Car Insurance Premium Calculator

Car insurance premium calculator is a very helpful tool for the insurance buyers to determine how much they need to pay for the benefits availed. Basically, it is used to calculate the car insurance premium and get various quotes from different motor insurance providers based on the information provided.

With online car insurance calculator, it becomes easier to select the best car insurance policy. It is also known as Car Insurance Renewal Premium Calculator, as it can be used to find the cost of premium at the time of renewal.

Running from pillar to post to meet insurance agents from different providers and asking them to help in comparing the plans is no longer required. Why run from here and there, when everything is possible in a matter of a few clicks. All that is required is to submit the car registration number and other required details and get free quotes from top motor insurance companies in India.

Using the car insurance calculator, one can choose the right car insurance policy based on the premium cost, features, and other benefits. It is a simple method to find a car insurance policy according to one’s need and preferences.

What is Car Insurance Premium Calculator?

Car Insurance Premium Calculator helps in calculating the car insurance premium in a cost-effective manner. It also helps in making the right decision at the time of purchasing car insurance online. There is no need to pay anything to derive the premium cost while comparing car insurance online.

It is a time saving and cost-effective method of buying insurance for both private and commercial vehicles. By providing personal details and vehicle information, one can compare car insurance premium rates online from different companies and pick the most adequate one.

How to Calculate Car Insurance using a Car Insurance Premium Calculator?

One can use online car insurance calculator without any assistance in a simple and straightforward manner. Car insurance quotes from top vehicle insurance providers will be provided depending on the inputs provided.

Following details need to be filled in car insurance calculator in order to calculate the premium-

  • Car Registration Number
  • RTO
  • Car Registration Year
  • Car Variant
  • Manufacturer
  • Fuel type and so on

The only thing that one needs to be cautious of is to provide accurate information and derive the cost of premium from top insurers. One can either select or reject it and make the payment upon satisfaction.

Factors that Affect the Car Insurance Price

Mentioned below are the factors affecting car insurance premium –

  • IDV of the insured vehicle
  • No-Claim-Discount
  • Personal details of the policyholder
  • Insured’s profession/nature of work
  • Cubic capacity of the vehicle
  • Car make and model
  • Fuel type
  • Geographical zone
  • Vehicle’s age
  • Deductibles
  • Car accessories
  • Installation of the anti-theft device
  • Driving record

How to Calculate Premium for New & Old Cars?

The following information needs to be provided while calculating car insurance premium online for old and new cars with car insurance calculator –

For New Cars –

  • Car details and the name of the car manufacturer
  • Make and model of the car
  • Type of the car
  • Date and the state of registration
  • City & RTO
  • Fuel type
  • The year of manufacture

For Old and Used Cars

  • Type of the car
  • Fuel type – CNG, Diesel or Petrol
  • Claim history
  • Depreciation value
  • Details of the last policy
  • For second-hand cars, details of the owner are required

Benefits of Car Insurance Premium Calculator:

Car insurance calculator helps in making an informed decision. There are numerous benefits that are listed below-

  • It saves a lot of time and effort that goes in doing the manual calculations
  • It helps in making an informed choice
  • All the information that is required is already available in the insurer’s website
  • A hassle-free process to compare car insurance online and choose the best car insurance policy
  • It helps to understand different parameters that affect the cost of car insurance premium
  • Get car insurance quotes within a few minutes
  • Easy and convenience to purchase it on the go
  • Using car insurance calculator tool, one can see how premium changes with the variables
  • Hassle-free and paperless process

How to Buy Car Insurance Policy after Using Car Insurance Premium Calculator?

Be it for private or commercial vehicles, or new and old cars, the process to buy car insurance online using online car insurance calculator tool goes as follows-

  • Checking it Online- Purchasing car insurance online is the most time-saving, effective and convenient methods of getting a policy.
  • Comparing on the Aggregator Site – One can compare different car insurance plans online and calculate premium using vehicle insurance calculator. By comparing car insurance prices from different providers, one can easily pick the most adequate one.
  • Seeking Expert’s Advice- After zeroing down on a few providers, one can also seek expert advice over the call. Once all the issues are addressed, payment can be made and the policy will be emailed to the proposer.

