Policybazaar Introduces India’s First Monthly Mode Car Insurance Policy

Alankar Mishra

Author

Updated: 16-04-2025 at 12:54 PM

India had never seen the option of single-month premiums for car insurance until Policybazaar stepped in. This new business model allows drivers to purchase motor insurance that can be paid monthly, unlike the annual systems practised. This forward-thinking provides for a more accessible and less financially strenuous option.

How the Monthly Mode Policy Differs from Traditional Car Insurance

Feature	Traditional Car Insurance	Monthly Mode Car Insurance
Payment Mode	One-time annual premium	Monthly installments
Policy Issuance	Valid for a year	New policy number every month
No Claim Bonus (NCB)	Accumulated over time	Resets to zero if payment is missed
Insured Declared Value (IDV)	Adjusted yearly at renewal	Constant for 12 months (unless changed)
Payment Process	Manual renewal each year	Automated monthly deductions via UPI/Net banking

Key Features

Paying for car insurance every year can feel like a huge responsibility. What if getting the protection you needed did not come with a long-term obligation? A monthly mode policy grants the freedom to renew easily without any hassle.

Coverage Term: One month per policy with a new policy issued monthly.
Guidelines for Underwriting: Stay the same for 12 months, guaranteeing coverage equality.
Automatic Renewals: Monthly payments through UPI or net banking are deducted automatically, providing uninterrupted coverage.

Benefits

Car insurance can seem challenging, especially when paying the full amount at once. But what if you could break it down into smaller payments? Well, that is where car insurance every month makes life convenient.

Greater Accessibility: There is no need to pay substantial annual premiums in advance.
Better Resource Management: Smaller monthly payments make it easy to budget.
No Need to Renew the Policy Manually: Automatic deductions ensure the policy remains active without lapses.
Consistent IDV for 12 Months: Unlike yearly policies where IDV differs each year, the IDV stays the same for the first twelve months after applying for the policy unless it is changed.

Conclusion

Policybazaar’s monthly mode car insurance policy is a revolutionary feature in the motor insurance industry. With the flexibility of paying coverage premiums over several months, Policybazar seeks to ease the burden of countless car owners. As such, continuous coverage is not financially burdensome. With this innovation, car insurance will indeed become more affordable in India.

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