What Your Car Insurance Premium Is Actually Made Of
When you get a car insurance quote, you usually see a single premium figure, and it is easy to assume it is one indivisible price you either accept or reject. In reality, that premium is several distinct things bundled together, some fixed by the regulator and identical everywhere, some set by the insurer and open to competition, and some optional extras you chose. Understanding this breakdown is the difference between blindly paying a quote and knowing exactly what you are buying, where you can save, and where you cannot.
A comprehensive car insurance premium has two core parts. The first is the Third Party premium, which is the legally mandatory cover under the Motor Vehicles Act, protecting you against your liability if you injure someone or damage their property. Crucially, this rate is fixed by the Insurance Regulatory and Development Authority of India, or IRDAI, based purely on your engine capacity, and it is exactly the same across every insurer in the country. For a private car, it is around two thousand rupees for engines up to 1000cc, about three and a half thousand for 1000 to 1500cc, and around eight thousand above 1500cc. You cannot bargain on this, and switching insurers will not change it.
The second part is the Own Damage premium, which covers your own car against accidents, theft, fire and natural disasters. Unlike the Third Party portion, this is calculated by each insurer as a percentage of your car’s Insured Declared Value, typically three to four per cent in the first year, and it is where insurers actually compete, so it can vary meaningfully between them. This is also the part that your No Claim Bonus discounts. On top of these two core components sit any optional add-on covers you select, each priced as a percentage of the Own Damage premium, and finally 18% GST is applied to the whole lot.
This calculator breaks your premium into every one of these parts, so you can see the mandatory Third Party cover that is the same everywhere, the Own Damage where you can shop around, each add-on you have chosen, and the GST, laid out clearly rather than hidden inside a single number. It also explains the two things buyers most often misunderstand: what your Insured Declared Value really means, and why your No Claim Bonus discounts only part of your premium. Seeing the anatomy of your premium lets you make informed choices instead of just paying whatever you are quoted.
IDV, NCB, and Comprehensive versus Third-Party
The most misunderstood number in car insurance is the Insured Declared Value, or IDV. It is not what you paid for your car, and it is not a figure you should minimise to save on premium. The IDV is your car’s current market value after depreciation, and it is the maximum amount your insurer will pay you if the car is stolen or declared a total loss. It falls every year as your car depreciates, following a standard schedule: roughly 5% off in the first six months, 15% by one year, and up to 50% by five years, after which it is mutually agreed. Because a lower IDV means a lower Own Damage premium, some buyers are tempted to declare a low IDV to save money.
But this is a false economy: if your car is written off, you receive that lower IDV, so you have simply under-insured yourself. Set your IDV close to your car’s true value.
The IDV also determines when your car is treated as a total loss. If the cost to repair your car after an accident exceeds 75% of its IDV, the insurer declares it a total loss and pays out the IDV, minus salvage, rather than repairing it. This is why an older car with a low IDV can be written off after even a moderate accident, and why, for such cars, comprehensive cover starts to make less financial sense. This calculator shows your total-loss threshold so you understand at what repair cost your car would be written off.
The second widely misunderstood feature is the No Claim Bonus, or NCB. This is a discount you earn for every claim-free year, starting at 20% after one year and rising to 50% after five consecutive claim-free years, and it is a genuinely valuable reward for careful driving. But the critical detail, which many drivers do not realise, is that the NCB discounts only your Own Damage premium, never the mandatory Third Party portion.
So if someone tells you their 50% NCB halves their whole premium, they are mistaken; it halves only the Own Damage part, while the Third Party premium and GST are unaffected. NCB also transfers with you if you switch insurers or buy a new car, so never let it lapse; renewing within 90 days of expiry preserves it, but a longer gap loses it entirely. This calculator applies your NCB correctly to the Own Damage alone, so your saving is shown honestly.
Finally, the choice between comprehensive and third-party-only cover comes down to your car’s value. Third-party-only is the legal minimum, cheap because it is just the IRDAI-fixed rate, but it leaves your own car completely unprotected against accidents, theft and floods. Comprehensive adds Own Damage cover for a modestly higher premium and is far better value for most cars. The exception is an old, low-value car: once the comprehensive premium climbs above roughly 8 to 10% of the car’s IDV, which happens as the IDV shrinks with age, paying for Own Damage cover on a car worth little may not be worthwhile, and third-party-only becomes the economical choice. This calculator shows your premium as a percentage of your IDV and flags when third-party-only may make more sense, so you can decide with the numbers in front of you.
