Home / Auto News / Buying a new car, bike? Get ready to shell out extra money from June; Here's why
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If you are planning to buy a new car or a bike, get ready to shell out more money from June 1 onwards. Buying a new vehicle is set to become expensive across the country as the Union Ministry of Raod and Transport has decided to increase the cost of third-party insurance.

According to the official notification by the ministry, private cars with an engine capacity of 1,000 cc will attract rates of 2,094 compared to 2,072 in 2019-20.

Private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of 3,416 compared to 3,221.

Whereas, cars above 1,500 cc will see a drop in premium from 7,897 to 7,890.

In the case of a two-wheeler, a 150cc-350 cc engine capacity will attract a premium of 1,366 and for two-wheelers, over 350 cc the revised premium will be 2,804.

The ministry has offered a discount of 7.5% on the premium for hybrid electric vehicles.

AN electric private car of 30KW will attract a premium of 1,780 and those exceeding 30 KW but not 65 KW will attract a premium of 2,904.

In the case of commercial vehicles exceeding 12,000kh weight, but not exceeding 20,000kg weight, the revised premium will be 35,313. And, in the case of goods carrying commercial vehicles exceeding 40,000 kg, the premium will increase to 44,242 as against 41,561 in 2019-20.

The Union Ministry has hiked the third-party premium rates after a gap of three years.

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