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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
  • National Insurance Car Insurance
    "GOOD"
    0.5 4.5/5 "Excellent!"
    I had no claim experience with NATIONAL INSURANCE and using from last more than 8-9 years. The premium paying was nominal than others when compared also the IDV value was nominal. The policy coverage is for bumper to bumper and also they are no claim, road side assistance is there.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jun 17, 2019
  • Iffco Tokio
    Iffco Tokio Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I am using the car insurance policy with IFFCO TOKIO GENERAL INSURANCE and using from last 2013 and i no claim experience also coverage is for bumper to bumper for full coverage. The premium and the IDV value is good compared to the others. There are benefits of road assistance is not there.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 16, 2019
  • review Car Insurance
    "Nice price"
    0.5 4.0/5 "Great!"
    They have provided me a good IDV value for the less premium amount. The Policybazaar people has taken the initiative they have assisting the policy while i purchasing the policy. I have paid the premium amount of Rs. 4500 for the IDV value of Rs. 3.5 lakhs. Its a comprehensive policy. They are provided me a no claim bonus and i do not have any claim experience till now.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 14, 2019
  • United India Car Insurance
    "Recommendable policy"
    0.5 3.0/5 "Satisfactory"
    Since my friend is working in United India hence i have chosen the car insurance policy from them. Since the car is 5 years old, they won't provide the zero depreciation policy and its a third party policy. I have paid the premium amount of Rs. 1800 and the premium is very less and the coverage amount is less than lakhs. I have got my no claim bonus and i don't have any claim experience with them. They have sent the hard copy of the documents to the customer's address without any request.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jun 14, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I had a claim experience with the card insurance policy holding with the ICICI LOMBARD GENERAL INSURANCE where the claim i got was 100%, the customer support is good. The premium paying through online it was higher. IDV value is good. Coverage is for zero dep. There was road side assistance is available.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 13, 2019
  • review Car Insurance
    "Value for money"
    0.5 5.0/5 "Blown Away!"
    I took my car insurance through an online channel from Kotak General. I chose this insurance company because of the premium is cheaper than others. I paid the premium around Rs. 17,000 for one year. I have a comprehensive plan as it covers my entire car parts and also it has a accidental cover. But the support team need improvement, however I got the IDV value around 8 lakhs for honda citi car.
    Was this review helpful? 0
    , kolkata
    Reviewed on Jun 13, 2019
  • National Insurance Car Insurance
    "Value for money"
    0.5 5.0/5 "Blown Away!"
    I availed car insurance with National Insurance company for that I paid the premium around Rs. 8000 for one year. I took comprehensive plan which cover for me and the vehicle. They do have road side assistance, 24 hours service. Whenever I go for the renewal they are providing no claim features its good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 12, 2019
  • ICICI Lombard Car Insurance
    "Reliable policy"
    0.5 5.0/5 "Blown Away!"
    I had a claim experience twice with ICICI lombard which is good and its a 100% cashless claim. They have processed the claim immediately. In my policy, i got a no claim bonus, road side assistance and its zero depreciation policy. I have been paying the premium amount of Rs. 15000 and the policy got expired last month and they have sent me a reminder alert and calls.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 11, 2019
  • HDFC Ergo Car Insurance
    "Good claim experience"
    0.5 4.0/5 "Great!"
