- Car Insurance Calculator
- What is Car Insurance Premium Calculator?
- Benefits of Car Insurance Calculator
- How to Use a Car Insurance Premium Calculator?
- How to Calculate Car Insurance Premium?
- How to Reduce Car Insurance Premium?
Table of Content
A car insurance premium calculator is a freely available online tool that assist you to calculate the amount of premium that you need to spend for the desired car insurance coverage. It allows you to make a comparison of different insurance plans on a click of the mouse. Simply put, car insurance calculator helps buyers to evaluate their insurance needs and get an appropriate plan accordingly.
Compare car insurance quotes and save upto 80%. With car insurance premium calculator, compare plans from top insurers for your new or used car. Get instant online policy as per your budget and needs.
Below are the mentioned benefits of using a car insurance calculator online:
Policybazaar’s Car Insurance Calculator very easy to use. You just need to mention the required information of your vehicle / car & choose the best car insurance policy. Below are the mentioned steps to use a car insurance premium calculator:
Based on your selection i.e., comprehensive / liability coverage & addons, you will see the actual car insurance premium which you have to pay
To calculate car insurance price, every insurance company uses its own method.
The calculated premium is the direct result of a basic formula. The formula would give you a better understanding of how exactly the car insurance premium is calculated. Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium that is fixed by the Insurance Regulatory and Development Authority (IRDA) of India Here is an example of car insurance calculation so that there is no room for any confusion.
|Factors||Manufacturing Year (2012)||Car Insurance with NCB|
|Ex Showroom Rate||Rs. 4,16,000|
|Insured Declared Value||Rs. 3,32,800|
|Own Damage Premium||1.970%||Rs. 6556|
|No Claim Bonus Discounts||20%||Rs. 1311|
|Total Own Damage Premium||Rs. 5,425|
|Personal Accident Cover||Rs. 100|
|Legal Liability Paid to the driver||Rs. 50|
|Compulsory Third-Party Cover||Rs. 1110|
|Net Premium||Rs. 6505|
|Service Tax||14%||Rs. 911|
|Total premium||Rs. 7416|
Purchasing car insurance is mandatory in India. The policyholder pays the yearly premium amount to get the benefits of the insurance policy for a year. The policyholder can also purchase the insurance policy for multiple years for up to 3 years. The premium rates of the car insurance policy vary from the kind of cover the policyholder opts for and some other factors as well. To keep the premium rates of the insurance policy low, you can keep the following things in mind.
Purchasing the insurance policy online is cost-effective. When a buyer opts for an online purchase, they get to compare different policies and purchase the one that suits their requirements and budget. Also, it reduces the agent’s fee.
When the policyholder raises the claim for minor damages, they lose the benefit of the No Claim Bonus (NCB). It would be wiser and beneficial for the policyholder to not raise a claim for the minor damages and pay for its repair out of pocket.
The policyholder should know his right and transfer the No claim bonus benefit after purchasing a new car and a new car insurance policy. When a policyholder hasn’t raised a claim in the previous year's makes that policyholder eligible for NCB benefit that is decided by the IRDAI.
When the policyholder does not renew the policy on time the insurer provides a grace period during which the policyholder can renew the policy. In case the policyholder does not renew the policy within the grace period, the insurer cancels the insurance policy.
If the policyholder has installed any anti-theft device in the car then the insurer will provide a 5% discount on the yearly premium rates. 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).
Some of the car enthusiasts who have a thing for modifying their cars and make it look cooler than it is. They install new alloy wheels, woofers, headlamps, etc. This becomes one of the major reasons behind the increment of the premium rate of a car insurance policy.
To reach the insurer’s office a person either goes by public transport or by their vehicle. Both convince costs a certain amount of money. This expenditure can be saved if the car owner chooses to purchase the policy online.
Top Variables that play an indispensable role in deciding car insurance premium rate are:
One can use online car insurance premium 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 online-
The only thing that one needs to be cautious is off 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.
You can also use this basic formula to understand the car insurance premium calculation better. It goes as follows-
Premium is equal to Own Damage Premium – (No claim bonus + additional discounts) + Cost of Additional covers+ third-party Premium as Fixed by the IRDAI
Below is the third party car insurance premium rates effect from June released by IRDA, 16 June 2019
|Engine Capacity||Premium Effective June 16, 2019 (Rs.)|
|Less than 1000 CC||2,072|
|More than 1000 CC & less than 1500 CC||3,221|
|More than 1500 CC||7,890|
The following information needs to be provided while calculating car insurance premium online for old and new cars with insurance calculator -
The new car insurance price depends on the type of plan that you are buying. If you opt for a comprehensive policy, the new car insurance cost will consist of two parts – third-party premium and own damage (OD) premium. The third-party premium for all cars is decided by the IRDA. However, the own damage premium is calculated with the help of the following formula:
OD Premium of a new car = Insured Declared Value (IDV) of the new car X insurer rate of premium + Add-on covers - Discount
Besides using the formula to calculate the new car insurance price, one can use a car insurance premium calculator to determine the premium of your new car.
Details required for insurance calculated for a new car:
How to Calculate Insurance for Old & Used Cars?
Customers who have already brought an insurance policy for their cars need to renew the policy at regular intervals to get all benefits. Each of the policy is designed with predetermined expiry dates, after crossing that particular date; customers need to get renewal for the insurance policy. One can easily renew the policy online.
Many buyers make premium rates the sole criteria of choosing a car insurance policy. However, this is not a right move. There are other features and benefits in a plan to look out for. If you are getting a better coverage at a slightly higher premium rate, you should prefer it over a lower coverage plan.
However, the premium of a car depends on several factors apart from the IDV, such as make & model of the car, add-on covers, no claim bonus, engine capacity of the car, etc. Therefore, it is advisable to use a vehicle insurance calculator to estimate the new car insurance price.
Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.Read More