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How Car Insurance Calculator Gets You Best Coverage

A car insurance calculator is an online facility that enables you to get quotes on car insurance from multiple insurance companies in India. When you are looking to buy car insurance, the first thing to do would be to get familiarised with the different types of coverage available in the market. Once this is done, you should ideally compare insurance plans between providers to narrow down on the most suitable cover for your specific insurance needs.

Calculation Of Premium:

Car Insurance Calculator

The premium for car insurance is calculated based on several factors:

  • The Insured Declared Value (IDV) of the car
  • The cubic capacity of the vehicle’s engine
  • The year of manufacture of the car
  • The area of registration of the vehicle
  • The No Claim Bonus (NCB) accrued under the policy

When a brand new vehicle is driven out of a showroom, its value will start depreciating. Over a period of time, the depreciation will increase bringing down its IDV. In other words, an 10-year old car will have a much lower IDV than a brand new vehicle of the same make and model.

Although the premium for car insurance depends on the IDV of the vehicle itself, there are several other factors that come into play when calculating this value. So, we cannot conclude that it will be more expensive to insure new cars when compared to old ones.

Car insurance premium is calculated based on the formula given below:

Final quote = Own-damage premium + Third-party liability premium + premium for add-on covers - NCB and other discounts

The car insurance calculator available at neutral financial websites uses this generic formula that gives you a premium quote closest to the amount you will be paying when you buy a policy from a specific insurer.

Third-Party Liability Premium Is Fixed:

The Insurance Regulatory and Development Authority of India (IRDAI) decides the premium for third-party liability coverage under motor insurance on an annual basis. The values for the financial year 2017-18 are as mentioned below:

Private car engine capacity Premium from 1 April 2017
Below 1,000 cc Rs.2,055
More than 1,000 cc but less than 1,500 cc Rs.2,863
More than 1,500 cc Rs.7,890

Own-Damage Premium - What It Encompasses:

The own-damage premium in car insurance is based on the IDV of the vehicle that is, in turn, dependent on the age and depreciation of the car. Each insurer would have predefined guidelines on calculating this value.

Listed below are the key factors that affect your own-damage premium:

  1. The type of vehicle - The make and model of the car has a bearing on the premium quoted. For instance, high-end cars are more risky to insure as they are more prone to theft and it will be more expensive to repair damages on them. Hence, owners of these cars will have to bear higher premiums.
  2. Modifications to the vehicle - If you have made any alterations to the car it is important that you inform the insurance company of the same. Modifications to the vehicle can increase or decrease the risk to the insurer; so such changes will have to be reviewed by the insurance provider. There may be subsequent alterations in the premium as well. In case you fail to inform the insurer, they may not honour your next claim and void the coverage altogether!
  3. The type of fuel used in the vehicle - The fuel type used in the car affects its insurance premium. So pay close attention to this when you purchase a car.
  4. Coverage chosen - If you have taken limited insurance coverage your premium will be low. However, opting for a comprehensive car insurance policy with add-on covers will bring up the premium. So, pick the insurance coverage carefully by assessing your needs in detail.
  5. Insured Declared Value - The depreciation on every vehicle is fixed based on industry guidelines, as shown below:
Age of the car Percentage depreciation
Less than 6 months 5%
Between 6 months and 1 year 15%
Between 1 year and 2 years 20%
Between 2 years and 3 years 30%
Between 3 years and 4 years 40%
Between 4 years and 5 years 50%
Above 5 years This is calculated based on a mutual agreement between the insurer and the policyholder

The IDV of the vehicle is determined by the rate of depreciation mentioned above. The vehicle’s condition is also taken into account for the same. The assessment or survey is done by insurance surveyors or dealers.

  1. Discounts offered by the insurer - No Claim Bonus is a benefit offered to a policyholder who does not raise any claims during the policy term. This is like a reward for being a good driver. The NCB can translate into an irresistible discount of up to 50% on the renewal premium! So, it is recommended to preserve the NCB by not raising claims for small damages. The rate at which a car owner earns NCB is as detailed below:
Claim-free years NCB, as percentage of own-damage premium
1 year 20%
2 years 25%
3 years 35%
4 years 45%
5 years 50%

Another noteworthy discount is the premium reduction you are liable to receive by opting for a voluntary excess. This deductible is the amount you agree to pay upfront at the time of a car insurance claim. Although this brings down your renewal premium by a significant amount, you should be careful to not overstate this value, as you may have difficulty honouring the agreed payment at the time of a claim.

Insurance companies also give discounts to customers who have valid memberships in automobile associations across India. Age-based discounts, bundling discounts, and discounts for anti-theft device installation are other deductions offered on premium.

  1. Area of registration - If you stay in a locality where theft is common, you will have to pay higher premiums. Even parking your vehicle in a dangerous zone may jeopardise your eligibility for insurance coverage. Also, staying in an accident-prone area will attract higher car insurance premium.
  2. Customer demographics - Other factors that affect the premium are demographics such as the marital status, occupation, and gender of the customer.