    I faced a claim with HDFC ERGO, when my car glass got damaged I got the cashless garages within 18 days they have rectified the issue. I paid the premium of Rs. 11,900 for one year. I availed zero dep its covers all plastic, glass material. Even the insurance company got tied up with garages.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jun 11, 2019
  • ICICI Lombard Car Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    ICICI is the one of the top banker and the policy has tie up with ICICI hence i have chosen my car insurance policy with them. I pay the premium amount of Rs. 30000 and its not a 100% covered policy. I had a claim experience with them and it was not a cashless and I'm not satisfied with it. Compared to others, there are so many restrictions. They have a charged slip and they will verify everything then only they will return the money and the process also got delayed.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 11, 2019
  • ICICI Lombard Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have paid Rs.6800 for one year car policy with ICICI Lombard. I have Santro car which is 12 years old. It is a comprehensive third party insurance. The renewal process was very simple and never had any challenges. I am doing online renewal and the insurance paper sent on time. Out of 12 years claimed 3 times, the process was very smooth and easy. The garages are more for cashless.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 11, 2019
  • Oriental Insurance Car Insurance
    "Good Policy to use"
    0.5 3.0/5 "Satisfactory"
    I am paying the premium amount of Rs. 18000 for my car insurance policy which i taken from Oriental. I get a coverage amount of Rs. 3.50 lakhs and they are providing a cashless claim and till not applied for any claim. They have provided me a bumper to bumper and road side assistance and its not a zero depreciation policy.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jun 11, 2019
  • Reliance General Car Insurance
    "Very Good Policy"
    0.5 4.5/5 "Excellent!"
    Actually its a company lease car, hence with their interest, they have provided me a policy with Reliance. This is a first party and third party covered policy. Since the company is paying the premium, I'm not sure about the premium amount and coverage amount. I do not have any claim experience
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 09, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I had no claim experience with the ICICI LOMBARD GENERAL INSURANCE where i have been using the policy since from lat few years. The premium paid was nominal also the policy coverage is for bumper to bumper. There is a no claim bonus also the road side assistance is with this policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 08, 2019
  • HDFC Ergo Car Insurance
    "Good claim experience"
    0.5 4.0/5 "Great!"
    I claimed with HDFC Ergo because there was some scratches on my swift dezire car, due the parking area. On that time I just paid Rs. 1000 registration fee remaining amount around Rs. 28,000 was claimed from my car policy . However I paid the premium of Rs.9000 for zero depreciation plan.
    Was this review helpful? 1
    , delhi
    Reviewed on Jun 08, 2019
  • National Insurance Car Insurance
    "Good for money"
    0.5 5.0/5 "Blown Away!"
    I have Santro car it was manufactured in 2015, I took comprehensive plan its fully covered. I believe last time I paid Rs. 5500 of premium, however is no claim but they have road side assistance, 24 hours service with other benefits like no claim feature.
    Was this review helpful? 1
    , kochi
    Reviewed on Jun 06, 2019
  • Bajaj Allianz Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have purchased the car insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE and using it since from last one year. I had no claim experience with this policy and also policy coverage with this policy is for basic with this policy.
    Was this review helpful? 1
    , bhubaneshwar
    Reviewed on Jun 03, 2019
  • review Car Insurance
    "Policy is very good"
    0.5 5.0/5 "Blown Away!"
    Bought my car insurance from Kotak Mahindra Insurance. Not any particular reason for choosing the company. I have a claim experience. The given IDV value is Rs. 4.60 lakhs and i am satisfied with it. I have paid the premium amount of Rs. 12000. They are providing a no claim bonus, road side assistance and its a zero depreciation.
    Was this review helpful? 1
    , noida
    Reviewed on Jun 03, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I have been using the car insurance policy with the ICICI LOMBARD GENERAL INSURANCE where i have been using it since from last 1-2 years and i had no claim experience with this policy. The premium paid was nominal also the IDV value is good with this policy. There is a no claim bonus coverage also the bumper to bumper coverage is applicable.
    Was this review helpful? 1
    , chennai
    Reviewed on May 31, 2019
  • ICICI Lombard Car Insurance
    "Smart Protection"
    0.5 4.0/5 "Great!"
    I insured my car with ICICI Lombard I paid the cost of Rs. 14,000 it has the term of two years. I have zero depreciation cover, I got my policy paper on time. The insurer quoted the value of 80% from the total value. I have swift dezire car it was 2017 model.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 31, 2019
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