How the Calculation Works
The tool builds your premium from its components in four steps.
Step one: your IDV
If you enter an IDV, it uses that; otherwise it estimates it from your ex-showroom price and vehicle age using the standard IRDAI depreciation schedule. The IDV is the basis for your Own Damage premium and the cap on your total-loss payout, so getting it right matters.
Step two: the mandatory Third Party premium
It applies the IRDAI-fixed Third Party rate for your engine capacity, or the electric-motor-based rate with the EV discount for electric cars. This is the same across all insurers and is not affected by your NCB, IDV or claims history.
Step three: the Own Damage premium, with NCB and deductible
It computes the Own Damage premium as a percentage of your IDV, rising with vehicle age, then applies your No Claim Bonus discount and any voluntary deductible discount, both only to the Own Damage. It adds your chosen add-on covers, each priced as a percentage of the Own Damage base, and the mandatory personal accident cover for the owner-driver.
Step four: GST and the verdict
Finally it adds 18% GST to the total taxable premium to give your final figure, and shows your premium as a percentage of your IDV, your total-loss threshold, and how a third-party-only policy would compare, so you can judge whether comprehensive cover is good value for your car.
Three Worked Examples From Real Owners
Here are three car owners understanding their premium properly.
Karthik sees where his premium goes in Mumbai
Karthik, in Mumbai, insures his 1497cc car with an IDV of eleven lakh. His comprehensive quote seemed high until the tool broke it down: the mandatory Third Party portion was a fixed three thousand four hundred rupees, the same at every insurer, while the Own Damage, at around three per cent of his IDV, was the larger and negotiable part. He realised that shopping around could only save him on the Own Damage and add-ons, not the Third Party, and that his premium was mostly Own Damage plus GST, not the small Third Party figure he had assumed dominated. Armed with this, Karthik compared Own Damage quotes across three insurers and found a 20% difference on that portion alone, saving a useful sum without changing his cover.
Divya learns her NCB does not cut everything in Bengaluru
Divya, in Bengaluru, had built up a 50% No Claim Bonus over five careful years and expected it to halve her entire premium. On the tool, she saw the reality: her 50% NCB applied only to the Own Damage portion, cutting that in half, but the mandatory Third Party premium and the 18% GST were untouched. Her total premium fell substantially, but not by half. The tool explained that NCB is a reward on the part of the premium that covers her own car, not on the legally fixed third-party cover. Divya was glad to understand this before renewal, and made sure to renew within the 90-day window so as not to lose the valuable NCB she had earned.
Rakesh weighs comprehensive against third-party in Pune
Rakesh, in Pune, drives a nine-year-old car now worth only about eighty thousand rupees. His comprehensive renewal, with a couple of add-ons, came to a figure that the tool showed was a high percentage of the car’s low IDV, well above the 8 to 10% rule of thumb. The tool pointed out that a third-party-only policy would cost only a small fraction of that, and that, given his car’s low value, paying a large Own Damage premium to protect a car worth so little may not be worthwhile. Rakesh weighed it up: the comprehensive premium was nearly a fifth of what the car was worth, so he switched to third-party-only, accepting that his own car was now uninsured but saving a premium that no longer made sense for the car’s value.
Frequently Asked Questions on Motor Insurance
How is a car insurance premium calculated in India?
A comprehensive car insurance premium is built from several components added together. It starts with the Own Damage premium, which covers your own car and is calculated as a percentage of your car’s Insured Declared Value, or IDV, typically three to four per cent in the first year. From this, your No Claim Bonus discount and any voluntary deductible discount are subtracted. Then the mandatory Third Party premium is added, which is fixed by IRDAI based on your engine capacity and is the same across all insurers. Any optional add-on covers you choose, such as zero depreciation, are added, each priced as a percentage of the Own Damage premium. A personal accident cover for the owner-driver is included. Finally, 18% GST is applied to the entire taxable premium. So the formula is roughly: Own Damage minus NCB and deductible discounts, plus Third Party, plus add-ons, plus GST. The key insight is that only the Own Damage and add-on portions vary between insurers and can be reduced; the Third Party premium is fixed. This calculator computes each component separately and shows you the full breakdown, so you understand exactly what you are paying for rather than just seeing a single total.
