header Car Insurance

Factors That Affect the Premium of Kotak Car Insurance Policy

By Juhi Walia
23 September 2022, 10:58 AM

Kotak car insurance provides vehicle owners comprehensive, own damage and third-party car insurance coverage for the insured car and covers own damage, personal injury, 3rd party liability damage. When you purchase a car insurance policy, the insurer assumes the risk. You will need to pay the premium to benefit from the insurance coverage. Premium is the amount vehicle owners must pay to keep the coverage in place. Insurance providers determine the premium amount after evaluating the risks associated while insuring your vehicle. You can also pay your premium periodically.

Several factors are considered while calculating the Kotak car insurance premium. Two primary factors that affect policy premiums are voluntary deductibles and decision-making for low insurance coverage. Some other factors also affect your Kotak insurance premium. Knowing all these factors can be helpful when making necessary decisions.

What is Covered In Kotak Car Insurance?

Following are the damages that Kotak car insurance covers:

  • Damage caused by natural disasters such as cyclones, explosions, fires, or earthquakes
  • Damages caused by human-made calamities such as theft, riot, strike, etc
  • Damage due to accidents
  • Bodily injury or death caused by an accident
  • Damage caused to the vehicle owner while driving the car or being present in the vehicle as a co-driver

What is Kotak Car Insurance Premium?

The insurance premium is an amount vehicle owners have to pay to the insurance provider to ensure they get coverage under a comprehensive or third-party car insurance plan

Kotak decides the premium based on the type of cover chosen and the probability of filing the claim. Factors that affect the car insurance premium include your location, vehicle's make and model, etc.

All these factors are essential in determining the Kotak car insurance premium. As a fact, the premium is decided by an underwriter or an actuary who does the base calculation as it also helps determine the associated risks to insure you.

Kotak car insurance premium is also determined based on the insurance history. If the chances of filing a claim are higher, you will need to pay a higher premium and vice versa.

Factors That Influence the Premium of Kotak Car Insurance Policy

Following are the factors that affect the policy premium of Kotak car insurance policy:

Car owners

As is customary, the cost of a car insurance premium has as much to do with the owner as with the car. In India, the driver's history primarily affects the amount of the best car insurance. In other words, if you maintain a good driving record and history, you will have to pay lower insurance premiums.


Most people get confused and ask, "what is IDV in car insurance?" The amount reflecting the current market value of your car is known as the insured declared value or IDV.

The insurance provider generally sets this value and is the estimated current price of your vehicle after depreciation. It reduces over time as the vehicle value lowers due to depreciation. The greater the IDV of a vehicle, the higher the insurance rate.

Safety Features

Your insurance provider can discount your overall comprehensive car insurance package premium if your vehicle is well-equipped with an effective anti-theft and lock device. When someone tries to steal your vehicle or it is broken down, the car alarms and other equipment notify the owner. Most cars are now equipped with a GPS tracking system that can help track a stolen vehicle.

Car Model and Manufacture

Among your car insurance rate variables are the model and class of your car. Compared to ordinary and slower cars, the premiums for riskier cars like sports cars are usually higher. Premiums are higher for cars with more cubic capacity or those that run on gas or CNG.

Number of Claims

Another aspect that affects the cost of your car insurance is the number of car insurance claims you have made. People who didn't raise any claims during the policy year are given a reduction in their policy premiums by Kotak.

No-claim Bonus

NCB in car insurance is another factor that influences the Kotak insurance policy premium. Insurance companies offer policyholders a discount on their motor insurance premium as a reward for no claim made during the term. The NCB usually starts at 20% and goes up to 50%. However, if you claim, the NCB is reset to zero.  

How to Calculate Kotak Car Insurance Premium?

As mentioned earlier, Kotak Mahindra usually calculates the car insurance premium based on several factors. The common factors are:

  • Type of insurance policy
  • IDV
  • Make
  • Model
  • Usage
  • Registration
  • Fuel type

You can take the help of a car insurance premium calculator to get an accurate estimation of the premium amount for your comprehensive, own damage or third-party car insurance policy. Kotak insurance offers a car insurance premium calculator tool that can help you calculate the premium. Here is how you can calculate your car insurance premium:

  • Go to the official website
  • Click or tap on "get a quote"
  • Put all the information on the vehicle insurance calculator, such as the RC, mobile number, and email ID.
  • Click on "get quote"
  • The site will display the car insurance premium, and you can modify the IDV value and add-ons. The premium will be updated according to the data you have entered

Alternatively, you may visit Paytm Insurance to calculate car insurance premiums seamlessly. Enter your car's registration number in the correct box and click on 'get quotes.' Paytm Insurance displays the best premiums from various car insurance companies, including Kotak, to help you make the best decision.


The best car insurance in India is inexpensive and offers much-needed financial support to dependents in case of the insured's death. Now that you know the factors that will affect the car insurance cost, you can use this information to make an informed decision when buying coverage.

Paytm Insurance provides the most straightforward interface to purchase the best comprehensive and third-party car insurance policies. Check the latest quotes before making a purchase decision.

Read more -


1. Does Kotak Insurance settle claims quickly?

Kotak General Insurance, which offers car insurance, is good on insurance claims or purchases, coverages, and add-ons. It comes with a claim settlement ratio of 97%, as per what it has updated on its official website. Claim settlement data sourcing date - 23/09/2022.

2. Does Kotak car insurance cover damages caused by natural disasters?

Yes, Kotak covers the damages caused by natural calamities like cyclones, storms, earthquakes, etc. Read the policy agreement to learn about the maximum amount you can claim.

3. Can we extend the scope of Kotak insurance coverage?

Kotak car insurance allows people to customise their policies by offering them useful add-ons.

4. Which factors affect Kotak's car insurance premium?

The factors that affect Kotak car insurance premiums include the:

  • Insurance policy type
  • IDV
  • Make
  • Model
  • Usage
  • Registration
  • Fuel type.

5. How can I know the premium amount of Kotak car insurance?

Visit the website of Kotak insurance and enter your car's registration number to get affordable car insurance quotes.

Car Insurance banner
Car Insurance

Starting at only ₹6 per Day*

Enter your details to buy Car Insurance
By proceeding you agree to Terms & Conditions
Proceed without car number