Dos and Don’ts of Car Insurance Premium Calculation-

Do’s Dont’s
· Making claim for major damages only. Let’s say for damages above Rs. 15000. Sometimes, making a small claim can nullify the No-claim-discount at the time of premium calculation. · Avoid claiming for small damages. It will affect the No-claim-discount while calculating premium at the time of car insurance renewal.
· Renewing car insurance before the due date reflects positively at the time of premium calculation. · There should be no gap in policy renewal. It reflects negatively on the premium calculation.
· Choosing car insurance policy based on the add-on covers while calculating the premium. · Not choosing relevant add-on covers while calculating the premium using online car insurance calculator
· Continuing with the same insurer helps in accruing more discounts at the time of renewal. · Buying car insurance from a new provider every time.
· Choosing the best car insurance policy based on the car make and model. Some insurers will offer better plans for basic models, while some will offer better plans for luxury cars. Their premium calculation may also differ due to these reasons. · Blindly choosing any car insurance policy without considering the car make and model. Car insurance premium calculator is a great tool to help in calculating car insurance premium online and finding the best car insurance in India.

How Can a Number Of Claims Affect Premium Calculations?

Every company has its own policies. Premium calculations may vary from one insurer to another, once a claim is made by the insured-

Some insurance companies increase premium rates for all the claims-

  • Be it an accidental claim
  • Be it a theft claim
  • Own damage claim
  • Third-party claim

If no claims were made during the policy period, then the insured is entitled to a No-claim-discount at the time of policy renewal.

If one buys No-claim-bonus protection cover, then NCB will be protected even if the insured makes a claim. Although, there is a limit applicable to the number of claims.NCB protection cover can help reducing car insurance premium rates at the time of renewal. As the premium amount remains unaffected even after making a claim.

Some insurers may give a concession in the following circumstances-

  • If the claim was made only for a small damage
  • If the insured was not at fault
  • If it was the first collision or accident
  • If the insured maintains a good driving record

Car Insurance Premium is Calculated on the basis of the below-mentioned factors:

Car insurance premium is determined by a number of factors. Have a quick rundown of some of the common parameters that are taken into consideration-

1. Vehicle Type

Insurance premium for small cars is definitely lesser than the luxurious cars. Car fuel type – whether it runs on petrol, diesel or CNG that also affects the car insurance premium. Moreover, car modifications majorly affect the cost of the premium.

2. Type of Cover

It is mandatory to buy third party car insurance in India. However, it’s the choice of the proposer if he/she wants to opt for Third Party Insurance only or a comprehensive car insurance policy. It covers damage caused to another person, property or vehicle from the insured vehicle.

A comprehensive insurance policy provides coverage to the insured, a third-party and the insured vehicle. However, the comprehensive car insurance comes with a higher premium as it offers extensive coverage to the insured vehicle.

3. Cubic capacity

The size of a vehicle’s engine is measured in cc or cubic centimeters. It is the total volume of fuel and air that is pushed through a vehicle’s engine by its cylinders. When a car’s engine cubic capacity is 1,000cc, it means that it has the capacity to displace one litre of this air-fuel mixture. And it is one of the major factors in deciding the car insurance premium for comprehensive and third party insurance.

4. No-Claim-Bonus

For all the claim-free years, the insured will earn No-Claim-Discount at the time of car insurance renewal. This is a bonus that is earned for keeping a good driving record and following safety rules.

The below Table is showing how No-Claim-Bonus can be earned on the motor insurance premium-

Claim Free Years NCB (%)
1 Yr. 20
2 Yrs. 25
3 Yrs. 35
4 Yrs. 45
5 Yrs. 50

5. Voluntary Deductibles

This is the amount that the insured chooses to contribute before the insurance provider pays off the claim. For safe drivers, opting for higher Voluntary Deductibles makes sense as it certainly reduces the cost of premium and vice versa.

6. Additional Discounts

One can earn discounts on car insurance premium if an anti-theft device is installed in the insured car. It reduces the chances of a claim for vehicle theft. Members of a registered automobile associations can also earn discounts on premium.

7. Insured’s Declared Value (IDV) -Sum Insured

  • The Insured’s Declared Value (IDV) is the maximum sum insured to be provided by the car insurance provider in the event of total loss or damage or theft of the insured vehicle. Basically, it is the current market value of the vehicle, on which the premium is calculated at the time of policy renewal or purchase.
  • The IDV of a car with fitted accessories is to be calculated at the time of policy purchase or renewal on the basis of the selling price listed by the manufacturer of a particular brand and model. The depreciation is also adjusted on the basis of the car age as mentioned in the table below. It is applicable for claims arising out of total loss or constructive total loss only.