What is the difference between third-party and comprehensive insurance?
Third-party insurance is the legal minimum required to drive a car in India, and it covers only your liability to others: if you injure someone or damage their property or vehicle, it pays the resulting claims, up to the mandated limits. It does not cover your own car at all. Its premium is fixed by IRDAI based on engine capacity and is the same at every insurer. Comprehensive insurance includes this same third-party cover but adds Own Damage cover, which protects your own car against accidents, theft, fire, natural disasters and vandalism, and it also lets you add optional covers like zero depreciation. Comprehensive naturally costs more, because of the Own Damage component, but for most cars it offers far better value, since a single accident or theft could otherwise cost you the whole value of your car. Third-party-only makes sense mainly for old, low-value cars where the cost of Own Damage cover is high relative to what the car is worth. For any car of meaningful value, especially newer ones, comprehensive cover is strongly advisable. This calculator lets you compute both and shows the cost difference, so you can weigh the modest extra premium of comprehensive against the protection it buys for your own vehicle.
What is IDV in car insurance?
IDV stands for Insured Declared Value, and it is one of the most important and most misunderstood terms in car insurance. It is the current market value of your car after depreciation, and critically, it is the maximum amount your insurer will pay you if your car is stolen or declared a total loss. It is not the price you paid for the car, and it is not a figure you should set artificially low to reduce your premium. The IDV decreases every year as your car depreciates, following a standard schedule: about 5% in the first six months, 15% by one year, rising to 50% by five years, after which it is mutually agreed between you and the insurer based on the car’s condition. Because the Own Damage premium is calculated as a percentage of the IDV, a lower IDV means a lower premium, which tempts some people to under-declare it. But this is a false economy, because if your car is written off or stolen, you receive only that lower IDV, so you have under-insured yourself and will be out of pocket. The sensible approach is to set your IDV close to your car’s genuine current market value, accepting the slightly higher premium in exchange for a fair payout if the worst happens. This calculator estimates your IDV from the ex-showroom price and age, or uses the value you enter.
Does No Claim Bonus reduce my whole premium?
No, and this is one of the most common misconceptions in car insurance. Your No Claim Bonus, or NCB, is a discount you earn for each claim-free year, rising from 20% after one year to 50% after five consecutive claim-free years, and it is genuinely valuable. However, it applies only to the Own Damage portion of your premium, the part that covers your own car, and not to the mandatory Third Party premium, which is fixed by IRDAI. So if you have a 50% NCB, it halves your Own Damage premium, but your Third Party premium and the 18% GST are completely unaffected. This means your total premium falls by less than 50%, sometimes considerably less, especially for cars where the Third Party portion is a larger share. Many drivers are surprised at renewal to find their large NCB did not cut their premium as much as they expected, precisely because they assumed it applied to the whole thing. The NCB is still well worth protecting: it transfers with you if you change insurers or buy a new car, and it is preserved if you renew within 90 days of your policy expiring, but lost if you let the gap grow longer. This calculator applies your NCB correctly to the Own Damage alone, so the discount it shows is realistic.
Are third-party premiums the same across all insurers?
Yes, third-party premiums are identical across every insurer in India, because they are fixed by the Insurance Regulatory and Development Authority of India, IRDAI, not by the insurers themselves. IRDAI sets these rates annually based solely on the vehicle’s engine capacity for conventional cars, or motor power output for electric vehicles, and every general insurer must charge exactly the same third-party rate for the same category of vehicle. For a private car in 2026, this is around two thousand rupees for engines up to 1000cc, about three and a half thousand for 1000 to 1500cc, and around eight thousand above 1500cc, all exclusive of 18% GST. Because this rate is regulated and uniform, there is no point comparing insurers on the third-party premium; you will pay the same everywhere. What you can and should compare across insurers is the Own Damage premium, which each insurer prices itself and which can vary by 15 to 30% for the same cover, the pricing of add-on covers, the claim settlement track record, and the network of cashless garages. So when shopping for car insurance, focus your comparison on the Own Damage and service quality, not the third-party figure, which is beyond any insurer’s control. This calculator uses the official IRDAI third-party rates and shows them separately from the negotiable Own Damage portion.
What add-on covers are worth buying?
