# Do Driving Habits Affect Car Insurance Premiums? | Brand Stories (HT Tech) > With over 4.6 lakh road accidents in India in 2022, insurers are changing how they assess risk. Companies like ACKO utilize telematics to evaluate driving behavior, offering lower premiums for safe drivers and higher costs for risky driving practices. # Do Driving Habits Affect Car Insurance Premiums? ## With over 4.6 lakh road accidents in India in 2022, insurers are changing how they assess risk. Companies like ACKO utilize telematics to evaluate driving behavior, offering lower premiums for safe drivers and higher costs for risky driving practices. Sept 08 2025, 15:32 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![Do Driving Habits Affect Car Insurance Premiums?](https://images.hindustantimes.com/tech/img/2025/09/08/1600x900/Calcu_1757325725721_1757325746227.png) Do Driving Habits Affect Car Insurance Premiums? ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By HT TECH Road accidents are very common in India. Did you know that over 4.6 lakh road accidents took place in India in 2022 alone? That’s more than 1,200 accidents a day, a staggering number that has prompted insurers to rethink how they assess risk. Until recently, car insurance premiums were calculated mainly on factors such as type of vehicle, city of registration, history of past claims, etc.. However, due to the presence of digital insurers and advanced telematics, your driving habits are becoming an important factor in determining your insurance premiums. Forward-thinking insurers like ACKO are leading the way by offering data-driven, customer-centric car insurance solutions. This means that careful, responsible drivers may soon benefit from lower premiums, while risky driving could lead to higher costs. In this guide, we break down how driving habits influence car insurance premiums and what you can do to stay on the right track. ## How Driving Habits Influence Car Insurance Premiums? In India, car insurance premiums were traditionally based largely on predetermined factors, such as the make and model of the car, the age of the driver, claim history and location. But with the use of telematics and usage-based insurance plans, insurers are starting to take into account how an individual drives. Driving behaviour is a good indicator of risk. Safe and cautious drivers are statistically less likely to make claims, whereas aggressive or careless drivers are more likely to attract accidents and, therefore, higher payouts of claims. In response to this, insurers are shifting towards more personalised premiums, where good driving behaviour is rewarded and high-risk behaviour penalised. This change is being led by digital-first insurance companies such as ACKO, which use technology to make more accurate risk assessments. There are also some insurers that provide app-based or device-based monitoring, which tracks driving habits and assists in building a driver risk profile. This profile will then be used to adjust your premiums and the process will be more dynamic and fair. ## Key Driving Habits That May Affect Car Insurance Premiums Although every driver has to undergo the usual insurance assessment, some driving behaviours can make a significant difference in terms of premium rates. The following are some of the major behaviours that insurers can look at to determine your risk profile: - Speeding: Driving above the speed limit regularly poses a danger of accidents and can be an indicator of recklessness. - Sudden Braking and Harsh Acceleration: These patterns are usually a sign of aggressive driving, which can result in increased wear and tear and more claims. - Sharp Turns and Sudden Lane Changes: This is a red flag because it is a habit that is usually linked to road accidents and traffic offences. - Night Driving or Driving During High-risk Hours: Driving at night or during peak traffic hours is associated with high risks of accidents. - High Annual Mileage: The higher the number of miles you travel the more you are exposed to the risk on the road. This can increase your premium under usage-based insurance. - Repeated Traffic Offences: A history of fines, challans or licence points indicates that you are a risky driver and this can have a negative impact on your insurability. ## Can Good Driving Behaviour Lower Car Insurance Premiums? Good driving habits can positively impact your car insurance premium, especially under newer, data-driven insurance models. While traditional policies often apply flat rates, digital insurers are increasingly rewarding safe drivers with discounts, benefits or renewal perks. Here is how good driving can work in your favour: - Fewer Claims Mean Lower Premiums: Maintaining a claim-free record can earn you a No Claim Bonus (NCB), reducing your premium by up to 50% over time. - Usage-based Discounts: Driving fewer kilometres or during low-risk hours can lead to lower premiums under mileage-based or telematics-based plans. - Safe Driving Scores: Some insurers track driving behaviour through apps or devices and offer lower premiums to drivers who consistently show safe patterns. - Loyalty Rewards and Add-on Benefits: Insurance providers may offer policyholders additional perks or loyalty discounts if they drive responsibly over long periods. ## Impact of Bad Driving Habits on Car Insurance Just as safe driving can lower your premium, risky driving behaviour can lead to higher insurance costs, or even policy denial in extreme cases. Insurers view poor driving habits as red flags, indicating a higher likelihood of claims. Here are some consequences of bad driving on your car insurance: - Higher Premiums on Renewal: Frequent claims or unsafe driving patterns can lead to increased premium rates when you renew your policy. - Loss of No Claim Bonus (NCB): Filing claims regularly, especially for avoidable incidents, can eliminate your NCB benefits and remove the discount you could have earned. - Policy Loading: In high-risk cases, insurers may apply a loading, which refers to an additional charge added to your premium based on your risk profile. - Claim Rejections or Delays: Accidents caused by negligence, traffic rule violations or driving under the influence can lead to complications during claims processing. - Denial of Policy Renewal: In extreme cases, insurers may refuse to renew your policy if you are considered too risky to insure. ## Tips to Improve Driving Habits and Save on Insurance Improving your driving behaviour not only makes roads safer but also helps reduce your car insurance premium over time. Here are some practical tips to build better habits and potentially lower your costs: - Stick to Speed Limits: Driving within legal speed limits reduces accident risk and keeps you off the radar for traffic violations. - Avoid Sudden Braking or Acceleration: Smooth driving helps maintain your vehicle’s condition and reflects safer behaviour. - Follow Traffic Rules: Obey signals, wear your seatbelt and avoid using mobile phones while driving to avoid fines and insurance complications. - Drive During Safer Hours: Minimise late-night or high-traffic driving whenever possible to reduce your exposure to risky conditions. - Limit Unnecessary Travel: Lower mileage may qualify you for usage-based discounts offered by insurers. - Use Technology: Some insurers offer mobile apps to track and improve your driving. Regular feedback can help you identify and correct risky habits. ## Conclusion Your driving habits play a bigger role in your car insurance premium than you might think. With the rise of telematics and usage-based models in India, insurers are increasingly rewarding safe, responsible drivers while charging higher premiums to those with riskier profiles. By adopting better driving practices, like following speed limits, avoiding harsh braking and reducing unnecessary mileage, you can lower your long-term insurance costs. Platforms like ACKO are making this easier with tech-enabled tools that track behaviour and offer personalised pricing. Disclaimer: This article is sponsored content curated by HT Syndication. The inputs and details accounted for in the article do not necessarily reflect those of HT, and HT does not endorse or assume any responsibility for the information provided. Want to get your story featured as above? click here! Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. 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