Does IDV increase or decrease my premium?

A higher IDV increases your premium, because your insurer is agreeing to a larger potential payout if your car is stolen or considered a total loss. A lower IDV brings the premium down, though it also lowers what you would receive on that same claim.

Why is the Third-Party portion the same everywhere?

IRDAI sets the Third-Party rate directly, not individual insurers, so every insurer charges the same amount for the same engine size. Comparing Third-Party premiums between insurers for an identical car will never turn up a difference.

Does my car's engine size affect my premium?

Yes. For Third-Party cover, the rate is fixed by engine capacity: ₹2,094 for cars up to 1000cc, such as a Maruti Suzuki Alto; ₹3,416 for 1001cc to 1500cc, such as a Maruti Suzuki Swift; and ₹7,897 for cars above 1500cc, such as a Hyundai Creta. Engine size can also affect the Own Damage premium under Comprehensive insurance.

Does my city affect my car insurance premium?

It can, through the Own Damage portion specifically. IRDAI splits India into Zone A, the 8 largest metros, and Zone B, everywhere else, and a car registered in Zone A typically carries a 10 to 25% higher Own Damage premium, since claim frequency runs higher there. The Third-Party portion stays identical regardless of where you live or drive.

Does a higher voluntary deductible actually lower my premium?

Generally, yes. Agreeing to pay more yourself at claim time usually brings your premium down, though the exact reduction depends on your insurer and your specific car, so it is worth comparing before you pick an amount.

Does No Claim Bonus apply to the whole premium or just part of it?

Just the Own Damage part, never the Third-Party portion. This is why even a large No Claim Bonus discount only reduces one half of what you pay each year, not the total.

Do optional covers always increase the premium by the same amount?

No, each one is priced on its own, based on what it actually protects and your specific car. Adding several together increases your premium by the sum of each one, not by a single flat charge applied every time.

Is GST included in the premium I see, or added separately?

It is added separately, at 18% on top of your total premium, rather than folded quietly into the number you see before tax. Your final payment covers the Third-Party portion, the Own Damage portion, and this GST amount, usually shown separately on your policy document.

How does Kiwi's Super NCB affect my premium at renewal?

It changes how your No Claim Bonus behaves after a claim, stepping down only one level instead of resetting. Since this discount applies to your Own Damage premium specifically, a higher surviving discount keeps that half of your premium lower at renewal.

How comprehensive car insurance premiums are calculated: the honest breakdown

Written by

Reuben SolomonLead Content Writer

Reviewed by

Rupinderjit SinghHead - Tech Product & Digital Business

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Introduction

Two neighbours with almost identical cars can still pay very different insurance premiums, and there is usually a simple reason why. A comprehensive car insurance premium is calculated using several factors, including your car's value, age, engine size, location, claim history and the covers you choose.

Some parts of the premium are regulated, while others depend on your car and the choices you make when buying your policy. Understanding these factors can help you see what you are actually paying for and why your premium may change at renewal.

Keep in mind

Your premium has two parts, a fixed Third-Party rate and a variable Own Damage rate
Third-Party rates are set by IRDAI, so they are the same across every insurer
IDV, car age, city, and No Claim Bonus all move the Own Damage part
Optional covers and your deductible choice also change the final premium

The two parts that make up your premium

Your car insurance premium is not one single number decided by your insurer. It is made up of a Third-Party portion, fixed by Insurance Regulatory and Development Authority of India (IRDAI), and an Own Damage portion, which your insurer works out based on your specific car and cover choices, whether that Own Damage is part of a Comprehensive policy or stands alone.

For a private car up to 1000cc, such as the Renault Kwid, the Third-Party rate is ₹2,094, and this figure stays the same whichever insurer you buy from, because IRDAI sets it directly. GST of 18% applies on top of your total premium, again regardless of insurer.

The Own Damage portion is where the real difference between insurers, and between two similar cars, actually shows up. This part responds to your car's value, your city, your claims history, and the cover you choose, in a way the Third-Party portion never does.

