Let us call you back. Just share your number for a call back in less than 15 minutes

We can’t proceed without your mobile number. Help us?
Sigh. We need the reason for call back to pick the right person for the job. Help us?

Is it super urgent? Call us on our Toll Free numbers

BTW, we respond to email queries with lightening fast speed. Send email instead?


Someone from the team will get back to you ASAP!


Oh! Just in case you still need our Toll free

1800 209 9970
Also schedule a callback Also send an email

Your Claim Assistance request has been registered with us.

We will contact you before 11am tomorrow.

If its an emergency, for immediate assistance please feel free to contact our Customer Support Unit on 1800 209 9970

Car Insurance Premium Calculation for Residents of Delhi

The smartest way to buy and manage your insurance has become a necessity for Delhites due to the odd-even rule implied by the Government.

image title

With the odd-even rule implied by the Government from 1st of January, traffic on Delhi roads have become less unruly. Though the rule is garnering a positive response, why was the step taken? The high number of cars contributing to air pollution forced the Government to action this. Cars have become a necessity for Delhites with a massive increase in inhabitants. A car, however, comes with a mandatory insurance cover attached to it. Though you cannot avoid the cover, you should at least know the premium component. A car insurance premium is calculated considering a lot of factors which are explained below:

  • Coverage option: There are two types of insurance covers available on your car. One is the mandated Third Party Liability Cover which is also called Act Only cover. It compensates any third party or property against damages or bodily injury caused due to your car. The other one is Comprehensive cover which is a bundled cover against Third Party Legal Liability and also any damage to your car and yourself. While premiums for the Act only plans are fixed by the IRDA, insurance companies are free to charge the premium for a comprehensive policy as per their underwriting norms.

  • Engine Capacity: The premium for third party plans are fixed by IRDA taking into consideration the engine capacity of your car. IRDA has mentioned three broad capacity categories and premiums are fixed as per the categories. For engines up to 1000 cc, the premium is Rs. 1468, from 1000 cc to 1500 cc it is Rs. 1598 and for engines with a capacity higher than 1500 cc, the premium is Rs. 4931.

  • Insured Declared Value: This is the market value of your car net of applicable rate of depreciation. The rate of depreciation depends on the age of the car and increases with ageing. The table shows the rate of depreciation applicable to arrive at the IDV. For vehicles above 5 years, the company negotiates the IDV with the policyholder to arrive at an agreeable amount. Premiums will be higher for higher IDV and vice-versa.

Car Insurance Premium calculation for residents of Delhi

  • No Claim Bonus and other discounts: If you have not made any claims in previous years, the company will grant a No-Claim Bonus which will discount the rate of renewal premium you will pay and will lower the premiums. It could be from 20% to 50%. Moreover, if you have a membership of the Automobiles Association of India or have installed safety devices in your car like ABS or air bags which is approved by Automobile Research Association of India (ARAI), the premiums will be discounted.

  • Extra Fittings and Fixtures: The rising cost of petrol has enforced many people to switch to LPG or CNG source of fuel and they have installed a LPG/CNG Bi-fuel Kit as an additional feature. Moreover, if you have installed other fittings in your car like an AC unit or a music system, which did not come attached with the original model, you will have to pay a higher premium because the value of such fittings will be included in you policy.

  • Location: Delhi falls in the Zone A list of cities as prescribed by IRDA which entails a higher amount of premium than that charged in Zone B cities. So don’t feel cheated if your friend living in Ranchi or Amritsar is paying a lower premium than you for the same car with the same policy purchased at the same time.

  • Voluntary excess: Whenever you raise a claim in your policy, a part of the claim will have to be paid by you which is called the Compulsory Deductible is fixed by the IRDA. If you choose to opt for a higher Voluntary Deductible amount, it will drastically reduce your premium cost.

So before you open your wallet to pay the required premium, know what are you paying for. Is it for a bundled cover you opted or for the third party cover which is compulsory? Your premium will depend on the above mentioned parameters which require your understanding. You might also end up saving some money if you use the factors to your advantage!

Get lowest quotes for Car Insurance

Avail upto 60% discount on Premium.

Please enter a valid phone number
Thanks! We will get back to you soon.

I hereby authorize Coverfox to communicate with me on the given number for my Insurance needs. I am aware that this authorization will override my registry under NDNC.

Meeta Sabnis
Written by Meeta Sabnis
Her mantra in life is to dream, and dream until you turn them into reality. A neurotic Kajol fan, Meeta loves spending time with her gorgeous twins, ensuring a childhood they’ll be proud of. Bargain hunting, crazy dancing and romancing alphabets are some of her other cravings. She’s currently a Content Writer at Coverfox.

Spread the love!