Depreciation applicable while fixing the IDV on the basis of the age of the vehicle –

Car Age Depreciation (%) For Fixing IDV
Up to 6 months 5%
6 months to 1 year 15%
1 year to 2 years 20%
2 to 3 years 30%
3 to 4 years 40%
4 to 5 years 50%
  • Vehicles that are more than 5 years old or models that are no longer manufactured, there IDV is calculated on the mutual understanding between the insurance provider and the policyholder
  • In case of total Loss or constructive total loss claims, IDV should be considered as the ‘Vehicle’s Market Value’ throughout the policy tenure without applying the depreciation value

Note – the Constructive total loss is when the aggregate cost of loss or repair comes out to be more than 75% of the IDV of the vehicle. This is subjected to policy terms and conditions.

8. Additional Covers

With add-on covers, one can enhance the basic protection. If one doesn’t opt for add-on covers like nil depreciation cover, no-claim-bonus protection, roadside assistance, key replacement cover; he/she will have to bear the consequences on his own. With such add-on covers, a lot of unexpected expenses can be covered. However, these benefits can be availed on payment of an extra premium.

9. Demographic

The age of the insured person and other demographics like gender and marital status also affect the cost of car insurance premium. For instance, young drivers are likely to pay a lesser premium as compared to old drivers due to eyesight factor. Unmarried boys are less responsible as compared to married people. Usually, a premium is decided by the insurance provider considering the risk appetite of the insured.

10. Location

The geographical area also plays an important role. The premium to insure a car in Tier-1 cities like Mumbai, Delhi, and Bangalore etc. will be higher as compared to Tier-2 cities. Premiums are also higher in traffic-prone areas or theft prone areas.

Tips to Reduce Car Insurance Premium

There are certain ways to reduce car insurance premium-

  • Opting for voluntary deductibles
  • Earning No-Claim-Bonus for every claim free year
  • Installing navigation device and anti-theft devices to ensure safety and security
  • Availing special premium discounts for having a membership of Automobile Association of India (AAI)
  • Avoid purchasing luxury cars, as it will increase the car insurance premium. More the cost of the car, higher will be the premium
  • Don’t add riders to a car insurance policy unless it is essential

Car Insurance Calculator FAQs

Q1. What are the advantages of using a car insurance premium calculator?

A. An online car insurance calculator proves to be useful in the following manner-

  • It is easy and convenient to use
  • Car insurance quotes are made available to you within a few minutes
  • A hassle-free process to find the best plan as per your needs and preferences
  • Time-saving, effective and affordable way of comparing plans using car insurance calculator

Q2. How to calculate car insurance premium for old cars?

A. To calculate insurance premium for used cars, following information needs to be provided in the car insurance calculator:

  • Car registration number
  • Car Type
  • Fuel type
  • Details of the current vehicle insurance policy
  • For second-hand cars, you need to provide details regarding a change in ownership
  • Previous Claims ( if any)

Q3. How to calculate car insurance premium for new cars?

A. Following information needs to be provided in the car insurance calculator for insuring a new car-

  • Personal details of the owner-driver
  • Car manufacturer
  • Car make and model
  • Manufacturer
  • Manufacturing year
  • State of registration of the car

Q4. What are the factors that affect the car insurance price?

A. Car insurance premium is affected by the following factors-

  • Personal details of the owner-driver
  • The profession of the insured
  • Car’s IDV (Insured Declared Value)
  • Engine’s Cubic capacity
  • Geographical zone
  • Car Type
  • Age of the vehicle
  • Fuel type
  • Voluntary excess or deductibles
  • Anti-theft device installation
  • No-Claim- Discount

Q5. What does it mean by car make and model?

A. Car make is the name of the manufacturer like Hyundai, Toyota etc. Car Model is the model like Hyundai Verna and Toyota Corolla Altis and likewise.

The car insurance price for luxury car models like Mercedes and Audi is more than basic models like i-10, Swift etc. Similarly, the car insurance premium for SUVs is higher than the regular hatchbacks.

Q6. How to calculate car insurance using a formula?

A. You can use this basic formula to understand the motor insurance premium calculation better.  It goes as follows-
Premium is equal to Own Damage Premium – (No claim bonus + additional discounts) + Cost of Additional covers+ ThirdParty Premium as Fixed by the IRDAI

Q7. Can I use the online car insurance calculator for renewing a vehicle insurance policy?

A. Yes, it is recommended to use car insurance calculator at the time of policy renewal. You can compare various plans and choose the most adequate one using the car insurance premium calculator tool.

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