Car insurance quotes are becoming more personalised in India, with the same model and year potentially attracting different prices for different drivers. The change matters at renewal because a lower headline premium can also reflect a different IDV, deductible, add-on set or declared usage.
According to a PTI report carried by The Wire on 12 Oct 2026, motor insurers are moving further from broad category-based pricing towards quotes built around the vehicle, driver and selected cover. That is a reported industry shift, not a new nationwide order changing every motor premium.
Key takeaways
- Two similar cars can receive different quotes when their IDV, claim history, location, add-ons or usage inputs differ.
- Own-damage pricing is not the same as mandatory third-party cover; the two parts should be read separately.
- Usage-linked options can use annual kilometres or driving data, but telematics is not part of every policy or quote.
- Compare like for like: keep IDV, NCB, deductible and add-ons consistent before judging the price.
Why two similar cars can get different quotes
Motor insurance has two important layers. Third-party liability cover is mandatory for vehicles used on public roads, while own-damage cover protects the insured vehicle against covered loss or damage. The Insurance Regulatory and Development Authority of India says own-damage premiums can differ between insurers and are influenced by factors such as the vehicle, its declared value, claims history, location, discounts and selected cover.
The practical effect is that the phrase “same car” is not enough for a meaningful comparison. A quote for the same model and registration year can move when the insured declared value (IDV), no-claim bonus (NCB), voluntary deductible or add-ons change. Age, usage pattern and local risk can also affect the insurer’s assessment. The current PTI report describes this as a move towards pricing the specific risk rather than relying only on a broad vehicle category.
What usage-based pricing changes
IRDAI permitted general insurers to introduce technology-enabled options for motor own-damage cover, including “pay as you drive” and “pay how you drive”, through its July 2022 motor-insurance circular. An official insurer release issued on 21 Jul 2022 describes a usage-based add-on where the customer selects an annual kilometre band and driving behaviour may be assessed through telematics or an app.
These products are optional product designs, not a rule that makes every Indian driver share live driving data. A driver considering a usage-linked option needs to check what is measured, how often it is recorded, whether a top-up is possible when the declared distance is exhausted, and how the information affects renewal or claims. The actual terms depend on the insurer and the policy wording.
Estimate and quote are not the same
An online estimate is an indicative number generated before all underwriting details are confirmed. A quote is tied to a defined IDV, NCB declaration, deductible and list of add-ons. Comparing an estimate from one provider with a final quote from another can make an ordinary coverage difference look like a pricing advantage.
What to compare at renewal
- Policy validity and claim record: Check the expiry date, past claim details and NCB before entering renewal information. FuelPrice’s vehicle-insurance validity and fraud-check guide explains the documents and checks involved.
- IDV: Hold the IDV constant when comparing quotes. A lower IDV may reduce the premium but also reduces the maximum own-damage payout. The IDV and depreciation guide explains why this number matters.
- NCB and break-in status: Confirm that the no-claim bonus carried forward matches the previous policy. If the policy has lapsed, inspection or additional conditions may apply; the expired-policy renewal guide covers the checks to make.
- Deductible and add-ons: Put the voluntary deductible, zero-depreciation cover, engine protection and consumables cover on the same comparison sheet. A lower total may simply mean fewer protections or a higher amount paid by the owner during a claim.
- Usage and consent: If the quote uses annual kilometres or driving behaviour, read the data-consent terms and confirm whether the information changes only the current price or can also affect renewal conditions.
What changes now—and what does not
The fresh report does not announce an across-the-board premium cut, hike or new renewal deadline. It points to a more detailed way of generating quotes, while IRDAI’s policy guidance continues to distinguish regulated third-party liability cover from insurer-priced own-damage cover.
For drivers, the useful change is greater visibility into the inputs behind a quote. It does not create a guaranteed saving, and it does not mean that a telematics-based policy will suit every driving pattern. Actual offers vary by vehicle, location, policy terms, claim history and insurer underwriting.
Reader takeaway
When renewing, record the quote date and compare the same IDV, NCB, deductible and add-on list across offers. Then check whether any usage or driving-data condition changes the price, renewal process or claim obligations. This makes the rupee difference easier to explain and helps separate a genuine price change from a change in coverage.
Sources
- The Wire / PTI — “From Guesswork to Personalised Pricing: How Car Insurance Quotes Are Becoming Smarter in 2026” — 12 Oct 2026.
- IRDAI — “Introduction of New Add-ons in Motor Insurance” circular listing — 5 Jul 2022.
- IRDAI — “Motor Insurance - Policy Holder” — accessed 13 Oct 2026.
- Bajaj Allianz General Insurance — “Bajaj Allianz launches ‘Pay As You Consume’, a Usage-Based Motor Insurance Add-On Cover” — 21 Jul 2022.
This article is for general information only and is not financial, insurance or legal advice.