Why Is It Important To Use A Car Insurance Premium Calculator?

As is the case with all financial products, it is very important to do a good amount of research before buying a car insurance policy. Listed below are some advantages of availing the services of this tool:

  1. It helps you make a better decision as far as insurance purchase is concerned. You will also have good knowledge of the coverage offered by different insurers and the corresponding costs.
  2. The entire policy comparison process is simplified to a great extent.
  3. You need not furnish any paperwork for policy comparison; hence, it is hassle-free.
  4. You can get an overall view of the available insurance plans in the market.
  5. Some websites enable you to go one step further and buy car insurance instantly with limited paperwork. You may also get attractive premium discounts for buying insurance online.

What Information Needs To Be Updated For Car Insurance Premium Calculation?

The following details are usually required to get quotes through the car insurance premium calculator:

  • Make and model of the car
  • State of registration and date
  • Year of manufacture of the car
  • Type of vehicle insurance, i.e., private or commercial

If you are buying insurance for a used car, you will have to update the details of the existing car insurance policy, details of previous ownership, and claim history. It is important that you furnish accurate information in the calculator facility; else you may not receive the best deals out there. Apart from these, you will also have to update some personal details such as your age, name, and profession.

What Is Car Insurance Renewal Premium Calculator?

The car insurance premium calculator facility can also be used at the time of policy renewal. In fact, it is highly encouraged that you look around for better deals in the market at the time of policy renewal. You can use the car insurance renewal premium calculator facility and get an idea of the coverage offered by different insurance companies and the corresponding costs.

However when you are looking to renew your policy, the premium is not the only thing that you should consider. It is important to understand the claim settlement history of the insurer and the efficiency of its customer service department.

You should also review your updated insurance needs and decide on the coverage you actually require at the time of renewal. During this exercise you may find out that a limited insurance cover would suffice for you for the next year. This way you can save on premium by cutting down on the coverage without actually having to shift insurers.

If you are planning to buy/renew auto insurance anytime soon, the car insurance calculator facility is an inevitable part of your purchase journey. You would be aware that this facility is offered without any additional charge at neutral financial websites. So it is imperative that you familiarise yourself with this tool and make a judicious purchase.

