Sedan vs SUV: Which Car Insurance is More Affordable?

Purchasing a car is among the biggest moments in our lives. When we purchase a four-wheeler, we can deal with our daily routines or long-distance trips. Getting a suitable four-wheeler will help you drive around in comfort and luxury with your loved ones. Driving to your favourite spots with your loved ones can be some of the most cherished memories you can hold.

While purchasing a car can be quite helpful, you must get the appropriate car insurance for the vehicle. Apart from this, you must also ensure you carry out the car insurance renewal on time to enjoy the policy coverage. Most insurers these days allow customers to renew the plan online and file a car insurance claim through their website. Along with the insurance, you must also select your car model carefully.

The myriad of options available in the market makes the process difficult. The Indian automobile sector offers a wide range of models like hatchbacks, sedans, SUVs, etc. However, most individuals these days are confused between picking sedans or SUVs. SUVs are optimal for off-road trips, and sedans are suitable for road trips.

Apart from the features offered by the car, most individuals also worry about the costs associated with insuring the vehicle. If you’re confused about the insurance cost, you can consider a few factors that influence the cost.

Factors Influencing Car Insurance Cost

The cost of your car insurance plan will depend on several factors. However, given below are some factors you should consider to select a sedan or an SUV:

  • Car type: Different types of cars are designed for different reasons. There are hatchbacks, sedans with bigger cabin space, SUVs designed for off-roading, and commercial vehicles like utility vehicles. Generally, SUVs hold a decent engine, 4×4 mechanicals, and features that help them deal with rough conditions.

Earlier SUVs’ driving experience was not as comfortable as sedans or luxury SUVs. This has changed over time, and the new SUVs offer compact spaces with luxurious features, high ground clearances, etc. However, the vehicle’s market value will be one of the main factors determining the 4-wheeler insurance cost. Therefore, the insurance cost will also be higher with a higher market value.

  1. Fuel type: Generally, petrol cars are lower in price than diesel cars. Therefore, the cost of insurance is low for petrol cars. Therefore, you may get an affordable premium for a petrol-based SUV than a diesel-based sedan. Along with this, if you opt to include a CNG kit in your car, your premium amount will rise.
  2. Manufacturing year: The manufacturing year will provide information about the vehicle’s age. Your vehicle’s age will impact the insurance premium because of the depreciation factor. As the vehicle ages, it faces wear and tear because of repeated usage. As the market value is important for calculating the insurance premium, new vehicles levy a high premium compared to old cars.
  3. Insured Declared Value: Your car’s IDV is its current market value. The value is mutually agreed upon between the insurer and you when you purchase the plan or renew the insurance. The IDV amount set in your insurance document is what you will get if your car is damaged beyond repair or stolen.

If your IDV amount is high, you will have to pay a higher premium amount and vice versa. While you can set a lower IDV to lower your premium amount, you may not get adequate insurance coverage if something happens to your vehicle.

  1. Engine efficiency: A vehicle’s cubic capacity is a factor that influences the insurance price. For example, a bigger-size engine will attract a higher insurance premium as the vehicle’s market value will be on the higher side. Along with this, a car’s third-party insurance cost is set based on the engine capacity and not on the type of vehicle (sedan or SUV).
  2. Geographical location: Your geographical location plays a crucial role in pricing your car insurance plan. Areas prone to natural disasters, thefts, accidents will lead to a high insurance amount. Therefore, in a particular geographical location, one might have to pay more premium for a sedan than an SUV in a different location.

You must consider these factors when purchasing car insurance for your four-wheeler. Insurers like Tata AIG offer insurance calculators to help customers. Using the calculator to calculate the car insurance premium when purchasing four-wheeler insurance online can be helpful. You will understand the breakthrough of your premium amount and better plan your finances.

SUV vs Sedan: Insurance cost

The new-age SUVs include comfortable, safe and secure interiors and are offered at affordable costs. As a result, these SUVs have become the preferred option for several individuals in the country. In the past, SUVs were a bit expensive because of the performance parts used for dealing with tough terrains. However, with the new-age SUVs, you can enjoy the features of an SUV at an affordable price.

Therefore, the introduction of these SUVs has made a huge difference for individuals choosing between sedans and SUVs. Whether you choose an SUV or a sedan, the insurance cost will depend on the car’s market value. A midsize SUV and a sedan are almost in similar price ranges. Therefore, you can select either of them based on your suitability without worrying about the insurance cost.


Over the years, both sedans and SUVs have evolved and have started offering various features along with the car. However, if you’re worried about the cost of sedan insurance vs SUV insurance,  you must consider the car’s market value while making a decision. The insurance cost will primarily depend on the car’s market value and other factors.

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