Are There Regional Variations in India’s Four-Wheeler Insurance Rates?

Do you know that the cost of a car insurance policy varies by region? Also, did you know that if you buy the same four-wheeler insurance for two different four-wheelers in two separate states, the rates would be different? Let us find out more!

You and one of your friends who live in a different city chose to get the same motor car insurance coverage from the same insurance provider. You purchased them with the same price and same coverage. However, they weren’t the same when it came to paying the premium. You could not figure out why you had to pay more for the same car insurance while your friend paid much less.

The insurer clarified the rationale, stating that four-wheeler insurance premiums are affected by a variety of factors, including the place where you registered your four-wheeler. So, you now know that your friend pays less for the same insurance for the car, while you reside in a metro city and registered it there. Do not worry, let us go through this subject in depth in this informative blog post.

Why Do Four-Wheeler Insurance Premium Rates Differ by Region?

The cost of a car insurance plan in India is determined by a number of criteria, including the geographical location where you live, the location of the vehicle, as well as the place where you’ve registered the four-wheeler. As a result, car insurance will change depending on the geographical location of the four-wheeler. These characteristics do have an impact on the policy premium rate, whether it’s a new four-wheeler insurance plan or a renewal of the same.

For example, suppose you reside in New Delhi and your friend lives in Guwahati. Now, if you and your friend both get the same car insurance plan from the same insurance carrier for your respective vehicles, you’ll have to pay a higher premium than your friend. It’s because you registered your four-wheeler in New Delhi, which has greater traffic than Guwahati.

Well, with traffic comes increased risk for the insurance because your four-wheeler is more prone to damage, accidents, theft, and so on. As a result, you pay a greater premium for four-wheeler insurance than your friend.

Car Insurance Zones in India

According to the Insurance Regulatory and Development Authority of India, our country is split into two zones – Zone A and Zone B, on which the premium for car insurance plans in India is determined. Zone A includes metropolitan cities such as Kolkata, Bengaluru, New Delhi, Hyderabad, Pune, Chennai, and Mumbai. Zone B contains the remaining cities. As a result, car insurance rates by state vary in which state it is registered.

Factors Influencing Four-Wheeler Insurance Rate Calculation for Different Zones

Aside from location, insurance companies consider two important considerations when calculating four-wheeler insurance prices. The considerations include the car’s age or how old it is, as well as the cubic capacity (cc) of the engine. In order to determine the premium amount to be paid for a four-wheeler registered in a certain zone, insurance companies consider Insured Declared Value or IDV (which is the present market worth of your car).

An IDV calculator is used to determine the market worth of your four-wheeler. You can check it all by yourself by visiting the official website of your insurance provider.

  • Zone A Premium

Those in ‘Zone A,’ which are densely inhabited and have considerable traffic, are more prone to accidents than cities in Zone B. As a result, four-wheeler insurance premiums in these areas are expensive since the insurer has more responsibility in these areas.

  • Zone B Premium

Because Zone B cities are less populated than Zone A cities, the likelihood of an accident occurring is lower. As a result, the comprehensive premium rate charged on your best four-wheeler insurance in India is lower here.

The Bottom Line

The preceding explanation makes it evident that vehicle insurance premiums vary by area, and it is best to keep this in mind while shopping for four-wheeler insurance online. Furthermore, there are several additional factors that influence four-wheeler insurance premiums rates.

So, the next time you wish to get a four-wheeler insurance policy or renew your insurance plan, examine all of these criteria as well as the location of your car registration before purchasing the policy. You may also take the help of an online car insurance calculator to evaluate and compare different plans in order to get the best four-wheeler insurance policy for you.