• Car Insurance Premium Calculator

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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 1,500 cc 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

    Car Insurance Articles:

    How you can save on your car insurance premium

    Car insurance is a necessity as per the law in India. However, depending upon the coverage opted for, it is something that can really create a dent in your monthly budget. However, we have some good news...it is actually possible to save on your car insurance premium, provided you follow a few simple techniques. This article educates you on the things you can do to save money on car insurance.
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    Have you thought about switching car insurance?

    Sometimes, being loyal to your car insurance company may not be the best thing to do. You should ideally explore the other options available in the market at the time of policy renewal. You can compare policies between insurers at neutral financial websites and determine the most appropriate policy for your needs. This article takes you through the entire process of switching car insurance providers.
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    All you need to know about No Claim Bonus in car insurance

    No Claim Bonus (NCB) is one of the most coveted discounts that a car owner can accrue. It is offered to a driver by the insurance company for observing claim-free years while protected by car insurance. The No Claim Bonus can result in a discount of up to 50% on car insurance renewal premium. It can also be preserved when you switch insurers through an NCB retention certificate. Learn all about NCB through this article.
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    Why go for reimbursement claims when you can opt for cashless car insurance?

    Cashless car insurance is a revolutionary concept in the auto insurance domain. If you have an auto insurance policy with an insurer offering cashless claim settlement facility, you stand to gain big. In the event of an accident, you can get your car repaired at any of the network garages affiliated to the insurance provider. You will not be required to pay for the repair work upfront. The settlement of the bills will be done by the insurer directly with the network garage. You will only have to pay a minimal part of the claim amount that corresponds to deductibles and depreciation.
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    What are the IRDA regulations for car insurance?

