Car Insurance Calculator

What is a Car Insurance Premium Calculator?

A car insurance calculator is a free online tool that helps you calculate the estimated premium payable for your four-wheeler insurance policy. By entering details, such as your vehicle age, make & model, fuel type, etc., you can have an idea of how much you need to pay for your four-wheeler insurance coverage. With the help of a car insurance premium calculator, you can compare different plans and see if they meet your coverage requirements as well as your budget.

How is Car Insurance Premium Calculated in India?

To know how car insurance is calculated in India, check out this simple formula.

Car Insurance Premium = Own Damage Premium - (No claim bonus + discounts) + Third Party Liability Premium that is fixed by the Insurance Regulatory and Development Authority (IRDAI) of India.

Here is an example of car insurance price calculation for a car that's registered in 2026 so that there is no room for any confusion.

*Disclaimer: The above data is for a Bundled Car Insurance Policy as of 6.01.2026 for a brand new Tata Nexon Smart (Petrol) registered under DL1 RTO.

How To Use Car Insurance Premium Calculator Online?

In order to use the car insurance calculator online on Policybazaar.com, follow the steps mentioned below:

Step 1: Visit the "Car Insurance Calculator" page on Policybazaar.com

Step 2: Select your car's model, make, fuel type and variant

Step 3: Select the RTO of your car from the given list

Step 4: Select the year in which you purchased your car

Step 5: Select "Yes" if you have previously made a claim, else select "No"

Step 6: Now, click the 'Calculate' button

Step 7: The insurance calculator will now display the estimated own damage car insurance premium and Insured Declared Value of your car.

How to Calculate New Car Insurance Premium?

While the third-party premium for all cars is decided by IRDAI, you can calculate the own damage premium for a new car using the following formula:

OD Premium of a new car = (Insured Declared Value (IDV) of the new car x insurer's premium) + (Add-on covers) - (NCB + Discounts (if any))

Alternatively, the new car insurance price calculator can also help you estimate the premium you need to pay for your new car insurance policy.

How to Calculate Car Insurance Premium for Old and Used Cars?

Based on the below mentioned factors, you can calculate insurance premium for old or used cars:

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

Using these details, the car insurance premium calculator will determine the premium for an old or used car to help you select the right policy.

Details Required for Calculating Insurance Premium for your Car

To calculate car insurance premium using the online calculator, you will need the following details:

• Car Model
• RTO
• Car Registration Year
• Car Variant
• Manufacturer
• Fuel type
• Claim details
• No Claim Bonus (NCB) discount

Benefits of Car Insurance Calculator

Online car insurance calculator provides you with instant car insurance quotes on both comprehensive and third-party insurance policies. Listed below are some of the major benefits of using a car insurance calculator online:

• Premium Estimation- It makes the motor insurance premium calculation process easy and convenient and gives an estimate based on the car specifications and coverage selected
• Works for Both New and Old Cars- It is easy to get quotes for both new and old cars. The same online calculator works for both old and new cars.
• Find the Right Add-ons- Using this insurance calculator, you can compare premiums and choose the right insurance plan with the necessary add-on covers that suit your pocket
• Make the Right Selection- See for yourself how changing variables of coverage change your premium. The results give an estimate of the premium based on the customizations.

Factors that Determine Car Insurance Premium Value

Here are the key factors that determine car insurance premium while using an online premium calculator:

• Car Make, Model and Variant- For obvious reasons, high-end cars like Audi and Bentley are insured at a higher price than a budget car like Alto and i10. On similar grounds, SUVs are insured at a higher premium than any of the family cars.
• Car Fuel Type- Compared to a petrol/diesel car, you'll have to pay a higher premium for insuring a CNG-fitted car.
• Year of Manufacture- The older your car, the lesser is its Insured Declared Value (IDV) and, consequently, the lower is the premium.
• Geographical location/RTO- Since the traffic density is higher in the urban areas, car insurance premium is slightly higher in comparison to the cars insured in the sub-urban areas.
• Anti-theft Device/Safety Features- Car insurance companies provide 2.5% off on the premium if the insured car is fitted with an ARAI-approved anti-theft device or any other safety features.
• No Claim Bonus - No Claim Bonus in car insurance is offered to the policyholder for every claim-free year. It is a cumulative discount and varies from 10% to 50%. NCB can be transferred to another car or policy

How to Reduce Car Insurance Premium?

