Motor premiums to shift as Policybazaar ditches flat-rate pricing

The premiums will be based on one’s driving patterns.

Motor insurance premiums will be tailored towards people and their driving behaviour in 2026, Policybazaar.com said.  

The premiums will be “based on real-time parameters and not static or blanket pricing,” said Paras Pasricha, head of motor insurance for the online insurance aggregator.

“A lot of intelligence is going into pricing an individual and assessing their specific risk signals, like past driving patterns,” Pasricha added. “This incentivises low-usage and lower-risk drivers by pricing them fairly.”

The India-based firm also predicted that access to and making motor insurance claims will be enhanced by digital touchpoints.

“The future of motor insurance will be defined by faster resolution, clearer outcomes, and far less friction at the moment that matters most,” Pasricha said.

A change in third-party pricing, last revised in 2022, is also anticipated in 2026 amidst evolving risks and inflation.

Changes in motor insurance will be implemented as new long-term products are already seeing greater traction and as customers look for continuity rather than annual renewal.

“This flexibility also allows insurers to think longer-term on pricing and servicing,” Pasricha said.

Policybazaar is also a multinational fintech company.