Car Insurance Premium Calculator

Every car insurance policyholder has to pay a premium towards the plan. To find out how much you have to pay, you can use a premium calculator available on insurers’ websites. The premium is calculated by a simple formula.
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In recent times, owning a car has not only become a status symbol but also a necessity. A car is an asset that is seen as a milestone in everybody’s life. A prudent choice to make after buying a car is obtaining a car insurance. A comprehensive car insurance cover will act as a financial safeguard against unexpected accidents and minor mishaps on the road. A car insurancepolicy is mandatory in India by law and it will also ensure that you and your vehicle stay safe always.

Car Insurance Premium Calculator

What is Car Insurance Premium Calculator?

  • Car insurance premium calculator is a dynamic tool provided, online, by car insurance companies.
  • Almost every reputed motor insurance company has an insurance premium calculator on their official portal.
  • With the help of the car insurance calculator, customers can get a quote for their car insurance policy and the premium amount they need to pay for the same.
  • Just visit the ‘car insurance calculator’ page and fill in some basic information about yourself like the policyholder’s name, contact details and address, followed by some standard details about the insured/to be insured car.
  • These details are – car manufacturer’s name, model number of the car, manufacturing year, car sub-type (if any), fuel type and registration date.
  • Some companies also give you an option of selecting if you want to insure the accessories installed inside the car.
  • After you have filled the details correctly, just click on the ‘calculate premium’ button and you will immediately get the quote.
  • After this, you also get an option to get more information and payment option to buy car insurance of your choice.

How is the Car Insurance Premium Calculated?

This simple formula will help you understand the car insurance premium calculation better. Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium as Fixed by the IRDAI + Cost of Add-ons

A sample car insurance calculation is described below for your understanding.

Year of Manufacture 2012 Comprehensive Policy with NCB (all values in Rupees)
Ex Showroom Price 4,16,000 (X)
Depreciation Percentage 20% * X Rs.83,200 (Y)
Insured Declared Value (IDV) 3,32,800 (X - Y) Rs.3,32,800 (Z)
Own Damage Premium 1.970% Rs.6,556 (A)
NCB discounts 20% * A Rs.1,311 (B)
Total OD Premium 5,425 (A - B) Rs.5,245 (C)
Personal Accident Cover 100 (D)
Legal Liability Paid to driver 50 (E)
Compulsory Third Party Cover 1,110 (F)
Net Premium 6,505 (C + D + E + F) Rs.6,505 (G)
GST @ 18% 18% * G Rs.1,171 (H)
Total premium 7,676 (G + H) Rs.7,676

Factors that affect the Car Insurance Price:

The premium of car insurance depends on the following factors:

  1. IDV (Insured Declared Value) of the vehicle
  2. Type and age of the vehicle
  3. Cubic capacity of the engine
  4. Geographical zone
  5. Age and gender of the owner-driver
  6. Fuel type
  7. Profession of the owner
  8. Voluntary deductible
  9. No Claim Bonus (NCB)
  10. Anti-theft device installation

Car Insurance Premium Calculated on the below Mentioned Factors:

A “Package Policy” has two main components namely ‘own damage premium’ and ‘liability premium’. It is important to note that liability premium is fixed by the insurer. It is the minimum statutory premium to be paid as fixed by IRDAI (Insurance Regulatory and Development Authority of India). The liability premium amount depends on the engine power of your car. More the cubic capacity, more will be the premium.

The third-party liability premium chart (for private cars) released by the IRDAI for the financial year 2017-18 is as follows:

Engine Capacity Premium effective from 1 April 2018
Less than 1,000 cc Rs.1,850
Between 1,000 cc and 1,500 cc Rs.2,863
More than 1,500cc Rs.7,890

Let us look at some important components that influence the premium of a comprehensive/package policy:

  • Insured Declared Value or IDV of the Vehicle
    • At any point, your car is worth some value. Assuming you had insurance for your car, the value will help the insurance company decide on the compensatory amount. IDV will decide the value of your vehicle at any given point of time under a comprehensive car insurance cover.
    • Simply put, IDV is the maximum amount that you can claim for any loss or accident of the vehicle. It is one of the important factors that greatly affect the premium.
    • IDV = Ex-showroom price of your car + cost of accessories (if any) – depreciation value as per IRDAI
    • Depending on the age of the vehicle, the depreciation ranges from 5% to 50% of the ex-showroom price.
  • No Claim Bonus (NCB)
    • In order to reward policyholders for being a responsible driver, insurance companies have come up with the concept of No Claim Bonus. You are entitled for a NCB discount if you have not made a claim the previous year. If you have a NCB component in your policy, you can save up to 50% on the own damage (OD) premium.
  • Discounts
    • There are some additional discounts that are offered under own damage premium. Some of these discounts are as mentioned below:
      • Installation of an anti-theft device like a car alarm can help you get a discount on car insurance premium.
      • Getting a membership in Automobile Association of India (AAI) is a great way to avail a discount in premium.
      • Opting for voluntary deductibles/excesses can lower your premium.
      • Car insurers offer profession-based discounts to defence personnel, government employees, and doctors.
  • Loadings
    • Any electrical or electronic accessory that is fitted in the vehicle like CD/DVD players, CNG or LPG units, but is not included in the manufacturer’s selling price of the car is insured at an extra amount.
  • Age and gender of the car owner
    • Individuals below 25 years of age are considered to be more risky drivers. Hence, insurance providers offer car insurance at a higher premium for people in the age group of 18 years to 25 years.
  • Make and model of the car
    • High-end cars such as Bentley and Audi are insured at a higher cost when compared to more affordable vehicles like Santro and Alto. Similarly, SUVs are charged higher insurance premiums than ordinary family hatchbacks.
  • Geographical location
    • Since the density of traffic is high in cities, you will have to shell out a higher amount to get your car insured there.
    • Moreover, the incidence of thefts and robberies are considered to be high in urban areas. This directly impacts the premium of car insurance.
  • Fuel type
    • A CNG fitted car will be costlier to insure than diesel and petrol models.
    • Also, a diesel car will attract a higher insurance premium than a petrol car. This is due to the following reasons:
      • A diesel car is more expensive than a petrol car of the same model. Since the premium for car insurance is directly proportional to the cost of the car, the premium will be higher for the diesel variant.
      • It is more expensive to get a diesel car repaired post an accident, when compared to a petrol car.
      • Diesel cars have gained a lot of popularity in the recent years. When diesel cars became as attractive as their petrol variants, the insurance premiums for these vehicles also witnessed a hike.
  • Year of manufacture
    • The older the car is, the lesser will be its IDV. This leads to a lower insurance premium as well.

Use Online Car Insurance Calculator and Make a Prudent Purchase Decision:

A car insurance calculator, apart from enabling you to calculate the premium online, also helps you compare policies between different car insurance providers. This caters to the varying needs of customers, as it helps them evaluate the options available in the market and narrow down on a plan that suits their needs. You can also buy a car insurance policy online in a few simple steps following policy comparison.

Benefits of Car Insurance Premium Calculator:

  • The car insurance premium calculator is easy to use and yields results in a few minutes.
  • You can use it at the convenience of your home and benefit from a hassle-free and paperless policy purchase experience.
  • One of the major advantages of a car insurance calculator tool is that you would not be influenced by insurance agents who, after all, are working towards attaining their sales targets.
  • On the calculator tool, you can change the variables of coverage and see how the premium changes accordingly. The tool is a great medium to educate yourself on the nuances of a plan and hence, helps you in making the best decision at the time of buying a policy.

Premium Calculation for Used and New Cars:

Every car insurance company uses its own set of parameters to calculate the premium for a policy. However, the factors that are considered by most insurers are listed below:

  • Premium calculator for used cars - The online car insurance calculator tool helps you in procuring the most appropriate auto insurance policy for your vehicle in a transparent and convenient manner. To calculate the premium for used cars, you will have to provide the following details:
    • Type of car
    • Fuel type
    • Details of the existing car insurance policy
    • Registration number of the car
    • Details regarding change in ownership
    • Claims for previous years, if applicable

The used car insurance calculator tool will show you the premium required to insure the vehicle in a matter of seconds.