Add-on covers enhance your comprehensive policy for an extra premium, and their value depends on your car and circumstances. The most widely recommended is zero depreciation cover, which ensures that when you claim, the insurer does not deduct for the depreciation of replaced parts, paying the full cost instead. This is especially valuable for cars under about five years old, where parts are expensive and depreciation deductions would otherwise be significant, and it usually saves more at claim time than it costs. Engine protection cover, which covers damage to the engine from water ingress or oil leakage, is important if you live in a flood-prone city, since standard policies exclude such damage. Return to invoice cover, useful for cars under two years old, pays the original invoice price rather than the depreciated IDV if the car is a total loss, protecting you from the steep first-year depreciation. Roadside assistance is inexpensive and handy. Others, like tyre protection, consumables cover, key replacement and personal belongings cover, are more niche and worth buying only if the specific scenario matters to you. As a rule, prioritise zero depreciation for newer cars and engine protection in flood-prone areas, and be selective about the rest, since each add-on raises your premium. This calculator lets you select any combination and prices each one, so you can see the cost of your choices.
When is a car declared a total loss?
A car is declared a total loss, sometimes called a constructive total loss, when the cost of repairing it after an accident exceeds 75% of its Insured Declared Value. At that point, the insurer decides it is uneconomical to repair the car and instead pays you the IDV, minus the salvage value of the wreck, rather than funding the repairs. This is an important threshold to understand, because it means an older car with a low IDV can be written off after even a moderately serious accident: if the car is only worth eighty thousand rupees, repairs of just sixty thousand would trigger a total loss. When a total loss is settled, you receive the IDV, and the registration certificate of the car must be cancelled. This is one reason why comprehensive cover becomes less valuable for old, low-value cars, since the payout on a total loss is limited to the small IDV, while the premium to cover it may be disproportionately high. It also underscores why setting a fair IDV matters: the IDV is what you get in a total loss, so under-declaring it leaves you short exactly when you need the payout most. This calculator shows your total-loss threshold, 75% of your IDV, so you know the repair cost at which your car would be written off rather than repaired.
How can I reduce my car insurance premium?
There are several legitimate ways to reduce your premium, focused on the parts you control, since the Third Party portion is fixed. First, maintain your No Claim Bonus by driving carefully and avoiding small claims; a high NCB substantially discounts your Own Damage premium, and avoiding a minor claim to protect your NCB is often worth more than the claim itself. Second, opt for a voluntary deductible, agreeing to bear a fixed amount of any claim yourself, which lowers your Own Damage premium by 10 to 25% depending on the deductible chosen, though you then pay more out of pocket when you do claim. Third, shop around at every renewal, since the Own Damage premium for identical cover can vary 15 to 30% between insurers. Fourth, be selective about add-ons, buying only those that genuinely matter for your car and situation rather than a full bundle. Fifth, install anti-theft devices approved by the insurer, which can earn a small discount. And sixth, for an old, low-value car, consider whether third-party-only cover is more economical than comprehensive. What you should not do is under-declare your IDV to cut the premium, since that reduces your payout, or drop essential cover to chase a lower number. This calculator lets you test the effect of NCB, deductibles, add-ons and policy type, so you can find genuine savings without under-insuring yourself.
Do electric cars have lower insurance premiums?
Electric cars enjoy a lower third-party premium than equivalent petrol or diesel cars, because IRDAI provides a 15% discount on the third-party rate for private electric vehicles, introduced as an incentive to encourage EV adoption. For electric cars, the third-party rate is based on the motor’s power output in kilowatts rather than engine capacity in cc, and the 15% discount is applied on top. Hybrid vehicles get a smaller 7.5% discount. So on the mandatory portion of the premium, EVs are cheaper. However, the Own Damage premium for electric cars can sometimes be higher, because EVs, particularly their batteries, can be expensive to repair or replace, and the battery is a costly component that insurers price for. So the overall premium comparison depends on the balance between the lower third-party rate and the potentially higher own damage cost, which varies by model. As the EV market matures and repair networks grow, own damage pricing for EVs is expected to become more competitive. This calculator applies the 15% EV third-party discount when you select electric as the fuel type, so the mandatory portion reflects the incentive. For the own damage side, use a realistic IDV for your EV, remembering that its value and repair costs differ from a conventional car.
What happens if I let my car insurance lapse?
