person because of an accident. It would also offer coverage for the death or physical injury that you have caused to a third party in an accident.

If you know how much is car insurance each month it would help you plan your finances a lot better. Third-party coverage is also provided in the comprehensive car insurance plans along with own damages coverage. If you are driving without proper motor insurance in India, you can be sure that heavy fines would be levied on you and you would have to deal with stringent legal proceedings as well. Therefore it is so important that you renew your policy before the time to do so is up.

The factors that affect the cost of your insurance

As a car owner, it is your responsibility to make sure that you renew your car insurance plan at the right time or buy a new one when you purchase a car. It is you – the car owner – who would decide the kind of policy that you want to go with in this case. Please remember that your choice could determine whether you pay the average car insurance cost in India or any other amount. There are plenty of other factors that determine how much premium you are paying to insure your car.

If you want to know how much car insurance costs it is important to know the factors that affect the same. They may be enumerated as below:

  • Insurance declared value of the car
  • Type of policy that you have chosen
  • Age and type of car being insured
  • The engine capacity of the car
  • Location of the car

The term insurance declared value or IDV determines the present market value of your car. There are certain type of policies where you have to pay a higher amount such as the comprehensive policies. If the car model is expensive and if it is old you would have to pay more money to insure the same.

Please remember that the higher the cubic capacity of your car higher would be the car insurance cost in India for you. There are certain areas where you would have to pay a higher premium for your policy such as areas where the traffic is higher.

Read More: Driver and Passenger Cover in Car Insurance Policy

How much does car insurance cost per month in India?

Can I pay car insurance monthly? Well, this is a question that most people would like to know. Yes, you obviously can. But before that, you should have some idea of the costs of these products in India. As you would have seen from above, various factors come into play in these cases. Thus it is difficult to provide any precise figure. However, there are always ways in which you can assess how much you would have to pay for a policy by using tools such as premium calculators.

By using these tools you would easily be able to gain an idea of the car insurance rates in India. You would know how much you would have to pay to insure your car depending on your requirements. In fact, you can also use these tools to compare the premiums being asked for by various insurers out there. Thus, you can easily use them and choose the most appropriate car insurance policy for yourself in keeping with your budget as well as requirements in this case.

How to use the car insurance premium calculators?

Do you have to pay car insurance every month? If so, you should have a clear idea of how much money you would have to part with in this case. The best way to do so is to use tools such as car insurance premium calculators. It is quite easy to use them. All you would have to do is mention some details regarding your car and you would get details such as the premium and IDV of the car. As we have said already, you can easily use them to compare policies from various insurers and get the best policies for yourself.

Following are the details that you need to enter in this case:

  • Details regarding make, fuel type, model, and variant
  • The year when the car was bought
  • Ex-showroom price
  • Number of claims you have made
  • The city where the car was registered
  • Calculate the premium

It is based on these details that you would get the car insurance cost in India that would apply to you. You would also come to know the IDV of the car. IRDA (Insurance Regulatory Development Authority) has come up with a simple formula to calculate your car insurance premium. It is as follows:

premium = own damage premium – (no claim bonus + discounts) + liability premium

Conclusion

When you are buying a car insurance policy you are following the rules of the land. However, before that, you should also know the car insurance cost in India. You can go for a basic third-party policy or a comprehensive one depending on what you need in these cases. A lot in this case also depends on the amount of money that you are willing to pay in this regard. As we have said already, you can use the online calculators to find out how much money you would have to pay each month in such a policy.

You must compare all the options that you have in this regard so that you can choose the most appropriate option in terms of your capability and requirements.

Also Read: Will Your Car Insurance Policy Cover Engine Failure?

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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