Imagine car insurance premiums that were lower for you than your fuel-guzzling Jackass-impersonator neighbour. Rather than a one-size fits all deal where your high-risk neighbour pays the same as you, even though you catch public transport all week and only drive your fuel-saving hybrid to the shops and back.

Well in India, as of January 2007, it's all becoming a reality. The government is de-tariffing auto insurance premiums allowing insurers greater scope and consumers better deals.

Think about all the variables that will begin to evaluate your car insurance premium. Driver's age, mileage each year, type of car driven, previous driving felonies, type of car, where the car is parked (roadside or carpark), repair and spare parts costs, colour of the car (it matters!) and the list goes on and on.

No I know most car insurance premiums have worked many of these variables into their risk analysis already and in some ways there is not a lot here that sparkles. However, insurers have only analysed generic variables. With competition coming out of a fixed price history these risk variables could become almost tailor-made. It wouldn't surprise me if many niche insurers sprung up offering all types of targeted products.

You may see adverts for insurers offering car insurance premiums that are specific to 55 year old plus drivers who own a hybrid Prius, keep them hidden behind their B&D automatic roller door and only drive between 10am and 4pm on dry days. And these premiums will be a lot cheaper than another 55 year old who leaves his petrol-powered at a Park & Ride and chose blue metallic paint when he picked it up from the dealership.

The big plus out of this legislation is there will be more jobs for risk analysts.