Letting your car insurance lapse has several consequences, some immediate and some lasting. First and most seriously, driving without at least valid third-party insurance is illegal in India and can result in a fine, and in the event of an accident during the lapse, you would be personally liable for any third-party claims, which for a serious injury or death can be very large. Second, you lose your accumulated No Claim Bonus if the lapse extends beyond 90 days from the policy expiry; within 90 days you can renew and retain the NCB, but after that the hard-earned discount is gone and you start again from zero. Third, after a lapse, insurers typically require a physical inspection of the vehicle before issuing a new policy, and there may be a gap in coverage during which your car is unprotected. To avoid all this, renew your policy before it expires; insurers are required to send renewal reminders, and setting a calendar alert is wise. If your policy has already lapsed, renew as soon as possible, ideally within the 90-day window to save your NCB, and be prepared for an inspection. The lesson is that continuity matters both legally and financially. This calculator assumes a continuous policy; a lapse that resets your NCB to zero would raise your Own Damage premium, which you can model by setting NCB to zero years.
Is the personal accident cover mandatory?
Yes, a personal accident cover for the owner-driver is mandatory for every car insurance policy in India, whether third-party or comprehensive. This cover provides compensation to the owner-driver in the event of death or permanent disability arising from an accident involving the insured vehicle, with a sum insured mandated by regulation, currently fifteen lakh rupees. The premium for this cover is small, a few hundred rupees a year, and it is included in your policy automatically. There is one exception: if you already have a separate personal accident policy with adequate cover, you may be able to opt out of the compulsory PA cover within the motor policy to avoid duplication, subject to the insurer’s process. You can also buy additional personal accident cover for passengers as an add-on, which is worth considering if you often carry others. The mandatory owner-driver PA cover is an important protection, ensuring that you or your family receive compensation if you are seriously hurt or killed in an accident in your own car, separate from any third-party or own-damage claims. This calculator includes the mandatory owner-driver personal accident premium in the total, since it is a required part of every policy, so the figure you see reflects the complete cost of a compliant policy.
Why is GST charged on car insurance?
GST at 18% is charged on car insurance premiums because insurance is a service, and under India’s Goods and Services Tax regime, insurance services attract GST at the standard 18% rate. It applies to the entire premium, both the Own Damage and Third Party components as well as any add-ons, and it is added on top of the base premium, so a base premium of, say, twenty thousand rupees becomes about twenty-three thousand six hundred after GST. This GST is a significant part of your total cost, adding nearly a fifth to the base premium, and it is unavoidable, being a statutory tax rather than an insurer charge. Unlike some other insurance products, there is no GST exemption or lower rate for standard motor insurance. It is worth being aware of the GST when comparing quotes, since some quotes may be shown exclusive of GST and others inclusive, so always confirm whether the figure you are comparing includes the 18% or not, to compare like with like. This calculator applies the 18% GST to the full taxable premium and shows it as a separate line, so you can see clearly how much of your total is tax versus the actual cost of the cover. When budgeting for your car insurance, remember to include the GST, as the base premium alone understates what you will actually pay by about 18%.
Should I claim for small damages?
Often, no, and understanding why can save you money. When you make a claim, even a small one, you lose your No Claim Bonus at the next renewal, which resets to zero and then has to be rebuilt over years. Because the NCB can discount your Own Damage premium by up to 50%, losing it can cost you a substantial amount across the following renewals, frequently more than the small claim was worth. For example, if a minor dent would cost twelve thousand rupees to repair, but claiming it would cost you fifteen thousand or more in lost NCB discounts over the next few years, you are better off paying for the repair yourself and keeping your NCB intact. The rule of thumb is to reserve claims for significant damage, where the repair cost clearly exceeds the value of the NCB you would lose, and to pay small repairs out of pocket. An NCB protection add-on can change this calculation by allowing one or two claims without losing your bonus, which may be worth buying if you anticipate small claims. Before making any claim, weigh the repair cost against the NCB you would forfeit and the higher premiums that follow. This calculator shows your NCB discount, so you can gauge what is at stake, and lets you model the effect of losing it by setting your claim-free years to zero.
How does vehicle age affect my premium?
