Know How Car Models Affect Car Insurance Premium

If you buy a car, you should know that every car owner must cover their vehicle under an appropriate insurance policy. In India, you have two options to become a car owner. One is to buy a brand new car, and second, you can buy a second-hand car. In the case of a second-hand vehicle, buy third-party car insurance. This car insurance policy covers any third-party liabilities arising from property damage or injury to the third party. However, comprehensive insurance provides the user a much broader coverage that protects your car’s damages sustained by accidents, natural disasters or theft, man-made calamities, and many more. One should have the freedom to buy and opt for car insurance renewal as per their suitability. But whatever the case may be, one should ensure that the car insurance consists of third-party Insurance coverage.

How can the model of the car affect the insurance premium?

The value of the car has a direct impact on the premium of the insurance policy. If you buy a higher value or exclusive model, you need to pay a higher cost on the insurance premium. There are reasons behind this disparity. If, in any case, your car gets damaged, the cost of replacing or repairing the various parts of the vehicle would be higher than the cars that are priced much lower. Due to that, the motor insurance would have to pay more money for repairing your vehicle. It is what makes the insurer charge higher premiums for expensive cars and lowers for any affordable vehicles.

For instance, if you own a hatchback car, you need to pay less premium on car insurance renewal and higher in the case of an SUV. Not to mention, third-party insurance offers less coverage than any comprehensive car insurance policy. Therefore apart from the car model, the type of insurance also affects the amount of insurance premium you are paying for your vehicle.

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The expensive cars are more likely to get the attention of thieves and criminals. If, in any case, your vehicle is stolen, then the insurance needs to pay a higher amount to replace the car as expensive cars are known to be a liability for every motor insurer.

The model of the car also impacts the different types of car insurance policies that you can choose. Although according to motor law, every vehicle must have a third party insurance cover. However, some insurers may ask the car owner to go for a comprehensive car insurance policy on car insurance renewal. Therefore the car insurance premium also depends on the model and make of the car.


Everyone in India wants to buy an expensive high-end car. But these costly high-end cars suffer from higher car insurance. Not only that, if you’re going to go for a car insurance renewal, you need to pay an extra premium since the value of your car is excessive. Therefore before buying a car, one must undoubtedly compare various insurance plans to find the optimum insurance for your vehicle. Make sure that the insurance that you have chosen is affordable and comes with sufficient IDV.