  • Premium calculator for new cars - The new car insurance calculator tool provides a listing of top insurers and their car insurance products in a few simple steps. This offers a new car owner the much needed guidance in narrowing down on an appropriate auto insurance policy for his/her prized set of wheels. The details you would have to provide to calculate the premium for insuring a new car are:
    • The name of the car manufacturer
    • The model of the vehicle
    • Year of manufacture
    • Personal details of the owner-driver
    • State of registration of the vehicle

Tips to Reduce Car Insurance Premium:

  1. No Claim Bonus is an easy way to progressively reduce your premium. For example, consider the following scenario where because of NCB, the premium is being lowered gradually.
IDV of the Vehicle Premium – with NCB discounts Premium – without NCB
Year Value in Rs. NCB % Premium Amount in Rs NCB % Premium Amount in Rs
Year 1 3,60,000 0 11,257 0 11,257
Year 2 3,00,000 20 9,006 0 11,257
Year 3 2,50,000 25 7,036 0 9,771
Year 4 2,00,000 35 5,081 0 9287
  1. Another way through which you can reduce premium is to become a member of the Automobile Association of India (AAI) and by installing anti-theft and locking devices in your car.
  2. Also, you have to ensure that the IDV of your vehicle is judged correctly before the policy is issued. This will not only ensure that you are being charged the right premium but will also guarantee a hassle-free claim process.
  3. Select your vehicle carefully based on your need. Don’t buy an SUV if you are commuting less than 50kms a month. Remember, the showroom price and CC of your car also add to the premium amount.
  4. Drop any unnecessary add-on covers which will otherwise increase your premium costs.
  5. As mentioned above, opting for voluntary deductibles at the time of buying auto insurance is a great way to reduce the premium you pay towards it. If you are a confident driver, you can go ahead with a high voluntary deductible amount. This will bring down the premium by a considerable amount. However, ensure that you will be able to pay the voluntary deductible amount in the unlikely (but possible) situation of a car accident.

Car Insurance Calculator FAQs:

  1. Do vintage cars receive any discounts on auto insurance premium?
  2. A discount of 50% will be offered on the third-party liability premium of vintage cars. These vehicles should be certified as vintage cars by the ‘Vintage and Classic Car Club of India’ to avail this benefit.

  3. Can I use the online car insurance calculator tool when renewing my auto insurance?
  4. Yes, this is possible. At the time of car insurance renewal, you can compare policies between insurance companies and decide on an appropriate plan using the car insurance premium calculator tool.

  5. What are the benefits of being a member of AAI?
  6. If you are a member of the Automobile Association of India (AAI), you can avail the following benefits:

    • You can get an international driving permit (IDP) issued in your name in a hassle-free manner.
    • The association will guide you through the process of re-registration of vehicles.
    • The automobile association has the power to transfer the ownership of a vehicle. So, if needed, a member can contact the association for the same.
    • The association helps a member in getting his/her address details updated in the driving license.
    • AAI helps you in procuring a duplicate license in case you have lost the original.
    • The association helps you in the renewal of your driving license.
    • You can get a discount on auto insurance premium by being a member of AAI.
  7. How does the IDV of a car reduce with age?
  8. The depreciation of a car increases as the vehicle gets older:

    Age of the car Percentage of depreciation
    Less than 6 months 5%
    Between 6 months and 1 year 15%
    Between 1 and 2 years 20%
    Between 2 and 3 years 30%
    Between 3 and 4 years 40%
    Between 4 and 5 years 50%

    The depreciation of a vehicle is inversely proportional to its Insured Declared Value (IDV). This implies that the IDV decreases as the car ages.

  9. Does the comprehensive auto insurance plan include personal accident cover for the passengers?
  10. No, a comprehensive car insurance policy only offers personal accident cover for the owner-driver. If the passengers also need personal accident protection, you will have to include an add-on cover that provides you this coverage.

