Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

What is Car Insurance Policy and Factors that Determine its Premium

The coverage of the policy i.e. the damage it covers and the amount that is paid in case of damage is mentioned in the terms and conditions of the policy.

Contributor Content

Updated:September 27, 2017, 8:21 PM IST
What is Car Insurance Policy and Factors that Determine its Premium
Image for representation only.

A Car or Vehicle Insurance policy provides you financial protection in case any damage is caused to your car or vehicle whether owing to natural disasters or accidental. Like every other insurance policy, a certain amount of money called premium has to be paid by the insurer usually on a yearly basis. The coverage of the policy i.e. the damage it covers and the amount that is paid in case of damage is mentioned in the terms and conditions of the policy.

However, the usual wear and tear and mechanical faults and breakdowns are not covered under the ambit of insurance. Your Car Insurance Policy usually covers the losses or damages due to natural disasters (i.e. fire, explosion, lightning, earthquake, flood, typhoon, hurricane, etc.); non-natural disasters (i.e. burglary, theft, riot, etc.) and third Party Legal Liability (i.e. a protection in case your vehicle in involved in an accident that results in permanent injury or death or damage to property).

When you purchase a car, it is compulsory to get buy a Car Insurance Policy as well. At times, depending upon the premium paid, a vehicle insurance policy also includes third person liability and medical expenses incurred i.e. higher the premium amount, more coverage and benefits you can avail.

The amount of premium paid for different types of vehicle insurance differs and depends on the following factors:


  1. Insured’s Declared Value or IDV

    This is a fixed value at which the vehicle is insured and it is the aggregate of the vehicle manufacturer’s selling price which is listed and the cost of any added accessories minus the annual depreciation.

  2. Car Owner’s Age

    The person who is getting the insurance policy also plays a huge role in getting a premium discount and is based on the assumption that as a person grows older he/she tends to be more responsible and doesn’t indulge in rash driving.

  3. Insured’s Profession

    Usually, professionals belonging to certain fields like Doctors, CAs, etc. get a discounted rate of Car Insurance premium.

  4. Claim History

In case, you haven’t made any insurance claims in the previous years despite having a car insurance, you get a no claim bonus as low as 10% and as high as 50%.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Puja Menon
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
HDFC 1,996.25 -2.47
Axis Bank 640.45 -4.54
Maruti Suzuki 6,130.40 -4.40
Yes Bank 65.10 -2.91
Reliance 1,197.45 -1.10
Company Price Change %Gain
Maruti Suzuki 6,130.65 -4.39
Yes Bank 65.15 -2.91
HEG 1,245.55 -11.23
Graphite India 339.50 -8.72
Indiabulls Hsg 429.05 -1.41
Top Gainers
Company Price Change %Gain
GAIL 131.90 1.70
Titan Company 1,158.25 0.84
HUL 1,831.20 0.82
Asian Paints 1,530.90 0.63
Dr Reddys Labs 2,738.05 0.47
Company Price Change %Gain
HUL 1,830.95 0.84
Asian Paints 1,531.05 0.69
Infosys 831.05 0.44
Top Losers
Company Price Change %Gain
Hero Motocorp 2,568.95 -6.20
Tata Motors 122.00 -5.13
Axis Bank 640.45 -4.54
Tata Steel 344.95 -4.47
Maruti Suzuki 6,130.40 -4.40
Company Price Change %Gain
Hero Motocorp 2,570.05 -6.19
Tata Motors 121.95 -5.13
Tata Steel 344.45 -4.62
Axis Bank 640.20 -4.62
Maruti Suzuki 6,130.65 -4.39

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results