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Do ADAS Features Reduce Car Insurance Premiums in India?
Nikhila PSJun 26, 2026
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No, ADAS (Advanced Driver Assistance System) features do not reduce your car insurance premium in India. As of 2026, no insurer here gives a discount just for ADAS, and the higher cost of ADAS parts can even push your own-damage premium up.
ADAS components have the potential to reduce the risk of accidents and, in turn, the frequency of insurance claims. However, these systems also depend on costly sensors, cameras, and radar equipment. Accordingly, repair costs after a car accident can be significantly higher with vehicles equipped with ADAS.
Contents
What Are ADAS Features in a Car?
ADAS (Advanced Driver Assistance Systems) are helpful safety features in your vehicle that can either prevent accidents or alert you just before one occurs. Using small cameras and sensors installed at different spots of the vehicle, the system keeps an eye on the road and other vehicles around you.
Common ADAS features include:
Automatic emergency braking is a system that applies the brakes to prevent or mitigate a collision if one appears imminent.
Lane keep assist, a feature that gently steers the car back into its lane if you unintentionally drift out of it.
Adaptive cruise control, a system that maintains a safe distance from the vehicle in front.
Blind-spot warning is a feature that notifies you of a vehicle hidden in your blind spot.
Level 2 ADAS is what most cars fitted with these features in India have. The vehicle can alert you and brake or steer a little on its own. Still, you are the one responsible for driving.
Many owners see these as safety features, so they expect to pay a lower premium. Unfortunately, in India, price doesn't follow that logic yet.
Do Insurers in India Give a Discount for ADAS?
No. None of the insurance companies in India provides a fixed discount only for having ADAS, and IRDAI does not mandate one either. Your insurance cost is primarily determined by the value of your car and your claim record, not by the presence of safety features.
However, insurance companies are keeping an eye on ADAS. If overall accident rates show that these vehicles are involved in fewer collisions, some insurers may introduce an ADAS discount in the future. At the moment, it is better not to trust any advertisement of an "ADAS discount" without seeing the actual quotation, because simply having the feature does not bring down the regular premium.
Why Can ADAS Raise Your Own-Damage Premium Instead?
Having ADAS can increase your own-damage premium (the section of the policy that covers the repair of your own vehicle), as the car and its parts are more expensive. Generally, the price of the same car equipped with ADAS is 1 to 3 lakhs higher. This higher price leads to a higher IDV (insured declared value, the amount an insurer pays if the car is stolen or declared a total loss). A higher IDV results in an increase in the own-damage premium.
Repairs are pricier as well. Cameras and radar are generally installed in the windscreen, bumpers, and mirrors, so a minor hit might result in a sensor reset or replacement, which can be quite costly.
A comprehensive policy, or a standalone own damage insurance cover, will often pay for this calibration as part of a glass claim. So the cover is there, but the repair bills behind ADAS run higher, which is one more reason the premium does not fall.
Which Car Safety Feature Does Lower Your Premium in India?
There is only one modification that will reduce your insurance premium in India: an anti-theft device recognised by ARAI, not ADAS. If you install an anti-theft device certified by the Automotive Research Association of India (ARAI), you get a discount on your own-damage premium of up to 2.5%; however, this is limited to ₹500 per year. It is a very small saving. Moreover, the discount will apply only to the own-damage portion, not to the fixed third-party charge.
Your driving can earn more than your hardware. Many insurers now sell telematics plans (cover priced on how and how much you drive), and safe, low-mileage drivers can earn discounts of up to around 25%. If you want a price that rewards careful driving, a telematics or usage-based car insurance plan does that in a way ADAS hardware does not.
How Can You Actually Lower Your Car Insurance Premium?
A few steps make a real difference:
Protect your no-claim bonus (NCB, a discount for every claim-free year), which starts at 20% after one year and reaches 50% after five claim-free years.
Raise your voluntary deductible (the part of any claim you agree to pay yourself), which lowers the premium.
Set an honest IDV, because an inflated value only pushes the premium up.
Fit an ARAI-approved anti-theft device for a small extra discount.
Compare one insurance policy against another before your car insurance renewal, since prices differ between insurers.
ADAS belongs on your list of reasons to buy a safer car. It does not yet belong on your list of ways to cut the premium.
Key Takeaways
ADAS by itself earns no premium discount in India today. No insurer prices a discount for it, and IRDAI does not require one.
ADAS can raise your own-damage premium, not lower it. The variant costs more and its sensors are expensive to repair and recalibrate.
An ARAI-approved anti-theft device is the one fitting that cuts your premium. It saves up to 2.5% of the own-damage premium, capped at ₹500 a year.
Real savings come from your record and your driving. A protected no-claim bonus, a higher voluntary deductible, and safe-driving plans matter far more than hardware.
Frequently Asked Questions
Mostly Asked Questions on Do ADAS Features Reduce Car Insurance Premiums in India
Does having ADAS increase my car insurance cost in India?
Yes, car insurance premiums in India may rise slightly if you have ADAS. The main reason is that the Insured Declared Value (IDV) of ADAS-enabled cars is higher, and repair costs are higher in the event of accidents.
Is ADAS calibration covered by car insurance?
Usually, yes, under a comprehensive policy. If the front camera needs recalibration after a windscreen replacement, insurers often cover the cost as part of the glass claim. Check your policy wording first.
Do safe drivers get a car insurance discount in India?
Yes, on telematics or usage-based plans. These price the cover on how and how much you drive, so careful, low-mileage drivers can earn discounts of up to around 25%.
Do I need to tell my insurer that my car has ADAS?
Not as a separate step. The insurer prices your policy based on the exact variant of your car, which already reflects its ADAS features and higher value. There is no separate ADAS declaration to make.
Will ADAS cars get an insurance discount in the future?
Possibly. As insurers gather crash data showing that ADAS cars have fewer accidents, some may introduce an ADAS discount in the coming years. None offers a standard one in India as of 2026.
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