Car Insurance Guide Page

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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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Car Insurance Calculator Reviews

Page 1 of 50 1 2 3 4 5
  • United India Car Insurance
    "Service is good"
    0.5 4.0/5 "Great!"
    Took my car insurance from United India based on the agent suggestion. I pay the premium amount of Rs. 3600 its because of the no claim bonus and some extra discounts. I have not applied any claim till now. From 7 years, i have been renewing the policy with the same company. They will give reminder call and I'm getting SMS from United India before the policy expiry.
    Was this review helpful? 0
    , jaipur
    Reviewed on Jan 16, 2020
  • New India
    New India Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Chosen my car insurance from New India since its a government sector company and i have a known person over there. There is no cashless claim i had because there is a delay in that and it takes almost 1 week. They are giving claim upto 70% since my vehicle is old one. I pay the premium amount of Rs. 12500 on every year. They said they are providing a road side assistance and no claim bonus facility.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jan 16, 2020
  • Liberty Car Insurance
    "Wrost service ever "
    0.5 1.0/5 "Really Bad"
    My car in total loss and they have reject my claim. 2 months they have investigate case and after they reject. they says your car is sold by you . i am saying i have not sold and i have proof but they dont want to listen us. never buy from liberty insurance.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jan 13, 2020
  • Iffco Tokio Car Insurance
    "Good Insurance Policy"
    0.5 4.0/5 "Great!"
    I have a zero claim experience for my car insurance from Iffco Tokio. Actually my friend has suggested me to take the car insurance from Iffco Tokio because he is working as a agent over there. I have paid the premium amount of Rs. 8000 for that they are providing the coverage value of Rs. 2.75 lakhs. I have no idea about the road side assistance and no claim bonus.
    Was this review helpful? 0
    , vapi
    Reviewed on Jan 06, 2020
  • New India Car Insurance
    "Good Insurance company"
    0.5 4.0/5 "Great!"
    Taken my car insurance from New India Assurance. When i purchased the car from the showroom that time they have provided this insurance which i'm continuing. Till now i didn't claimed anything and i have no idea about the coverage value. They are giving good customer support and wish to continue the same.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 06, 2020
  • Reliance General Car Insurance
    "good service"
    0.5 5.0/5 "Blown Away!"
    I have chosen Reliance insurance as my friend is a franchise. I have taken a third party car insurance from them. I pay the premium of Rs.3000 on yearly basis. Even though it is a third party insurance, I can get upto 15lakhs. I will not get notification for renewal. I pay the premiumthrough online or directly to them.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 27, 2019
  • Reliance General Car Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have taken a car insurance from RELIANCE GENERAL INSURANCE. It has some good benefits and the premium is low. I pay Rs.7,000 on yearly basis and also as no claim bonus options. It also includes garage benefits. I have no claim experience yet. I will get notification regarding the insurance from car showroom not from the insurance provided. I pay through online or cheque.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 22, 2019
  • Reliance General Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Chosen my car insurance from Reliance. Because their office near by my work place, so that its easy to renew the policy. They have provided me IDV value of Rs. 4.50 lakhs and the provided premium amount was Rs. 9,500. This is a third party insurance. I have not applied for any claim till now. I have got the no claim bonus of 30%.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 20, 2019
  • Shriram Car Insurance
    "Good Plan"
    0.5 5.0/5 "Blown Away!"
    1 month ago, i have purchased the car insurance policy from Shriram General Insurance. Since the premium amount was less, i have chosen the same. They have given me a documents on the same day. I have not got any no claim bonus. I have paid the premium amount of Rs. 19000. Its a third party cover policy.
    Was this review helpful? 2
    , chennai
    Reviewed on Dec 20, 2019
  • Iffco Tokio Car Insurance
    "Good Claim experience"
    0.5 4.0/5 "Great!"
