Motor Insurance Calculator

The wide range of motor insurance products offered by numerous leading insurance companies in India make it very difficult for a layman to decide on the most appropriate policy. So when looking to buy motor insurance, it is quite possible that you may reach a state of confusion.

Almost all general insurance companies today offer you the facility to compare policies online and buy a suitable cover. They also enable you to calculate the premium for a plan using the motor insurance calculator facility. This is a very useful service, as customers can get an estimate of the amount they will be setting aside towards motor insurance per year.

Benefits Of Using A Motor Insurance Calculator

The motor insurance premium calculator tool is advantageous in the following ways:

  • When you are planning to buy motor insurance, you can first use the tool and calculate the premium for a particular plan. This way, the overall process of policy purchase becomes quick and effortless.
  • When you use the motor insurance calculator tool and , you are not pressurised by insurance agents or any other such middlemen to complete the process in haste. Essentially, the tool gives you complete freedom to make a purchase decision in a well-informed manner.
  • You can alter the variables provided as input to the premium calculator tool and see the change in premium. This helps you make an informed decision on the coverage when making the final purchase.

How To Use The Motor Insurance Premium Calculator Tool

The motor insurance premium calculator facility is extended to new and used cars alike. In order to determine the approximate premium for a specific motor insurance plan, you will be required to provide the following details as input:

  • The make and model of the vehicle
  • The subtype of the vehicle
  • The city of registration
  • The age of the car
  • Your name and mobile number

You should then click on the ‘Calculate Premium’ button to get a quick quote. The premium quote usually considers the complete No Claim Bonus (NCB) and uses a system-generated IDV. This premium is just an estimated value and the actual amount may differ.

How Do Insurers Calculate Motor Insurance Premiums?

Motor insurance premium is based on a set of factors, the most important of them being the Insured Declared Value (IDV) of the vehicle. Here is a detailed description of the factors that influence motor insurance premium:

  1. Cubic capacity of the vehicle - The third-party liability premium for motor insurance is a value fixed by the Insurance Regulatory and Development Authority of India (IRDA) on an annual basis. It depends on the engine capacity of the vehicle. The values for the financial year 2017-18 are as follows:

For private cars:

Engine capacity Premium
Up to 1,000 cc Rs.2,055
More than 1,000 cc but not greater than 1,500 cc Rs.2,863
More than 1,500 cc Rs.7,890

For two-wheelers:

Engine capacity Premium
Up to 75 cc Rs.569
More than 75 cc but not greater than 150 cc Rs.720
More than 150 cc but not greater than 350 cc Rs.887
More than 350 cc Rs.1,019

The values for goods carrying public and private vehicles are different from these.

  1. Depreciation of vehicle parts - The depreciation of a vehicle is a significant factor that governs the own-damage premium for its insurance. Every vehicle undergoes depreciation with age, as shown in the table below:
Age of the vehicle Percentage depreciation
6 months or lesser 5%
Above 6 months but lesser than 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 IDV is essentially the market value of the vehicle less depreciation with age. As the vehicle gets older, the depreciation is higher. This leads to a lower IDV.

Since own-damage premium is a percentage of the IDV, it will be lower for older vehicles.

  1. Model and make of the car - The parts of high-end vehicles will be harder to procure and more expensive to replace. These vehicles are also more likely to be involved in a theft. Hence, the owner of an expensive vehicle will have to pay a higher premium for its insurance.
  2. The place of registration of the vehicle - If the vehicle is being used in an area where accidents are common, then it would cost more to insure it. Moreover, parking the vehicle in an area that is prone to thefts would also hike the premium for its motor insurance.
  3. Age of the owner-driver - Vehicle owners below the age of 25 years are considered to be more risky to cover. Hence, these individuals will have to bear higher motor insurance premiums.
  4. Fuel types - It would be more expensive to buy insurance coverage for a vehicle that is fitted with a CNG/LPG kit.
  5. Discounts - Motor insurance companies offer numerous discounts to customers. If a customer is eligible for a discount, it will bring down his/her motor insurance premium considerably.

The discounts that are usually offered are described below:

  • Profession-based discounts - Government servants, people working as defence personnel, and doctors get special discounts on motor insurance premiums.
  • No Claim Bonus - If a policyholder has not raised any claims in a year, he/she is eligible to receive a bonus that can bring down his/her motor insurance renewal premium. This is referred to as the No Claim Bonus (NCB), and is a very attractive benefit in motor insurance.
  • Voluntary deductibles/excesses - Voluntary deductibles are the components of a claim amount that the policyholder chooses to pay. This is decided at the time of policy inception. Opting for higher voluntary deductibles implies that the premium for the motor insurance policy will be lower.
  • Anti-theft device discount - The Automotive Research Association of India (ARAI) has a specific set of approved anti-theft devices. Installing any of these in a vehicle can bring down its motor insurance premium considerably. Having additional security gear in the vehicle also implies that it is less likely to be involved in a theft. So insurers encourage the use of such devices by offering premium discounts to these vehicle owners.
  • Discounts for online purchase - Most insurance companies allow you to buy motor insurance online. The benefits of online purchase are many, the most important one among them being the fact that online policies are much cheaper than offline ones. When an insurer sells a policy online, it does away with the processing and distribution costs that are usually associated with offline sales through insurance agents. These benefits are, in turn, passed on to the customer in the form of premium discounts.

In addition to the above, it is advisable to renew your motor insurance on time. Renewing the policy before the expiry date ensures that you receive the best price on insurance. Delaying the renewal beyond a specific period of time (usually 3 months) may also result in a situation wherein you lose your hard-earned NCB.

Motor Insurance Calculator FAQs:

  1. What is the formula for calculating motor insurance premium?

    The formula for calculating the premium for motor insurance is very simple:

    Total premium = Own-damage premium + Third-party liability premium + Cost of add-on covers - Discounts

  2. Can I use motor insurance calculator when renewing my policy?

    The motor insurance calculator tool can be used at the time of buying motor insurance for the first time. In case you are someone looking to renew your insurance policy, you can use the motor insurance renewal premium calculator and arrive at a quote. The tool is equally simple and hassle-free.

  3. Why is there a difference between the motor insurance premium calculator quote and the actual premium charged?

    The difference you see between the actual premium and the quote from the motor insurance premium calculator tool is purely based on the way in which premium is calculated by the company.

    Insurance risk assessment is governed by statistics and historical records of accidents of the customer. After the insurer obtains all the required information about the customer, it will analyse the data and predict whether the applicant is likely to raise a claim under the policy. With higher probability of claim, the premium will be higher as well. This assessment is done by the underwriting department of the insurer. So, the final value of premium the company offers is likely to differ from the quote provided by the calculator tool.

  4. What is cubic capacity of a vehicle?

    The capacity of the vehicle’s engine is referred to as its cubic capacity. It affects the premium for the third-party insurance cover. So, for vehicles with higher cubic capacity, the motor insurance third-party liability premium will be higher.

  5. I have heard that I can get a premium discount if I am part of some automobile associations. Is this true?

    Yes, this is true. If you are a member of the Automobile Association of India (AAI) or any of its regional wings, you are eligible for a motor insurance premium discount.

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Motor Insurance Calculator Reviews

Page 1 of 50 1 2 3 4 5
  • Universal Sompo Car Insurance
    "Good Insurance"
    0.5 5.0/5 "Blown Away!"
    Taken my car insurance from Universal Sompo because the premium is less when i compared to other insurance provider, they have provided me a IDV value of Rs. 4 lakh. When i have done the cashless claim, they have sanctioned in 2 days. I'm getting renewal message in prior when the policy is getting lapsed. This is a first party insurance policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 20, 2020
  • Reliance General
    Reliance General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    My friend has referred me about the car insurance from Reliance. I pay the premium amount of Rs. 10,200 for this policy. This is a third party insurance. My friend is working as a agent and he will renew the policy. I have not approached them for any kind of claim. They use to send the reminders to renew the policy.
    Was this review helpful? 0
    , tirupur
    Reviewed on Feb 20, 2020
  • Oriental Insurance Car Insurance
    "One of the best policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was selected from Oriental insurance since the branch office is located to nearby my office. I pay the premium amount of Rs. 6000 for that they are providing me a IDV value of Rs. 2.8 lakhs. This is a first party insurance. Even though i don't have any claim experience, they have not provided me any no claim bonus.
    Was this review helpful? 0
    , guwahati
    Reviewed on Feb 19, 2020
  • National Insurance Car Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    For the economical and low premium purpose, i have chosen the two wheeler insurance from National. I pay the premium amount of Rs. 7000 every year and they are giving the IDV value of Rs. 4 lakh. I used to renew the policy in the branch nearby located to my place. I have no claim experience till now.
    Was this review helpful? 1
    , kolkata
    Reviewed on Jan 30, 2020
  • National Insurance Car Insurance
    "Excellent policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG car insurance is pretty awesome policy. So I have taken my car insurance from this company because they are providing me a bumper to bumper offer, comprehensive policy even if the car is 7 years old and this is the only company who provides this facility. To apply the claim is very easy in a single call. They have provided me 100% claim.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 28, 2020
  • United India Car Insurance
    "Secure and fast claim"
    0.5 5.0/5 "Blown Away!"
    My car insurance was purchased from United India and i have been renewing the policy with the same company for last 5 years. My claim experience is very fast and there is no struggle in getting the claim. The person will come to the spot by the next day once we applied the claim. I got the claim upto 90%. I have been receiving the no claim bonus also.
    Was this review helpful? 1
    , kochi
    Reviewed on Jan 22, 2020
  • Royal Sundaram Car Insurance
    "Money waste policy"
    0.5 1.0/5 "Really Bad"
    I have taken my car insurance from Royal Sundaram at earlier but I'm not satisfied with their services. When i applied for my claim, they have taken most of the part and they didn't provide the cashless claim in their garages. Quality of service is not that much good. I bought the policy through online. They didn't promised their word.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 21, 2020
  • Oriental Insurance Car Insurance
    "Need to improve the service"
    0.5 4.0/5 "Great!"
    ORIENTAL INSURANE has provided a car insurance and they have provided me a better offer with the better quotation including the bumper to bumper offer so that i took the same and till now i never spoke with the customer care also. I have not approached for them for any claim. They have offered me a coverage value of Rs. 3.5L. I have renewed the policy in online.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 21, 2020
  • 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? 1
    , jaipur
    Reviewed on Jan 16, 2020
  • 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? 2
    , 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? 1
    , 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? 1
    , 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? 2
    , 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? 2
    , 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
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