Car Insurance Calculator

What is Car Insurance Premium Calculator?

A car insurance calculator is an online tool that calculates the estimated premium amount for a car insurance policy. It allows you to know the actual premium that you would have to pay for buying different car insurance plans and thus, helps you to pick the best plan within your budget. All it needs are the details of your car, including its age, make & model, fuel type, etc. to calculate the premium amount.

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. This tool can be used by all car insurance buyers as it is available for free.

How To Use Car Insurance Calculator Online?

In order to use the car insurance calculator online, follow the steps mentioned below:

Step 1: Select your car’s make & model, brand, fuel type and variant.

Step 2: Select the location registered for your car from the list.

Step 3: Select the car’s year of purchase.

Step 4: Now you will see two options as Yes or No.

Step 5: If you made any claims in the previous year then select Yes otherwise select No.

Step 6: Once you are done with this procedure, you will have to enter your mobile number and name.

Step 7: An OTP will be sent to your mobile number then you will have to enter that OTP to get the car insurance policy premium quotes.

Benefits of Car Insurance Calculator

Below are the mentioned benefits of using a car insurance calculator online:

• Using a car insurance premium calculator before 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 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.

How to Reduce Car Insurance Premium?

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.

Online Purchase

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.

Not Raising Small Claims

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.

No Claim Bonus Transfer

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.

Renew Policy on Time

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.

Installing Anti-theft Device

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).

Try Not to Modify Your Car

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.

Transportation Cost Is Saved

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.

Factors that Determine Car Insurance Premium Value

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

• Age and Gender – Individuals 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 a budget car like Alto and Santro. On similar grounds, SUVs are insured at a higher premium than a family cars.
• 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 Insurance Premium for your Car 

One can use an 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

Below is the third party car insurance premium rates effect from June released by IRDA, 16 June 2019:

How Do You Calculate the Car Insurance Premium for New and Old Cars?

The following information needs to be provided while calculating car insurance premiums online for old and new cars with an insurance calculator -

How to Calculate Insurance for New Car?

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:

• 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

How to Calculate Insurance 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