    Earlier i had a car insurance with Iffco Tokio and had a claim experience. Since the premium amount is high and the IDV value is less hence i have changed the policy by next year. They have processed the claim in one week. They have cover upto 100% and i have paid only Rs. 500. I have paid the premium amount of Rs. 50000 for the coverage amount of Rs. 7.40 lakhs.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 18, 2019
  • Bajaj Allianz Car Insurance
    "Easy policy to take"
    0.5 4.0/5 "Great!"
    From Bajaj Allianz, i have chosen the car insurance policy. Its easy to claim hence my friend had recommended me about this policy. I have paid the premium amount of Rs. 30000. They are giving a IDV value of Rs. 6.90 lakhs. Its a zero depreciation policy. I do not have any claim experience as of now.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 18, 2019
  • Oriental Insurance Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    Chosen my car insurance from Oriental because their office is located next to my office. I had a claim experience once and it was very good. They have provided the claim immediately as per the spot instruction. They provided me a 100% since its a zero depreciation policy. I used to visit their branch to renew the policy.
    Was this review helpful? 1
    , coimbatore
    Reviewed on Dec 17, 2019
  • Oriental Insurance Car Insurance
    "You can go for it but make sure about the clarity"
    0.5 1.0/5 "Really Bad"
    Earlier i was having a car insurance from Oriental. When i contact the customer care service, they are not giving guidance regarding the ownership change. They are not providing good service hence i have cancelled the car insurance with them since i do not want to continue.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 14, 2019
  • Shriram Car Insurance
    "Easy Process"
    0.5 5.0/5 "Blown Away!"
    I'm not facing any problem with Shriram General Insurance. I didn't contact the customer care service till now. I bought the car insurance from Shriram because i felt the premium is little cheaper than others. They are providing the IDV value of Rs. 1.5 lakhs. They have not provided me a claim bonus.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 14, 2019
  • New India Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    Till now i didn't talk with the New India customer care service. One time there was a fraction happen for my car that time made the claim and they took 1 week to give the claim. I've paid the premium amount of Rs. 15000 approximately. By online only, i used to renew the insurance.
    Was this review helpful? 1
    , kochi
    Reviewed on Dec 13, 2019
  • Bajaj Allianz Car Insurance
    "Policy Coverage & Claim Experience"
    0.5 1.5/5 "Bad"
    I had taken a car insurance with Bajaj Allianz & find the claim experience (originals are requested to be in possession of surveyor via dealer) & policy coverage (surveyor said the damage to my car is probably due to rat/dog which is not covered), due to which i had to eventually pay from my own though i pay hefty auto-premium
    Was this review helpful? 0
    , chennai
    Reviewed on Dec 13, 2019
  • Bajaj Allianz Car Insurance
    "Good friendly policy"
    0.5 4.0/5 "Great!"
    Long back I have done my claim for my car in TATA AIG. I took the car insurance from TATA AIG because we felt the policy is good and i'm comfortable with the company, am a happy customer. i didn't claim fully since its not a bumper to bumper policy.
    Was this review helpful? 2
    , bangalore
    Reviewed on Dec 11, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    When i purchased the car in the showroom where they have provided a car insurance policy from Bajaj Allianz. I have renewed the policy for the second year also but I have no idea about the premium amount and its a zero depreciation policy. They have informed me about the no claim bonus details. I have not made any claim experience till now.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 11, 2019
  • Chola Ms Car Insurance
    "Extremely bad."
    0.5 0.5/5 "Unacceptable"
    Extremely bad. Pathetic is the word. They will take you hard earned money in the name of insurance and when you go to claim for it first they will give you the lure of no claim bonus if you dare to claim and even if you insist for claim, Broad day light robbery is the only word to describe this insurance company.
    Was this review helpful? 4
    , ahmedabad
    Reviewed on Dec 05, 2019
  • ICICI Lombard Car Insurance
    "User friendly"
    0.5 5.0/5 "Blown Away!"
    They are very fast claim experience. I have not personally chosen the policy from ICICI Lombard. From the merchant side by default they have provided me a policy from this company. Recently I had applied the claim and I got up to 83%. Earlier it was a bumper to bumper covered policy now my car is more than 5 years old, so its not covered 100% now.
    Was this review helpful? 6
    , bangalore
    Reviewed on Nov 26, 2019
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