What actually moves your Own Damage premium

Several factors shape this half of your premium, each in a different way:

IDV
A higher IDV means your insurer is agreeing to a larger potential payout, so it raises your premium
Car age
Your car's IDV falls on a fixed depreciation scale as it gets older, and the premium usually falls alongside it
City and zone
Cars registered in Zone A, the 8 largest metros including Delhi, Mumbai, Bengaluru, and Chennai, typically carry a 10 to 25% higher Own Damage premium than the same car in a Zone B city, because claim frequency runs higher in dense urban traffic. Zone B covers cities outside these eight metros, such as Pune, Ahmedabad, Jaipur, Lucknow and Chandigarh
Make, model, and engine size
Repair costs and theft risk vary across different cars, and the premium reflects that
Voluntary deductible
A higher deductible usually lowers your premium, since you agree to carry more of every claim yourself
Optional covers
Each one you add increases your premium by its own specific amount
No Claim Bonus
Every claim-free year lowers your Own Damage premium further, and the discount compounds over time

These factors explain why two similar cars can have different Own Damage premiums. Some are based on the car and its location, while others come down to your choices, such as the deductible you select, the optional covers you add and how your No Claim Bonus applies.

Why identical cars can still have different premiums

Two people with the same car model and the same purchase year can still pay different insurance premiums. One may live in a different city, have a different No Claim Bonus, or choose a different voluntary deductible or set of optional covers.

These factors are considered together when calculating the Own Damage premium, so comparing your premium with a friend's is not always an apples-to-apples comparison. Their premium can give you a rough idea of the cost, but it is unlikely to be an exact match for yours.

What you can actually influence at renewal

The Third-Party portion of your premium and the GST on top of it are fixed, and no amount of comparing or negotiating will change either one. What you can influence lives entirely within the Own Damage portion of your policy.

Keeping your IDV accurate, protecting your No Claim Bonus by avoiding small claims, and choosing your voluntary deductible and optional covers deliberately are the levers actually available to you. Reviewing these at every renewal is where a lower premium genuinely comes from.

Why will you be at an advantage with Kiwi Insurance

Your No Claim Bonus (NCB) can make a noticeable difference to your Own Damage premium. Kiwi's Super NCB is designed to help you retain more of that discount even after making a claim.

One-level drop after a claim
Your Super NCB drops by only one level instead of going back to zero.
Up to 90% discount
It can build up to 90%, giving you up to 40% more discount than a standard NCB.
You choose it separately
Super NCB is an optional cover that you can add to your policy along with other optional covers you need.

So, if you have built up your NCB over several claim-free years, Super NCB can help you retain more of that benefit when you make a claim.

Conclusion

Your premium is not random, but it also is not fully within your control. The Third-Party portion and GST stay fixed no matter what you do, while the Own Damage portion responds to your IDV, your city, your car, your No Claim Bonus, your optional covers, and the choices you make at every renewal. Reviewing those choices deliberately, rather than accepting the same combination automatically each year, is the most honest way to actually influence what you pay.

A premium built from the right details is the fairest premium you can get. Buy or renew your car insurance policy with Kiwi, and see exactly how your IDV, city, and No Claim Bonus shape the number.

Written by

Reuben Solomon

Lead Content Writer

Reviewed by

Rupinderjit Singh

Head - Tech Product & Digital Business

Frequently asked questions

Comprehensive car insurance premiums are calculated in two parts. The Third-Party portion is fixed by IRDAI, identical across every insurer, while the Own Damage portion, the part that makes a policy Comprehensive rather than Third-Party alone, is worked out from your car's IDV, age, city, No Claim Bonus, deductible, and any optional covers you choose.

How comprehensive car insurance premiums are calculated: the honest breakdown

Your price in 2 minutes

Introduction

Keep in mind

The two parts that make up your premium

What actually moves your Own Damage premium

IDV

Car age

City and zone

Make, model, and engine size

Voluntary deductible

Optional covers

No Claim Bonus