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If you are a smoker and have a life insurance or mediclaim policy, then you will be paying a higher premium than the one your non-smoking friend will be paying for the same plan. Now, car insurance companies make a similar kind of distinction between different vehicles–say, petrol vs. diesel–when calculating the premium amounts.

Let’s then look at some of the key factors which play a role in determining the insurance premium for your car. Also read: Seven basic things about car insurance

Car profile vs. driver profile

As we have discussed earlier, the vehicle–and not the driver–is considered the “insured” party in India, as far as car insurance is concerned. Accordingly, premium estimation, too, is based largely on the various features of your car. Also read: 6 key top-up covers for car insurance

Older car, lower premium

The vintage or make (year of manufacturing) of your car impacts the total premium, for the simple reason that as the vehicle gets older, its value keeps declining due to depreciation (typically about 10% to 15% per annum).

Hence, the premium in, say the third policy year, will be lesser than that in the second year, and so on. So, if you have a Hyundai i10 of 2008 make and want to renew its insurance, then be prepared to shell out more bucks compared to your pal who has the same model–but of 2006 make.

However, if you have filed an insurance claim, then the premium is likely to go up in the following year. Also read: 5 tips to reduce car insurance premium

Pay more for higher-end models

What type of car you own makes a significant difference to the final premium bill. So, for example, an entry-level compact car will normally have a lesser premium compared to a hatchback. Likewise, a Sport Utility vehicle (SUV) will attract a bigger premium than an equally priced sedan.

Larger CC, bigger premium

There is no such thing as a free lunch, isn’t it? The more the cubic capacity of your car’s engine, the higher the premium you will have to pay. The basic minimum premium you can expect to be charged, if you have a car of more than 1,500 cc, is Rs 700–almost 17% higher than the Rs 600 levied on someone having a car of between 1, 000 cc and 1,500 cc. Also read: Third party premium on small cars almost doubles

Fuel option

Those of you having petrol cars have certainly bore the brunt of steep fuel price hikes in recent years, even as diesel car buyers enjoy a subsidy on their running costs. But hey, here is some good news for you–the insurance premium you will have to pay will be between 10% and 15% lesser than what the diesel car buyers will shell out. Similarly, cars running on LPG or CNG will attract higher premiums than their petrol versions.

Fuel tank

If the fuel tank of your car is made of fibre, then be ready to pay a higher premium of 3% to 4% than would have been the case otherwise.

Registration region

The region where you have registered your car is another important factor behind the premium amount. Insurers impose a higher premium on vehicle owners based in India’s eight leading cities–Mumbai, New Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Pune and Ahmedabad–whereas car buyers across the rest of the country enjoy comparatively reduced levels of premium.

Your profile

Your occupation, lifestyle and age also play a part in the premium calculation process. Doctors and chartered accountants are likely to earn a discount of 5%, while youngsters and those in field jobs such as journalists and salespersons are deemed risky drivers–and hence have to pay higher premiums. Also read: 10 Points to remember while choosing car insurance

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