    In India, all insurance companies have to adhere to the regulations formulated by the Insurance Regulatory and Development Authority (IRDA). The IRDA guidelines for motor insurance include customer turnaround times, third-party liability premiums, and NCB rules. As a car owner, you should also be aware of the nuances in the fine print of insurance policies that are based on the IRDA regulations. This page offers you a comprehensive insight on the IRDA guidelines that govern the insurance industry.
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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
    • National Insurance Car Insurance
      "Its Average"
      0.5 4.0/5 "Great!"
      National Insurance have not reached me to renew the policy, their customer service should be improved. I paid the premium around Rs.2500 for one year, I have insured Mercedes car its a second hand car. IDV value was good with third party cover and other features.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 20, 2018
    • ICICI Lombard Car Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I have recently renewed my car insurance from the ICICI LOMBARD GENERAL INSURANCE company. I have paid Rs,14,000 to renew the policy last year. I never got any claim experience with this policy. This policy has the validity up to a year. I would say it is a good policy to use.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 20, 2018
    • National Insurance Car Insurance
      "Average service"
      0.5 1.0/5 "Really Bad"
      I have directly taken a car insurance from National insurance on august month. The payments are generally through cheques but I feel they need to improve the response. There is no proper intimations regarding the payments. It is a fine experience with National car insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • Bajaj Allianz Car Insurance
      "Good insurance"
      0.5 4.5/5 "Excellent!"
      I have taken the car insurance with Bajaj Allianz General Insurance through online channel. The customer service was good. I did a comparison and found the offers are best with them. The premium and benefits are good compared with other insurance companies. I paid 6,850 rupees per annum.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Feb 20, 2018
    • ICICI Lombard Car Insurance
      "Good"
      0.5 4.0/5 "Great!"
      Previously I had a car insurance with ICICI Lombard and it was suggested by the dealer. I have purchased Maruti Wagnor. I don't have any claim experience till now. I paid around 8000 rupees to purchase this insurance. The IDV and policy coverage is good.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Feb 20, 2018
    • Oriental Insurance Car Insurance
      "Good service"
      0.5 4.0/5 "Great!"
      I have Car Insurance with Oriental Insurance six months ago,i have no claim experience so far,the payment is done directly at the counter.The model of the card is 2003,the policy coverage amount is fluctuating depends on the car value at the time of service.The premium amount is 4500.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 20, 2018
    • ICICI Lombard Car Insurance
      "Good banking"
      0.5 5.0/5 "Blown Away!"
      I have taken Car Insurance with ICICI Lombard,the premkum amount is 8000 per year.The policy coverage is zero depreciation.I have no claim experience with them.I have no claim experience till date.They had processed the insurance within the TAT.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 20, 2018
    • Reliance General Car Insurance
      "Good policy to use"
      0.5 5.0/5 "Blown Away!"
      For the past 3 years I am renewing my car from the RELIANCE GENERAL INSURANCE company,. I paid Rs,20,000 to renew the policy last year. The policy coverage is good with the policy . The cashless garages options is good with the RELIANCE GENERAL INSURANCE car policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 19, 2018
    • Royal Sundaram Car Insurance
      "Car insurance with ROYAL SUNDARAM "
      0.5 4.0/5 "Great!"
      I have taken a car insurance from ROYAL SUNDARAM GENERAL INSURANCE. The provide bumber to bumber, cashless garages, road assistance. Every year i have to renew the policy and first i made the payment to the showroom itself. Its a good policy.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 17, 2018
    • Tata AIG Car Insurance
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have four wheeler, which got insured with the Tata AIG general insurance company. I have not faced any issues with them and the coverage value is good one too. Online portal of the Tata AIG general insurance company.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 17, 2018
    • HDFC Ergo Car Insurance
      "Good Service and Online Support"
      0.5 4.5/5 "Excellent!"
      I took a Car Insurance from HDFC Ergo and the process was really simple and customer friendly. Also during the Insurance tenure I transferred ownership of my Car and I got an endorsement of my Car Insurance Policy on new owner name done ONLINE without any hassles.
      Was this review helpful? 0
      , pune
      Reviewed on Feb 16, 2018
    • United India Car Insurance
      "Better"
      0.5 4.0/5 "Great!"
      I took my car insurance from United India Insurance by last year. It was good experience and suggested by the dealer. Once I go for claim only can come to know about the service. They are giving bumper to bumper offer. I paid 8K to purchase this insurance.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • Oriental Insurance Car Insurance
      "Wonderful"
      0.5 5.0/5 "Blown Away!"
      I have faced some claims with the Oriental insurance company. Premium is very nominal one with them and the claim got completed on immediate basis. Everything is better one with the the Oriental insurance company.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2018
    • Reliance General Car Insurance
      "Wonderful"
      0.5 5.0/5 "Blown Away!"
      I have insured my car with the Reliance general insurance company. I have got the two claims , which got processed through them. Everything is excellent one with the Reliance general insurance company. Claim processing were done in easy manner with them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2018
    • National Insurance Car Insurance
      "Its Best"
      0.5 4.0/5 "Great!"
      I took Car Insurance from National, the premium was economical compared to other competitor. IDV value Rs. 4.85 lakhs for my Maruthi car with third party cover, road side assistance. May thing I like in National Insurance, they are providing cashless service and the premium was standard.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 15, 2018
    • Future Generali Car Insurance
      "Very good service"
      0.5 4.0/5 "Great!"
      I got the claim experience with the FUTURE GENERALI GENERAL CAR INSURANCE , I have got the settlement within a week time, so that was the reason i have choose the FUTURE GENERALI GENERAL INSURANCE for my car . The customer support gives the intimation to renew the policy before the due date.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 15, 2018
    • National Insurance Car Insurance
      "Best Policy to hold"
      0.5 4.0/5 "Great!"
      Car Insurance premium is good, they gave me policy cover based on the age of the vehicle. National Insurance sent me the policy copy on time. My spouse have been taking insurance from same company for long term because they give third party, road side assistance.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 15, 2018
    • Royal Sundaram Car Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Car Insurance with Royal sundaram,the premium amount is 5000 per annum.The payment is done through a different modes as per the requirement.The policy coverall amount is 70% for fibre materials and for other its 50-60% ,i have claim experiences once they had covered completely.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 15, 2018
    • New India Car Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I have taken a Car Insurance with New India Assurance with them,the premium amount is 7000 paid by cheque per annum.I have no claim experience with em till date.The policy coverage amount is three lakhs,I have taken this long back,whenever i approach them they respond on time.
      Was this review helpful? 0
      , kanpur
      Reviewed on Feb 14, 2018
    • Oriental Insurance Car Insurance
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken a car insurance with Oriental Insurance by last year. I don't have any claim experience. I paid 17,000 rupees for one year and purchased this insurance. It was purchased through online. They offered a good IDV value and benefits.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 14, 2018
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