Car Insurance Calculator

A car insurance calculator is an online tool that enables prospective buyers to check and compare premium quotes from different insurance companies. It helps them to choose an ideal insurance plan as per the requirements that may vary from person-to-person.

Undeniably, car insurance premium calculator is a valuable tool that helps a buyer to get the best car insurance plan on the basis of his specifications. 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 55%. With car insurance calculator, compare plans from top insurers for your new or used car. Get instant online policy as per your budget and needs.

  • Use Car Insurance Calculator Online and Save Money
  • Compare Plans from Top Insurers
  • Select Best Car Insurance

Benefits of Car Insurance Calculator

  • Using a car insurance premium calculator prior to buying a plan makes the overall process easy and convenient for the buyer
  • Make a comparison of premium rates and choose the best insurance plan
  • See for yourself how changing variables of coverage change your premium
  • No need to take your decision in haste or under influence of the agents

How to Use Car Insurance Calculator?

It is an online feature that allows customers to calculate the premium amount for the vehicle on the basis of the information provided by them.

Car insurance calculator provides customers with lots of variation in terms of premium rates as per their requirements. For calculating the exact car insurance premium, a customer needs to mention the specific details that include date of registration, car details, policy start date and other extra coverage details. It is just a matter of a few clicks through your mouse and you’ll get what you want. Moreover, to find a good car policy, comparing two different insurance policies can be the right tool. By comparing premium rates of different insurance companies, one can easily find out the most beneficial insurance. Essentially, the more extensive the coverage, the higher your car insurance premium rates will be.

To calculate car insurance price, every insurance company uses its own method.

  • Premium Calculator for Used Cars: To calculate premium quotes for used cars, you need to give details, like car type, fuel type, registration number, existing car insurance policy details, change in car ownership details, if any and previous year claim reports. Premium calculator for used car allows buyers to get the best deal as per the requirements.
  • Premium Calculator for New Car: For calculating the premium value, you would need to fill details about the vehicle including vehicle manufacturer’s name, vehicle model, year of manufacture, state of registration of Car, etc., with person’s own details. Premium calculator for new car offers you the best deal by comparing all sets of facilities offered by different companies. It is a quick solution to the concerns of the customers.

How to Calculate Car Insurance Premium?

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  
Depreciation 20% Rs. 83,200
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  

Factor that Determine Car Insurance Premium Value

Top Variables that play an indispensable role in deciding car insurance premium rate are:

  • Age and Gender – Individual below 25 years of age are perceived by the insurance company to be more likely involved in accidents and hence individuals in the age bracket of 18 – 25 have to shell out a higher premium.
  • Car Make, Model and Variant – For obvious reasons, high end cars like Audi and Bentley are insured at a higher price than budget car like Alto and Santro. On similar grounds, SUVs are insured at a higher premium than a family car.
  • Place for which you Need the Insurance - Since the traffic density is higher in the urban areas, cars are insured at a slightly higher premium in the urban areas compared to the sub urban areas.
  • Fuel Type – Compared to a plain 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 the lesser the IDV, the lesser is the premium.
  • Discounts – Certain professionals such as defense personnel, doctors and govt. employees are entitled to get an additional discount on their premium.
  • Voluntary Access - Voluntary access is the minimum amount that you declare to bear at the time of claim. The higher deductible you opt for, the lower will be your premium.
  • Anti-theft Discount – You are entitled to get 2.5% off on the premium, if your car is fitted with an ARAI approved anti theft device.
  • No Claim Bonus – No Claim Bonus is offered to the insured 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.

Details Required for Calculating Car Insurance Premium

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-

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

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

How Do You Calculate the Premium for New & Old Cars?

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

Car Insurance Premium Renewal

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.


Car Insurance Calculator FAQs

  • 👉 What is a car insurance premium calculator?

    Ans: A car insurance premium calculator is an online tool that helps insurance buyers to obtain a quote from various car insurance companies along with the premium that they have to pay.
  • 👉 I want to obtain an insurance quote for my car, where can I find car insurance premium calculator?

    Ans: You can easily find a car insurance premium calculator here or on the official website of your preferred insurer. All you need is filling in some basic insurance information like your name, mobile number, address, vehicle model number, vehicle manufacture’s name, manufacturing year, fuel type, registration details etc. After filling up the correct details, click on the “generate premium” button and you will get your quote.
  • 👉 What are the factors that affect the car insurance premium?

    Ans: Factors like Insured Declared Value of the car, age, and type of the automobile, engine’s cubic capacity, geographical location etc. dominate the calculation of the premium of your car insurance.
  • 👉 What are the tips to reduce car insurance premium?

    Ans: There are so many ways that can help you to reduce your car insurance premium. You can do so by becoming a member of the Automobile Association of India, by installing anti-theft equipment in your car, etc. Before your car insurance policy is issued, make sure the IDV of your car is computed correctly. It would not only assure that you’re paying the right premium but also would guarantee a convenient claim free procedure also. Buy your automobile carefully on the basis of your needs. Don’t purchase an SUV in case you don’t commute less than 50 kilometers per month. Keep in mind that the showroom cost and the Cubic Capacity of your vehicle add on to your premium amount. Don’t opt for any add-on cover that isn’t required. The reason behind that is it will enhance your premium.
  • 👉 What are the benefits of using a car insurance calculator?

    Ans: The following are the benefits of using a car insurance premium:

    1. It makes the insurance buying process convenient and easy for the insurance buyers.

    2. It helps to draw a comparison of the premium rates and select the best insurance policy that meets your insurance needs.

    3. It gives a firsthand experience on how changing coverage variables can drastically change your premium.

    4. You don’t have to take your decisions in a hurry or being manipulated by the insurance agents.

  • 👉Can I use car insurance premium calculator at the time of insurance renewal?

    Ans: If you used car insurance renewal premium calculator at the time of buying insurance, you’re well aware of the ease of using the calculator tool. If you haven’t, you can use car insurance renewal premium calculator online and get the premium details at time of renewal of your insurance policy. It’s easy, convenient, and simple.  
  • 👉 What is the importance of car insurance renewal premium calculator?

    Ans: It is a significant tool to determine the car insurance premium in a convenient manner. Potential insurance buyers can get insurance quotes in a matter of a few clicks and they can pick the plan that fits their budget and fulfills their insurance needs.
Written By: PolicyBazaar - Updated: 01 June 2020
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