What goes into a car insurance premium
- Own-damage (OD) — based on IDV, engine capacity, vehicle age and city zone. Insurers price this themselves; the old India Motor Tariff rates are a reference point, and online quotes are usually well below them.
- Third-party (TP) — fixed by the Government by engine capacity (or motor power for EVs). Same with every insurer.
- PA cover — ₹15 lakh personal accident cover for the owner-driver, compulsory unless you already have equivalent cover.
- GST — 18% on the whole premium.
Third-party base premiums for cars
| Vehicle | Annual TP premium |
|---|---|
| Private car up to 1000cc | ₹2,094 |
| Private car 1001–1500cc | ₹3,416 |
| Private car above 1500cc | ₹7,897 |
| Electric car up to 30 kW | ₹1,780 |
| Electric car 30–65 kW | ₹2,904 |
| Electric car above 65 kW | ₹6,712 |
Base rates under the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022, before 18% GST. Rates are notified by the Government in consultation with IRDAI and can change.
How to make the estimate match your quote
Enter the IDV from a quote you have received, then move the “insurer discount on OD tariff” slider until the own-damage figure matches. From then on you can test changes — a different IDV, a voluntary deductible, removing an add-on — and see their effect on the total.
This is an estimate Insurers price own-damage cover using their own data on the model, city, claim history and more. Use this tool to understand and compare, then buy on the insurer’s actual quote and policy wording.
Premium FAQs
Why is my premium higher than last year even though IDV fell?
Common reasons are losing NCB after a claim, adding add-ons, a change in the insurer’s OD pricing or a revision in third-party rates. Compare the OD, TP and add-on lines separately.
Does a lower IDV always reduce the premium a lot?
It reduces only the own-damage part. Third-party, PA cover and flat-priced add-ons do not change, so the saving is smaller than the IDV cut suggests — while your theft and total-loss payout falls by the full amount.
Which cities are Zone A?
Under the motor tariff, Zone A covers Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune. The rest of India is Zone B, with slightly lower reference rates.
Related: How IDV affects premium · Policy types compared