The premium of a car insurance policy can vary from the kind of coverage the policyholder has opted for and some other factors like IDV, add-on covers, model, make, etc. Here are some simple ways in which you can bring down your car policy premium:

1. Do not Raise Small Claims

   When you raise a claim for minor damages, you lose the benefit of NCB which if retained can provide you with a discount on your renewal premium. Thus, try retaining your no claim bonus by not raising minor claims. For instance, if your car insurance NCB is Rs 10,000 and your repair charges are Rs 5,000, you might want to pay it off by yourself.

2. No Claim Bonus Transfer

   If you buy a new car or switch your insurer, you can carry forward your NCB benefits to the new car insurance policy by using the NCB transfer process. Consequently, it helps reduce your premium costs.

3. Renew Policy on Time

   In case the policyholder does not renew the policy within the grace period, the insurer cancels the insurance policy. In such a situation, you are required to pay more for a new car insurance policy. Thus, make sure to renew policy on time to avoid paying a higher premium for a new car policy.

4. Increase Your Voluntary Deductible

   A voluntary deductible in car insurance is the amount you choose to pay out of your pocket in case of a claim. It helps lower your car insurance premium. You should wisely choose a voluntary deductible so it does not impact your budget while making a claim.

   Here's the table for a better understanding of voluntary deductibles and their impact on car insurance premiums:

   Voluntary Deductible	Discount Percentage on the Own Damage (OD) Premium
   Rs. 2,500	20%, up to Rs. 750
   Rs. 5,000	25%, up to Rs. 1,500
   Rs. 7,500	30%, up to Rs. 2,000
   Rs. 15,000	35%, up to Rs. 2,500

   Consider this example:

   When you buy or renew car insurance, you opt for a voluntary deductible of Rs. 2,500. Now, if you make a claim of Rs. 10,000, the total payable claim amount you will receive will be as follows:

   Claim Amount (A)- Rs. 10,000

   • Consumable Parts Deduction (B)- Rs. 2,000
   • Compulsory Deductible (C)- Rs. 1,000
   • Voluntary Deductible (D)- Rs. 2,500

   Net Payable Claim Amount (A- (B+C+D)) = Rs. 4,500

   *Disclaimer- The higher the voluntary deductible you choose, the lower your car insurance premium is. However, this will increase your out-of-pocket expense at the time of a claim.

5. Installing Anti-theft Device

   If the policyholder has installed any anti-theft device in the car then the insurer will provide a 2.50% or a maximum of up to Rs. 500 discount on the premium. The discount on car insurance premiums is provided to those who install the anti-theft device that is certified by the Automotive Research Association of India (ARAI).

6. Try Not to Modify Your Car

   Some car enthusiasts who have a thing for modifying their cars install new alloy wheels, woofers, headlamps, etc. This becomes one of the major reasons behind the increment in the premium rate of a car insurance policy. Thus, try not to modify your car if you want to pay a lower premium.

7. Opt for Pay As You Drive (PAYD) Car Insurance

   Under Pay as you Drive car insurance or Pay as you Go car insurance, the insurer charges a premium as per the kilometres driven by you, which is fixed at the time of policy purchase. However, the policy coverage and benefits still remain the same as a comprehensive car insurance policy. For those who drive occasionally, PAYD insurance is a great option to reduce the premium price.

8. Buy Policy Online

   Buying car insurance online can be affordable. When you opt for an online purchase, you can compare different policies and purchase the one that suits your requirements and budget. Moreover, you can also make use of a motor insurance calculator before buying a car policy so that you get the right deal. Also, it reduces the agent's fee that you pay while buying policy offline.

Third-Party Liability Car Insurance Premium Rates 2026

The table below highlights the third-party car insurance premium rates as fixed by IRDAI:

Third Party Car Insurance Premium Prices for Regular Cars

For fuel-based vehicles, the 3rd party premium rates are as follows:

Third Party Insurance Premiums for Electric Vehicles (EVs)

In case of electric car insurance, IRDAI has set the following third party premium prices: