Two owners of the same model, same year, same city can now receive materially different car insurance quotes. That looks arbitrary from the outside. It is the visible edge of a long shift in how motor premiums are calculated in India, moving from category-based pricing towards pricing built on the specific vehicle and the specific driver.

The regulatory groundwork was laid in stages. Own damage premiums have long been free of tariff control, letting insurers price rather than follow a fixed schedule. In July 2022, IRDAI permitted general insurers to introduce technology-enabled options for the motor own damage cover, including ‘pay as you drive’ and ‘pay how you drive’. Use-and-file and regulatory sandbox reforms have since compressed the time it takes to bring a differentiated product to market.