Does Car Insurance Premium Differ According to Regions in India?

Imagine you and your companion, living in two distinct urban areas, buying comparative vehicle insurance plans from a similar insurer.But the installment both of you pay is unique. Asking why? This is on the grounds that the engine protection cost is different for various locales and depends on where you have enlisted your vehicle. Allow us to comprehend this idea in detail.


Car Insurance Price Depends on Different Regions

There are many variables on which the cost of a vehicle insurance contract depends. One such variable is the topographical area of the vehicle. Insurance agency charge a superior in light of the locale where the vehicle is being utilized. Four wheeler insurance installments are different in various districts of India.

For model, two individuals living in Mumbai and Lucknow separately should pay different insurance installments regardless of whether they buy a similar four wheeler protection plan from a similar guarantor. The primary explanation for this distinction is the city of vehicle registration which is Mumbai for oneself and Lucknow for the other one.


The four-wheeler insurance installment in a city that has more traffic and is more inclined to mishaps & thievery will be high when contrasted with a city that has less traffic. This is on the grounds that the responsibility of the back up plan will increment in a traffic-inclined city where the chance of vehicle harm or misfortune will be more. Along these lines, they will charge a higher vehicle protection value at such places and bad habit versa.

Car Insurance Zones in India

The IRDAI or the Insurance Regulatory and Development Authority of India has isolated India into two zones, specifically Zone An and Zone B. A four-wheeler insurance installment is assessed for a locale in view of these zones.

While Zone An incorporates level A urban communities like Mumbai, New Delhi, Kolkata, Bengaluru, Chennai, Hyderabad, Pune and Ahmedabad, Zone B incorporates the remainder of India.

Simply put, engine insurance installments for vehicles enrolled in various zones will be different.


Car Insurance Rate Calculation for Different Zones

While ascertaining engine protection rates for various zones, safety net providers think about two main considerations. In the first place, the age of the vehicle and second, the motor’s cubic capacity.

Given beneath is a table that shows the level of IDV (Insured Declared Value) thought about to compute the premium of Zone An and Zone B in light of these elements. For the unversed, IDV is the ongoing business sector worth of a specific vehicle that a policyholder gets if there should be an occurrence of a complete misfortune at the hour of guarantee settlement. These engine protection rates have been set by the IRDAI.

Motor Insurance Premium for Zone A

The vehicles enrolled in Zone An are more inclined to mishaps and robbery as these urban areas are more packed and have weighty traffic when contrasted with urban communities in Zone B. In this way, the four-wheeler protection cost in these urban communities is high because of the expanded responsibility of the insurer.

The vehicle insurance installment in Zone An is determined as follows:

Age of the Car Cars under 1000cc Cars between 1000cc to 1500 cc Cars more than 1500cc
Below 5 years 3.127% of the IDV 3.283% of the IDV 3.440% of the IDV
5-10 years 3.283% of the IDV 3.447% of the IDV 3.612% of the IDV
Above 10 years 3.362% of the IDV 3.529% of the IDV 3.698% of the IDV

Motor Insurance Premium for Zone B

The urban communities that go under Zone B are less inclined to street mishaps and burglary as these urban areas are less packed when contrasted with urban communities in Zone A. Along these lines, the thorough insurance payment in this zone is less.

The engine protection rates in Zone B are determined as follows:

Age of the Car Cars under 1000cc Cars between 1000cc to 1500 cc Cars more than 1500cc
Below 5 years 3.039% of IDV 3.191% of IDV 3.343% of IDV
5-10 years 3.191% of IDV 3.351% of IDV 3.510% of IDV
Above 10 years 3.267% of IDV 3.430% of IDV 3.596% of IDV

Other Factors Affecting the Motor Insurance Premium

Apart from the geological area of your vehicle, its IDV, vehicle’s age and motor relocation, a few different factors additionally influence the engine protection cost. They include:

  • Car Make and Model: The make and model of the vehicle likewise influence the cost of a four-wheeler insurance contract. For example, the premium of a rich car will be more when contrasted with that of a hatchback car.
  • Type of Coverage: The kind of inclusion you are wanting to purchase influences your vehicle protection rates. Assuming you are buying outsider insurance, your installment will be lower when contrasted with the exhaustive protection that covers both outsider liabilities and own damages.
  • Add-on Covers: A engine insurance charge likewise relies upon the extra covers that can improve the inclusion of a vehicle contract. The more additional items you remember for your standard vehicle plan, the more will be its premium.
  • Safety Features: Your four-wheeler insurance payment will diminish assuming you have introduced wellbeing highlights, similar to an enemy of burglary gadget, in your vehicle. In such cases, the possibilities of a case diminish, along these lines, decreasing the vehicle protection price.
  • Voluntary Deductibles: Opting for deductibles can likewise diminish the premium of your vehicle strategy. A deliberate deductible is a sum that you intentionally consent to pay during guarantee settlement. The remainder of the case sum is paid by the insurance agency. This brings down the obligation of the guarantor and subsequently, your engine strategy premium will decrease in the event that you pick an intentional deductible.


Car protection costs change according to the area where the vehicle will utilize. So whenever you are befuddled about an adjustment of your vehicle insurance installment, try to think about the locale of your vehicle registration. You can look at outsider protection as well as complete protection rates in view of your area for your four-wheeler on websites like