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Car Insurance Reviews

Page 1 of 50 1 2 3 4 5
  • Iffco Tokio Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was taken from Iffco Tokio. Through online i have purchased the policy because the premium amount is less and the coverage is high. I pay the premium amount of Rs. 6500 for that they are offering a coverage amount of Rs. 2.50 lakhs. I do not have any claim experience till now.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 17, 2019
  • New India
    New India Car Insurance
    "Excellent Policy"
    0.5 5.0/5 "Blown Away!"
    One of my friend is working in New India so with him i bought the policy. I pay the premium amount of Rs. 15000 and this is a bumper to bumper covered policy. I got the IDV value of Rs. 6 lakhs. I do not have any claim experience and i got the no claim bonus too.
    Was this review helpful? 0
    , dindigul
    Reviewed on Oct 14, 2019
  • Royal Sundaram Car Insurance
    "Very Nice Policy"
    0.5 5.0/5 "Blown Away!"
    For my car insurance, i'm paying the premium amount of Rs. 10000 every month. I took the car insurance from Royal Sundaram because the car taken showroom members have given this policy. The policy covered with bumper to bumper facility.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Oct 13, 2019
  • ICICI Lombard Car Insurance
    "Satisfactory"
    0.5 3.0/5 "Satisfactory"
    At the time of purchasing the car, I got an insurance from ICICI Lombard through the showroom which I have continued for 5 years but am not having car. It was satisfactory and had a neutral experience. I used to get reminder msg and calls for the policy renewal. I had a claim and which was dealt by showroom and the process was hassle free. Actually, the policy was bit costlier than the insured value of vehicle before 3years ago.
    Was this review helpful? 0
    , kanpur
    Reviewed on Oct 12, 2019
  • HDFC Ergo Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    HDFC ERGO given me a third party insurance and for one time, they have charged me only 6K. The policy validity is 4 years. Its a zero dep policy. Its good but I don't have claim experience. I have received the insurance paper through post. Overall good.
    Was this review helpful? 0
    , pune
    Reviewed on Oct 08, 2019
  • New India Car Insurance
    "Good Policy"
    0.5 2.0/5 "Expected more"
    My car insurance was taken from New India because the car dealer has provided me this policy. I had paid the premium amount of Rs. 33000 and this policy gives me a coverage of 100%. My claim experience is good and they had processed the claim in 24 hours.
    Was this review helpful? 0
    , bhopal
    Reviewed on Oct 04, 2019
  • United India Car Insurance
    "Better"
    0.5 4.0/5 "Great!"
    I have Hyundai car which is more than 18years, United India is charging me insurance fee around 3500rupees for one year policy. They are sending the insurance paper on time. Its a third party insurance. The claim is not applicable. IDV is less which can be better.
    Was this review helpful? 0
    , palakkad
    Reviewed on Sep 29, 2019
  • Reliance General Car Insurance
    "Easy and Good policy"
    0.5 5.0/5 "Blown Away!"
    I am having a car insurance from Reliance. When i met the accident, i sent a photo to them and the executive came to the place and they took the photo and they have provided me a claim amount of Rs. 1.50 lakhs but the total damage is Rs. 2.5 lakhs. They have given me a claim in 45 days.
    Was this review helpful? 0
    , erode
    Reviewed on Sep 24, 2019
  • United India Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    Currently I taken car policy from United India by paying the premium around Rs.14,000 for per annum for my toyoto car. It has bumper to bumper zero depreciation plan and they do have road side assistance, break down service, 24 hours service. The customer service is good interms of reminder. alerts.
    Was this review helpful? 0
    , vijayawada
    Reviewed on Sep 20, 2019
  • Iffco Tokio Car Insurance
    "Need improvement on the cash garages"
    0.5 4.0/5 "Great!"
    In 2017 I used Iffco Tokiyo for the car protection, the premium cost was economical. But they don't have cash less garages for certain demise hence I have moved other insurance company. The online option is very good for renewal and other purpose.
    Was this review helpful? 0
    , sonipat
    Reviewed on Sep 19, 2019
  • Iffco Tokio Car Insurance
    "Need improvement on the cash garages"
    0.5 4.0/5 "Great!"
    In 2017 I used Iffco Tokiyo for the car protection, the premium cost was economical. But they don't have cash less garages for certain demise hence I have moved other insurance company. The online option is very good for renewal and other purpose.
    Was this review helpful? 0
    , sonipat
    Reviewed on Sep 19, 2019
  • New India Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    For my Honda city car I took New India assurance, I used to pay Rs. 21,000 per annum they gave me insured value upto 70 to 75%. I got bumper to bumper zero depreciation it has the cash garages. There is no claim experience so far, the renewal process is very easy through online.
    Was this review helpful? 0
    , sonipat
    Reviewed on Sep 19, 2019
  • ICICI Lombard Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    I have chosen ICICI Lombard for a car insurance because am holding a salary account and the services are good. I got a first party insurance. I am having Maruti Suzuki Zen which is 8 years old. The IDV value is better. The policy is valid for one year and paid premium of Rs.2,500.
    Was this review helpful? 0
    , visakhapatnam
    Reviewed on Sep 17, 2019
  • SBI General Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    My car is insured with SBI General because its easy to renewal and main thing is the premium is not so high. The customer service is not so good and would suggest them to improve the service. I had a claim and the experience was average. The policy is valid upto 3 years.
    Was this review helpful? 0
    , faridabad
    Reviewed on Sep 17, 2019
  • Oriental Insurance Car Insurance
    "Good for car protection"
    0.5 5.0/5 "Blown Away!"
    I have maruthi 800 car which has the four wheeler policy of Oriental Insurance, my premium was around Rs. 8.000 for specific period. I took bumper to bumper with 100% of coverage, the renewal process is very easy. I usually visit to the Oriental branch, I used to get the policy copy. They do have road side assistance, 24 hours service etc.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 14, 2019
  • Chola Ms Car Insurance
    "No claim Experience"
    0.5 3.0/5 "Satisfactory"
    I have taken car insurance from Cholamandalam insurance. They have financed for my vehicle hence they have provided the policy from them. Long back, i have renewing the policy with the same company. They have provided me a coverage value of Rs. 2,5 lakhs and i do not have any claim experience till now.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 14, 2019
  • National Insurance Car Insurance
    "Good Experience"
    0.5 5.0/5 "Blown Away!"
    In 2016, I had a car insurance with National Insurance, at the time I done a claim because my car front bumper got damaged, hence I got the cashless garage option then within 2 to 3 days I got my car back with proper condition, it was also good insurance company.
    Was this review helpful? 0
    , panipat
    Reviewed on Sep 13, 2019
  • HDFC Ergo Car Insurance
    "Good Protection "
    0.5 5.0/5 "Blown Away!"
    Currently I have car insurance with HDFC Ergo, I paid the premium around Rs. 10,000 for one year plan, it gives bumper to bumper protection for my 2015 maruthi wagon R car, they are providing good IDV value based on manufacturing year. The renewal process was happened easily through the dealer.
    Was this review helpful? 0
    , panipat
    Reviewed on Sep 13, 2019
  • ICICI Lombard Car Insurance
    "Good for car policy"
    0.5 4.0/5 "Great!"
    I have four wheeler policy with ICICI Lombard, the premium is based on the claim or else its reliable. They do have third party insurance, road side assistance, 24 hours, I got the cashless claim when I met with an accident but they covered 50% of plastic only remaining amount I paid it.
    Was this review helpful? 0
    , gurgaon
    Reviewed on Sep 10, 2019
  • United India Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    United India renewal process is very easy and they give reminder call before the due date. I paid Rs.7800 for per annum for my bumper to bumper plan, they are providing road side assistance, 24 hours. They do have no claim bonus for my renewal. The service is prompt I able to reach them at any time.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Sep 09, 2019
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