All you need to know about the car model and car insurance premium


21 Jul 2023

How the model of your car affects your four-wheeler insurance premium

Understanding your car model and its associated insurance costs can be a daunting task. With so many car models on the market today, it’s important to make sure you understand the differences between them when selecting a car and shopping for car insurance online. Your car model is one factor that affects your car insurance premium, so it’s important to choose the right one.

In this article, we’ll explain everything you need to know about car models and car insurance premiums. We’ll discuss how different car models affect your insurance costs and how you can reduce your car model insurance premium.

How is the car model related to the car insurance premium?

Here is why the model of your car affects your four-wheeler insurance premium:

1. Cost of the vehicle

Vehicle parts for luxury cars tend to be more expensive, which in turn, raises the premium rate of car insurance. This is because insurance companies see these vehicles as more of a liability since they cost more to repair and replace. So, if you're considering buying an expensive car, be sure to factor in the cost of car insurance before you commit.

2. Age of the vehicle

A new car usually offers lower car insurance rates because it has fewer mechanical issues and is less likely to be in an accident. On the other hand, a damaged car can cost more to insure due to the potential risks it could bring.

3. The capacity of the engine

High-engine capacity vehicles often come with much higher car insurance coverage rates than smaller vehicles. This is because larger vehicles are often more expensive to repair and replace. They also tend to be driven at higher speeds and can cause more damage in the event of an accident.

4. Type of fuel used

CNG vehicles are more complicated than their petrol-run counterparts, and the components and systems need to be carefully maintained in order to ensure their optimal performance. As such, a CNG car insurance policy will be more expensive, as it needs to cover the additional costs of repair and maintenance that raise the premium rates.

How to reduce car insurance premiums?

Here are some points that can help you reduce your car insurance premium:

1. Installing anti-theft devices

Another simple strategy to minimise auto insurance is to limit the likelihood of the car being stolen. The greater the level of security, the lesser your premium will be. Fitting anti-theft equipment like anti-theft sensors, gear locks, as well as steering locks from certified suppliers can help you save money on your insurance.

2. Avoiding costly modifications

Whenever you make any changes to your automobile, you must notify your insurance since it may affect your rate. If you do not inform, your claim could well be denied later. Wheels, automobile interiors, and paintwork must be avoided if they enhance the likelihood of robbery. Similarly, every alteration in the engine or mechanical to boost performance or speed increases risk and raises premiums.


In short, understanding your car model is important when choosing a car and shopping for car insurance. A newer car will likely be more expensive to insure than an older model. This doesn’t mean that it’s impossible to get an affordable insurance premium on a new car; you’ll just have to shop around and find the right insurance plan with the most affordable rates. You can use online car insurance premium calculators to get an estimate of your car model insurance before buying.

Visit Kotak General Insurance for More Information.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.