Engine capacity car insurance

Is my car insurance premium related to the engine capacity of my car?


It is true that the engine capacity has an impact on your premium. The higher the capacity, the higher the premium. However, there are many factors that impact your Car Insurance premium too.

Model of the vehicle

The premium amount that you pay is primarily dependent on the Insured Declared Value. Remember, the more expensive your car is, the higher your insurance premium will be. The premium is also generally higher for diesel vehicles. While determining the premium amount of your Car Insurance policy, the insurance provider will also consider the year of manufacture and the vehicle’s registration date. In case your vehicle includes rare or expensive spare parts, you can expect an increase in the insurance premium.

Purpose of the vehicle

What are you going to use the vehicle for? Car Insurance is available for both personal and commercial vehicles. If you are planning to use the vehicle for commercial purposes, the insurance provider will probably charge you a higher premium for the policy. Why a higher premium for a commercial vehicle, you ask? That’s because the vehicle is a source of income.

Safety devices

Most modern cars in the market are fitted with an array of features to ensure the safety of all passengers in the vehicle. These safety features include airbags, enhanced braking systems, enhanced locking mechanisms and anti-theft devices. A few insurance providers will quote increased premiums for cars that are more prone to damage or theft.

You can bag a discount up to 2.5% on the insurance premium of your car if you have installed safety devices that are certified by the Automobile Research Association of India (ARAI).

Insurance zones

Your area of residence and the location in which your car is registered also affects the Car Insurance premium payable for your vehicle. For instance, vehicles registered in urban areas will have a higher premium, while those registered in rural areas pay relatively lower insurance premiums.

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BB Expert