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

Motor Insurance Calculator

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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 buy insurance online, 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.

Motor Insurance Calculator Reviews

Page 1 of 50 1 2 3 4 5
  • 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
  • HDFC Ergo Car Insurance
    "Good service provider"
    0.5 4.5/5 "Excellent!"
    The reason to avail HDFC Ergo policy, my banker have suggest this insurer for my car. They gave me the best insured value around Rs. 6 lakhs based on the vehicle age. I have Hyundai I20 car, they are providing 24/7 helpline and cashless service.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 04, 2019
  • ICICI Lombard Car Insurance
    "Good Policy to take"
    0.5 3.0/5 "Satisfactory"
    My car was insured with ICICI Lombard. I pay the premium amount of Rs. 22000 and i have been renewing the policy continuously for 2 years. They have provided me a no claim bonus. Its covered with bumper to bumper facility. My dealer has recommended me about this policy when i purchase a car.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 03, 2019
  • Iffco Tokio Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance with IFFCO TOKYO from last 1 year, there was no claim experience so far with this insurance policy. I pay a premium of Rs 5500 for this car insurance. This is a first party insurance with 0% depreciation and the coverage value is good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 03, 2019
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