Motor insurance premium for a vehicle is calculated on the basis of multiple factors, including the Insured Declared Value (IDV) of the vehicle, make and model of the vehicle, seating capacity, cubic capacity etc. The premium amount also depends on a few other factors such as the type of policy chosen, deductibles, and add-on covers. Third-party premiums are decided by the IRDAI.
While choosing the motor insurance policy from an insurer, compare various coverages and their premiums to make the right choice.