How Car Make and Model Affect Insurance Rates
19 June,2025
Updated:19 June,2025
0 min read
share
Copied
24Factors like driving history and claim history are frequently mentioned when discussing Car Insurance premiums. However, the brand and model of your vehicle are among the most important factors that affect your Car Insurance cost.
Regardless of whether you drive a fancy sedan or a low-priced hatchback, insurers make use of this information to determine the possible cost and risk of insurance for your car. Let's examine how it works and why it's crucial for Indian car owners.
What Do ‘Make’ and ‘Model’ Mean?
A car's make refers to its manufacturer or brand, such as Toyota, Hyundai, or Tata. The model is a specific version of that brand, such as Tiago, i20, or Fortuner. Not only are these characteristics used for showroom classification, but they also help insurers assess the potential risk and expense of insuring that specific car.
The Car Insurance make and model influence several parameters including:
- Market price and repair costs
- Safety features and crash-test ratings
- Theft probability
- Popularity and claim history
For instance, a Maruti Suzuki Swift with easy-to-source parts and low repair costs will typically have a lower premium than a luxury vehicle like the BMW X1.
Factors Influencing Insurance Rates
An insurer does not simply look at the brand of the vehicle and provide a quotation. They take into account a variety of Car Insurance considerations, including:
| Factor | Description |
| Ex-Showroom Price | Higher-priced cars lead to higher Insured Declared Value (IDV), increasing premiums. |
| Fuel Type | Diesel or CNG variants may attract a slightly higher premium due to repair and maintenance costs. |
| Engine Capacity (cc) | Cars with higher engine power generally have a higher risk exposure, affecting premiums. |
| Safety Ratings & Features | Cars equipped with anti-theft devices certified by the Automotive Research Association of India (ARAI) can qualify for discounts on Car Insurance premium. |
| Repair Costs & Spare Availability | Premium models with imported parts often lead to higher insurance claims and thus higher premiums. |
| Theft Risk | Models frequently targeted for theft (e.g., older models without immobilisers) are tagged higher risk. |
These factors together shape the Car Insurance make and model calculations done by insurers.
Key Takeaways
Here are some must-know points when it comes to car model insurance:
- High-performance or luxury vehicles usually carry higher Car Insurance rates.
- Models equipped with ARAI-certified anti-theft devices may be eligible for lower premiums.
- Spare parts availability and ease of repair significantly impact insurance pricing.
- Heavily modified or imported vehicles are considered higher risk.
- Budget models with basic features usually have lower insurance costs.
Understanding Insurance Pricing: Examples of High and Low Insurance Rate Cars
In India, your Car Insurance premium includes Third-Party Liability (regulated by IRDAI) and Own Damage cover (provided by insurers).
Here's a breakdown:
IRDAI Third-Party Liability premium rates (effective April 1, 2022)
| Engine Capacity (cc) | Third-Party Premium (Annual) |
| Not exceeding 1000 cc | ₹2,094 |
| 1000 – 1500 cc | ₹3,416 |
| Above 1500 cc | ₹7,897 |
These are fixed across all insurance providers.
Tips for Lowering Insurance Costs
Even with a costlier car model, you can manage your Car Insurance rates smartly:
- Use No Claim Bonus (NCB): Earn up to 50% discount on premiums with consecutive claim-free years.
- Install anti-theft devices: ARAI-approved anti-theft systems can earn discounts.
- Choose higher deductibles: Voluntarily bearing a small part of the claim reduces premiums.
- Avoid fancy modifications: They raise risk and premium.
- Shop and compare: Use trusted platforms or go directly to insurers.
Conclusion
Your Car Insurance premium is directly related to the make and model of your vehicle. Before providing a quote, insurance companies carefully consider several factors, including repair costs, theft rates, and safety features. When purchasing a car, especially in India, it's a good idea to weigh the insurance implications against the car's purchase price.
At Shriram Car Insurance, we get it. We recognise that each car is different, and that your coverage requirements are no exception. For this reason, Shriram Car Insurance provides:
- Personalised plans according to the make and model of your car
- Affordably priced premiums that fit your budget
- Add-on covers for Zero Depreciation, Roadside Assistance, Engine Protection, and more
- Hassle-free claim procedure with dedicated customer service
- An extensive cashless garage network
- Flexible IDV options to safeguard the value of your investment
We've got you covered, whether you're insuring an economical hatchback or a fancy SUV. Discover our plans today to enjoy seamless protection. Drive insured. Drive worry-free.
FAQs
1. Does the car’s make and model really affect Car Insurance premiums?
Yes. The make and model affect the premium in a number of ways, including replacement costs and theft risk.
2. Do electric cars cost less to insure?
Not always. Although some plans provide incentives for electric vehicles, premiums may increase due to the costs of batteries and the limited availability of spare parts.
3. Can a safer car get lower Car Insurance rates?
Yes. Cars with ARAI-certified anti-theft devices may be eligible for lower Car Insurance premiums.
4. Is Third-Party Liability Insurance enough for all cars?
No. While mandatory, it solely protects only third-party liabilities. We strongly advise you to get Comprehensive and Own Damage Car Insurance.
5. Are online calculators accurate?
Although they provide a reasonable estimate, actual quotations may differ depending on your input and the insurance company's policies.
