Insurance premium
You can obtain an insurance policy by paying a premium to an insurance agent or to the insurance company. The premium amount is calculated based on the car's market value, which is a function of the make and model, condition of the vehicle and the resale value, and the value of its accessories. Premiums are paid annually, and the insurance is valid for a period of a year.
The market value of the car should be estimated every time you renew your premium. The insurance must be renewed prior to the expiry date of the policy, as it is illegal to drive without a valid insurance cover.
The insurance premiums are regulated by the All India Motor Tariffs, and are therefore uniform across insurance companies. For a comprehensive policy, the premium covers all stated risks, but if you wish to exclude certain risks – such as earthquake – you may inform the insurance company and they will offer you a discount on the insurance premium.6. Look for Teen Driver Discounts

When you add your teen, ask the insurance company about discounts for new drivers. Students with good grades may be eligible for discounts; those who take an approved safety course may also be eligible. If your teen goes away for school and doesn't take the car, you may be able to get a discount for that, too.

7. Let the Insurance Company Spy on Your Teen

is one of the latest fads in the world of automobile insurance. Auto insurance companies send you a device that you plug into a port under your dashboard. It records how fast you drive, how fast you accelerate and how fast you brake, among other things. Then, if the auto insurance gods say you've been a good driver, you're rewarded with a discount on your premium.

These discounts are available to all drivers, but parents might find they are useful for monitoring their teens. Some companies issue reports grading driving skills, and some teens might be inclined to lay off their lead foot if they know someone, somewhere is watching. If you like the idea of monitoring your teen but aren't thrilled with the idea of letting an insurer inside your dashboard, you could 
You could also opt for voluntary excess i.e. undertake to bear a fixed percentage of the loss for every claim, and thus avail of a discount in premium. A five percent discount (subject to a maximum of Rs 100) is also available for members of recognised automobile associations.
Motor insurance policies are normally taken for a period of one year. While you cannot insure your vehicle for more than a year, a policy for a shorter term is available, which is suitable if you are planning to sell your vehicle within a few months. The premium for this short period insurance is more expensive than the pro-rata premium for a full period insurance.
No claim bonus
If you do not make any insurance claims during the duration of your insurance policy, you are eligible for a no claim bonus. No claim bonuses are discounts on the insurance premium for the following year (i.e. discounts offered on the renewal premium) and are as follows:

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