Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Track & Policy DownloadLogin

Does Car Insurance Premium Change According To Regions In India?

Wish

Written by Saad Ahmad

Updated Oct 18, 2023

Does Car Insurance Premium Change According To Regions In India?

Before we go into detail about how your present location affects your vehicle insurance rate, let's go over some fundamentals. A car insurance premium is the cost of purchasing a certain plan from an insurer.

What Happens to the Car Insurance Premium in Different Regions of India?

Using the vehicle insurance premium calculator, you can estimate how much you'll have to pay in premiums. This is an online tool that is typically provided for free on the website of an insurance provider or an aggregator. Every insurance company has its own rates, but your premium is usually determined by given details about you, the type of car you own, and the premium coverage you select. You can even tweak a few variables to make the premium more affordable.

A car insurance policy requires your attention each time it expires, as it has a fairly short validity time, say one, three, or five years. Then you must weigh all the options and renew the plan to get continuous coverage. You must take into consideration things like the car's age, your current location, the number of claims, etc. While renewing the plan for optimal coverage, you must consider criteria such as the car's age, your current location, the number of claims, and so on.

The location where your car is registered is one of the primary elements that car insurance companies consider when determining premiums. Because automobile owners typically register their vehicles at the nearest Regional Transport Office (RTO), it's safe to assume that your car insurance rate will alter if you move.

It's worth noting that moving to a nearby neighbourhood has no significant impact on premium. If you move to another Indian state, though, your auto insurance price will be adjusted.

Does Car Insurance Premium Change According To Regions In India?

Do car insurance premiums change according to region?

The Indian insurance industry is regulated by the Insurance Regulatory and Development Authority of India, or IRDAI. Different Indian regions are separated into two halves according to this government body: Zone A and Zone B. The cost of car insurance varies depending on where you registered the vehicle.

Mumbai, Bengaluru, Ahmedabad, New Delhi, Hyderabad, Kolkata, Chennai, and Pune are in Zone A. Zone B covers the remainder of the country.
The location where your car is registered is one of the most important aspects that car insurance providers consider when determining your car premium rate. It is so because most automobile owners register their vehicles at the local Regional Transport Office (RTO), and it is fair to assume that your car insurance rate will differ if you migrate.

However, relocating to a nearby neighborhood has little impact on premiums. But if you move to another Indian state, your auto insurance premiums will vary.
Premium rates would be higher in urban cities. Rural areas are much less densely populated than urban cities. As a result, the car population is likewise relatively high. It causes more traffic congestion, and the chances of filing a claim rise as the number of accidents rises. The increased premium is to compensate for the higher risk of insuring a car.

Conclusion

The cost of car insurance varies depending on the region where the vehicle will be used. So, the next time you purchase or renew car insurance, do consider the region where your car is registered.

Also read: Variety Of Car Insurance Plans Provided By Kotak General Insurance

How Do I Check The Status Of My Tata Aig General Insurance Claim?

Wish

Written by Saad Ahmad

Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Read More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read

    FIND RTO OFFICES BY STATE IN INDIA

    FIND RTO OFFICES BY CITY IN INDIA