Insurance is like a spare tyre. You may not require it, but not having one is not an option.

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
Depreciation Percentage 20% 83,200
Insured Declared Value (IDV) 3,32,800
Own Damage Premium 1.970% 6556
NCB discounts 20% 1311
Total OD Premium 5425
Personal Accident Cover 100
Legal Liability Paid to driver 50
Compulsory Third Party Cover 1110
Net Premium 6505
GST @ 18% 18% 1171
Total premium 7676

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 2017
Less than 1,000 cc Rs.2,055
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 more costly 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

Car Insurance Calculator Reviews

Page 1 of 50 1 2 3 4 5
  • Tata AIG Car Insurance
    "Satisfied policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG is the best company to take the car insurance. Since long time i have taken this insurance. The customer care people used to call me to renew the policy and they used to policy renewal letter. I will do payment through online. Several times i have claimed the policy and i have received very good response.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2019
  • Universal Sompo Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this insurance policy a long time back and it has been a good insurance policy. I had been paying the premium online and the payment method has been convenient. There has been a claim made once and the claiming method has been simple.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2019
  • New India Car Insurance
    "Comprehensive benefit policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was taken from New India. I don't speak with their customer care since i don't require it. I had a claim experience which is a easy process without any tension. As per their policy, the maximum claim amount settled. Since they are providing good services i have opted this policy. They have given me a road side assistance and bumper to bumper facility.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • Bajaj Allianz Car Insurance
    "Good to Go with Bajaj"
    0.5 4.0/5 "Great!"
    The conditions and the insured which they are providing is good, I have insured Ford Car with Bajaj Allianz, the premium amount is reasonable but they can reduce it. Its 1.5 year old year but still the insurer providing 24 hours service, cash less garages and they have tie up with many centers, the response is great.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • ICICI Lombard Car Insurance
    "Premium should be standard as per market"
    0.5 4.0/5 "Great!"
    I never used the policy if something happen I claim it, I didn't interact with the customer care but I get the reminder message for car renewal. I have insured my maruthi Suzuki riz with ICICI Lombard, The premium is higher but still they are good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 14, 2019
  • HDFC Ergo Car Insurance
    "Very good"
    0.5 5.0/5 "Blown Away!"
    Even my car was insured with HDFC Ergo. It is a second-end car and have chosen the third party insurance. I have not done any claim so far. The premium is reasonable. It offers bumper to bumper facility and road side assistance. The policy period is 2 years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 14, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 1
    , tirupur
    Reviewed on Jan 10, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 10, 2019
  • National Insurance Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this Insurance policy for my Maruti Car and i had been paying the premium on an annual basis. The premium amount has not been too high and there has been cash less garages available with this insurance policy. Their customer support has also been helpful at times.
    Was this review helpful? 1
    , pune
    Reviewed on Jan 09, 2019
  • ICICI Lombard Car Insurance
    "Nice Policy"
    0.5 4.0/5 "Great!"
    My car was insured with ICICI Lombard. Last year i have purchased this insurance policy. My wife has referred me about this policy. I pay the premium amount of Rs. 13500. They have given me a convenient IDV value. I had no claim experience so far.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Need to improve the service"
    0.5 3.0/5 "Satisfactory"
    I'm not satisfied with the service provided by new India. I have bought the car insurance policy. They closed their branch on every weekends hence its difficult to renew the policy. I have been paying the premium amount of Rs. 14000 which is a competitive price. They have given the IDV value of Rs. 1.50 lakhs.
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Average Car Insurance"
    0.5 3.0/5 "Satisfactory"
    My car insured with the New India Insurance company. I have been renewing the policy with the same company for 3 years. I have paid the premium amount of Rs. 7000 and they have offered me a satisfied coverage value. The documentation process was fine
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • review Car Insurance
    "Its Good"
    0.5 3.5/5 "Pretty good"
    Last year I had car policy with Bharthi axa whenever I try to renew it ask my poliy no, whenever I mention the same, it shows the its incorrect. If I try to reach the customer care its not reachable. I done the claim, some minor damage back side of the car, they have processing fee 1500. Remaining all taken care by the insurer.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Great Policy"
    0.5 4.0/5 "Great!"
    ICICI Lombard has a good brand value hence i have selected the car insurance policy with this card and the dealer has also recommended about this policy. I pay the premium amount of Rs. 9000 and this is a 100% coverage with bumper to bumper facility. I'm not sure about the IDV value. Its easy to renew the policy.
    Was this review helpful? 2
    , new delhi
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    Previously my car was insured was with ICICI Lombard and it was offered by the showroom. I got a call from the representative for the policy renewal as reminder. I got the insurance paper. I have not done done a claim. It is a comprehensive with zero dep. The premium was high so changed my insurer.
    Was this review helpful? 1
    , mumbai
    Reviewed on Jan 08, 2019
  • Future Generali Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have taken a car insurance from Future Generali through online portal. The premium was reasonable and also they have provide bumper to bumper facility. The policy period is one year. There is no interaction between the customer service. I just gave my car for the claim so no experience.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 08, 2019
  • Oriental Insurance Car Insurance
    "Good insurance company"
    0.5 2.0/5 "Expected more"
    Dealer has referred me about this oriental car insurance when i purchase the vehicle. They have rejected the claim since the copy of FIT is not available. They have given me a coverage value upto Rs. 6 lakhs. For the past 3 years i have been renewed the policy with the same company.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Iffco Tokio Car Insurance
    "Good Policy and you can try"
    0.5 4.0/5 "Great!"
    Two months before, i have taken my car insurance policy with Iffco Tokio. Its a PAN India agreement policy for my Maruti Car. I don't remember about the coverage value. This is a zero depreciation policy. I paid the premium amount of Rs. 6500. I have not seen any add on and cashless garage facility.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Its Excellent"
    0.5 4.0/5 "Great!"
    My brother is working with Reliance hence I took my two wheeler policy from this insurance company. I have hyundai accent car, they are providing cash less garages for the damage. I have zero depreciation bumper to bumper policy for the term of one year.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance policy was taken with reliance. The dealer has provided me a policy with this policy. This is a 100% coverage value which covers the bumper to bumper facility, They have given me a IDV value of Rs. 11 lakhs. I pay the premium amount of RS. 33000.
    Was this review helpful? 0
    , thane
    Reviewed on Jan 04, 2019
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