When you get a car, insurance should rank high on your list of things to think about, besides stuff like fuel efficiency, how it performs, or how it looks. A lot of first-time car owners feel shocked when they realise that the type and model of their car have a big impact on their insurance costs. Whether you’re buying car insurance online or just updating your current one, knowing how companies judge risk based on the car you drive can help you save cash and avoid headaches.
Why Insurance Cares About Your Car’s Make and Model
Before deciding what you’ll pay, insurance providers evaluate risk. The type of car you drive tells them things like:
Repair and replacement costs: Luxury or imported vehicles are expensive to fix, raising premiums.
Safety ratings: Cars with advanced safety features and strong crash-test performance often get lower rates.
Theft risk: Popular models frequently targeted by thieves attract higher premiums.
Engine size and performance: Cars with powerful engines or sporty designs usually cost more to insure due to their link with high-risk driving.
This means two drivers in the same situation may pay very different premiums simply because of their car models.
Luxury Cars vs Affordable Cars
Here’s an example: Your car insurance policy will cost more if you own a luxury sedan like a BMW or Audi than it would for someone with a hatchback such as a Maruti Suzuki Swift or Hyundai i10. This happens because repairing luxury cars is expensive, finding their parts is costly, and they often face higher chances of theft.
In contrast, budget-friendly cars found in India come with lower insurance costs since their parts are affordable and easy to get.
Importance of Technology and Safety Features
The automobile industry is rapidly adopting technology, and this now shapes insurance premiums. Cars equipped with ADAS (Advanced Driver Assistance Systems), airbags, ABS, and GPS trackers often enjoy lower rates because these features reduce accident and theft risks.
However, there’s a catch: repairing advanced technology can be costly. For example, replacing damaged sensors or electronic systems may reduce the savings you get from lower premiums.
To Pick the Right Insurance Online for Your Car
The make and model of your vehicle influence the premium you’ll pay, for which you can compare many car insurance options online with ease. Premium calculators from insurers can make things simpler. Add your car’s details to get a quick quote.
When you purchase car insurance online, you can find discounts, special deals, and tailor your policy with extras like zero depreciation, engine protection, and roadside assistance.
Suggestions to Keep Premiums in Check for Your Car Make and Model
Here’s how to manage your car premium based on your car make and model:
Research before buying a car: Compare how different models affect insurance premiums.
Look for safety features: Cars with advanced safety tech often have lower rates.
Opt for voluntary deductibles: This lowers your premium but means you share some claim costs.
Pick what you need: Avoid unnecessary add-ons to keep your policy affordable.
Key GST Updates on Cars from the 56th GST Council Meeting
The 56th GST Council meeting introduced key changes effective 22nd September 2025:
Petrol, petrol-hybrid, LPG, and CNG cars up to 1200cc and 4000mm length now attract 18% GST (down from 28%).
Diesel and diesel-hybrid cars up to 1500cc and 4000mm also fall under the 18% GST slab.
Luxury and larger hybrid cars crossing these limits will face a higher 40% GST (up from 28%).
Imported cars will continue to be taxed with IGST, calculated on assessable value plus customs duty.
These changes will affect the overall affordability of owning cars in India. With higher costs for luxury models, having a reliable plan like Chola MS Car Insurance becomes even more important to safeguard against accidents, damages, and financial risks.
Final Thoughts
Your car’s brand and model influence more than style or performance—they also shape your insurance costs. Whether you own a hatchback, SUV, or luxury sedan, understanding this link helps you plan better. For those seeking a trusted, flexible car insurance solution, Chola MS Motor Insurance offers convenient online plans with quick add-ons tailored to your car.
FAQs
1. Are larger vehicles always more expensive to insure?
Not always. While SUVs and luxury cars cost more, factors like safety ratings and theft risks also matter.
2. How can I check how my car model affects premiums?
Use premium calculators provided by insurers like Chola MS Motor Insurance for an estimate.
3. Do safety features lower premiums?
Yes. Airbags, ABS, and anti-theft devices reduce risk and often lead to lower premiums.
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