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Learn How Magma HDI Car Insurance Premiums are Decided

By Juhi Walia
26 September 2022, 3:28 PM

Purchasing a car is a valuable asset. Maintaining it and protecting it against unforeseen circumstances through a car insurance online policy is not only beneficial but also mandatory. There is a never-ending list of insurers offering various car insurance online plans with different variants. Magma HDI General Insurance is one of the most reasonable, accountable, and creditable insurers in India that provide custom car insurance online plans

Magma HDI offers private car insurance, commercial vehicle insurance, motor tractor package, motor vehicle law only policy, motor vehicle trade policy, and internal trade risk policy for the motor vehicle. Additional riders can also be bought along with the main insurance from Magma HDI, which may result in a slight increase in the premium, but bring with it major benefits you can claim on your car insurance in case of any damage or loss.

Magma HDI has more than 300 offices in 22 states in India and is a joint venture between Magma Fincorp Limited and HDI Global SE. Let us learn the factors that affect the premium calculation when buying Magma HDI car insurance online

Factors That Affect the Premium Calculation of a Car Insurance Plan from Magma HDI

You must consider the below-mentioned points while ascertaining the cost of your car insurance online premium from Magma HDI:

The Kind of Plan You Have Opted for

Magma HDI offers various plans like third-party car insurance, comprehensive car insurance online plan, and standalone plan. Your premium depends on the level of coverage your car needs and the kind of policy you opt for.

Additional Riders

Magma HDI offers various riders or add-ons like engine cover, personal accident, zero depreciation, roadside assistance, key replacement, etc. For example, you purchase a roadside assistance rider with your Magma HDI comprehensive car insurance plan. This may increase your annual premium slightly, but if you ever get stuck on the road because of a puncture or petrol/engine issues, you simply have to contact Magma HDI, which will provide the relevant service as stated in the car insurance online policy.

IDV of the Car

The insured declared value (IDV) of car is the amount that corresponds to the current market value of your vehicle. Generally determined by your insurance company, this value is the current estimate of your car's price after deducting the depreciation value. Your car's IDV decreases over time as your car's value depreciates. When your car’s IDV decreases, the premium amount also reduces accordingly.

Car-related Features

Some car-related features affect the premium calculation amount of your Magma HDI car insurance online plan. These factors are:

  1. Residential Place - For example, if you drive on riskier or narrower roads, your residence's premium may be high. Driving in cities like Delhi and Mumbai may invite a higher amount of premium.
  2. The year of manufacture of your car.
  3. Accessories that are attached to your vehicle.
  4. The make and model of your car are substantial determinants of car insurance premium calculations. For example, if you possess a high-end sports car or a car with a larger engine capacity, Magma HDI car insurance online plans for such vehicles generally have higher premiums.
  5. Type of Engine – Magma HDI charges a higher premium than diesel cars and premium-class cars because of their high-end engines.

No-claim Bonus

When you first buy auto insurance, your driving history doesn't matter. If you have never filed a claim before, you are entitled to a premium discount known as the no-claim bonus (NCB). This discount is cumulative and increases with each year without claims. 

Depreciation and Displacement

Depreciation is the loss of value of an asset due to wear and tear, because of which the value of the car decreases, and so does the premium. Similarly, if the engine of the vehicle goes through a higher displacement, the risk automatically increases, and so does the premium amount on the policy.

The Safety Features of Your Car

Security systems that can be installed in a car, like anti-theft safety measures, GPS, airbags, and central locking, can help reduce the value of your car insurance online premium. Magma HDI would be assured that since you have applied a few security measures to your car, the risk of damage automatically reduces. This can reduce the value of car insurance premiums.


Your profession is a surprise factor that Magma HDI considers. If you have a job that requires you to use your vehicle regularly, you will almost certainly have to pay a higher premium. This is because the vehicle depreciates faster than other cars covered by the policy.


Magma HDI General Insurance is one of the leading car insurance providers in India. It has one of the most sought-after claims procedures, beneficial car insurance add-ons, and lower premium amounts. It is very important to compare Magma HDI car insurance policies with its competing products before purchasing your car insurance online. The criteria that affect your premium calculations are quite a few, and some of them have been mentioned above. It is advised to consider all variables before you take out the best car insurance plan.

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1. What are the different kinds of car insurance plans offered by Magma HDI General Insurance Company?

The different kinds of car insurance plans offered by Magma HDI are:

  • Private car insurance package
  • Commercial comprehensive car insurance package
  • Motor act only policy
  • Additional rider options

2. Does my area of residence affect your Magma HDI car insurance online premium?

Yes, your area of residence affects the insurance premium. The calculation of car insurance premiums majorly depends on your city, rural, or urban residential area.

3. What are the additional coverage or riders provided by Magma HDI?

Magma HDI General Insurance offers a variety of add-ons, including zero depreciation cover, return to invoice rider, consumable cover, key replacement, GAP value cover, roadside assistance, passenger assistance coverage, etc.

4. To file a car insurance online claim at Magma HDI, what kind of documents should you submit?

You must submit the following documents while filing a claim at Magma HDI:

  • Copy of the damage report
  • Copy of the car insurance policy and receipt of payment
  • Application form duly completed
  • Driving licence
  • Vehicle registration certificate
  • Stamped receipt by the repairer with an estimate of repairs
  • Invoices and cash memos of repairs
  • Verification of the road tax
  • Panchanama / FIR
  • License and certificate of eligibility

5. What are the various premium discounts offered by Magma HDI Car Insurance?

Various premium discounts offered by Magma HDI are:

  • No-claim bonus
  • Discount on the voluntary deductible
  • Discount for automobile association members
  • Discounts when anti-theft devices are installed
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