Insurance premiums can vary widely for the same vehicle based on driver behaviour, location, and claims history, revealing a complex underwriting process beyond the car badge.
Two people buying the same car can end up paying very different motor insurance premiums because insurers look far beyond the badge on the bonnet. According to Business Today, insurance expert Deepak Johan said companies weigh a customer’s claims record, driving risk and location, not just the vehicle’s make and specification. That means the same model can be priced differently depending on who is driving it and where it is kept. [1], [2], [5]
Johan said claims history has a major effect on own-damage cover, largely because of the no-claim bonus, which can cut that part of the premium by as much as half. Industry guides from Insure.com, InsuranceQuotes and Uswitch say recent at-fault claims tend to push premiums up the most, while repeated claims over time can also make cover more expensive or harder to renew. [1], [2], [3], [4], [5]
Where a car is registered and driven also matters. Johan said insurers use driving patterns and historical loss data when pricing cover, which helps explain why the same model may cost more in Delhi than in Mumbai, Chennai or Bengaluru. Mercury Insurance says large cities typically bring heavier traffic, more accidents and greater theft or vandalism risk, all of which can feed into higher premiums. [1], [6], [7]
The broader point, according to Business Today, is that the vehicle is only the starting point in underwriting. Fuel type, local risk levels and a driver’s history all shape the final quote, so the cheapest premium is not always the best choice. Insurers, policyholders and comparison sites alike generally advise looking at claims behaviour, service quality, garage access and add-ons such as zero depreciation and roadside assistance before renewing or switching cover. [1], [2], [3], [4], [5]
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