Vehicle age affects your premium in two opposing ways. First, as your car ages, its Insured Declared Value falls due to depreciation, and since the Own Damage premium is a percentage of the IDV, a lower IDV means a lower Own Damage premium in absolute rupees. So in that sense, older cars are cheaper to insure. However, the second effect works the other way: insurers apply a higher Own Damage rate, a higher percentage, to older cars, because they are more prone to breakdowns and mechanical issues and more expensive to repair relative to their value, which pushes the rate up. The net effect is that the absolute premium usually falls as the car ages, driven by the shrinking IDV, but the premium as a percentage of the car’s value rises, making comprehensive cover progressively less economical for old cars. This is why, for very old cars, the comprehensive premium can become a large fraction of the car’s low value, at which point third-party-only cover becomes the sensible choice. The Third Party premium itself does not change with age, only with engine capacity. This calculator applies both effects, a lower IDV and a higher Own Damage rate for older cars, and shows your premium as a percentage of IDV, so you can see when age has made comprehensive cover poor value for your car.
Are the results from this tool accurate?
The tool provides an accurate, well-structured estimate of your car insurance premium, using the official IRDAI third-party rates and a realistic model of the own damage, NCB, deductible, add-on and GST components. The third-party rates and the 18% GST are exact, and the structure, own damage as a percentage of IDV, NCB and deductible discounts on own damage only, add-ons priced on the own damage base, is how insurers actually build premiums. However, some elements are necessarily representative rather than insurer-specific: the own damage base rate as a percentage of IDV varies between insurers and by your car’s exact model, city and risk profile, so the tool uses typical market rates; the add-on percentages are indicative and differ by insurer; and the IDV estimate from ex-showroom price uses the standard depreciation grid, whereas your actual IDV may be set slightly differently. The tool also does not capture insurer-specific loadings, discounts for anti-theft devices or membership of certain bodies, or the effect of your specific claims history beyond NCB. So treat the result as a reliable estimate of the ballpark premium and, importantly, an accurate breakdown of how the premium is composed and what drives it, but always get live quotes from three or four insurers before buying, since the own damage premium can vary meaningfully. The value of this tool is as much in understanding your premium as in the exact figure.
Can I transfer my No Claim Bonus to a new car?
Yes, your No Claim Bonus belongs to you, the policyholder, not to the specific car, so it transfers with you when you buy a new car or switch insurers, which is a valuable and often overlooked benefit. When you sell your old car and buy a new one, you can carry your accumulated NCB to the new car’s policy, so if you had built up a 50% NCB over five careful years, your new car’s Own Damage premium gets that same 50% discount, even though the new car has no claim history of its own. To do this, you obtain an NCB retention or transfer certificate from your previous insurer, usually when you sell the old car and cancel or transfer its policy, and present it to the insurer of the new car. Similarly, when you switch insurers at renewal, your NCB carries over; you simply inform the new insurer of your claim-free record, which they verify. The important caution is not to let your policy lapse for more than 90 days, as that forfeits the NCB regardless of how many claim-free years you had. Also, when you sell a car, the NCB does not pass to the buyer; it stays with you. So always claim and transfer your NCB when changing cars or insurers, since letting it go to waste means paying a higher Own Damage premium unnecessarily. This calculator applies whatever NCB you have earned, so enter your claim-free years to see the discount you are entitled to carry forward.
Disclaimer and editorial transparency
This motor insurance premium calculator is a free, independent tool from CalcWise.Finance. It builds your premium from its real components: the IRDAI-fixed Third Party rate by engine capacity, identical across all insurers, the Own Damage premium as a percentage of your IDV, your No Claim Bonus and voluntary deductible discounts applied to the Own Damage only, your chosen add-on covers priced on the Own Damage base, the mandatory owner-driver personal accident cover, and 18% GST on the total. It shows your total-loss threshold and how comprehensive compares with third-party-only cover.
The IRDAI third-party rates and the 18% GST are exact, but several elements are representative: the own damage base rate as a percentage of IDV varies between insurers and by your car’s model, city and risk profile; the add-on percentages are indicative; and the IDV estimate uses the standard depreciation schedule, whereas your actual IDV may differ.
The tool does not capture insurer-specific loadings or discounts, anti-theft benefits, or claims history beyond NCB. It is for informational and educational use, not insurance advice. Do not under-declare your IDV to cut the premium, as it reduces your payout, and do not drop essential cover to chase a lower number. Always obtain live quotes from three or four insurers before buying, since the own damage premium can vary meaningfully, and read the policy wording for exact terms. Verify rates at irdai.gov.in. Nothing here is financial or insurance advice.
