Car Insurance Calculator

An online car insurance calculator makes it easier for you to calculate the premium for your car insurance policy based on the coverage you want. Calculate the estimated cost of buying insurance for your vehicle by using a car insurance calculator.

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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
save up to 85% save up to 85%

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. 3,63,800  
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  

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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.

Car Insurance Fines

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:

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 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 -

CI Renewal CI Renewal

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

Car Insurance Calculator FAQs

  • Q. Is car insurance higher on a new car?

    Ans: Yes. Mostly, the new car insurance cost is higher than the premium for old cars. This is because a car loses its value with age due to depreciation and its IDV reduces. With lower IDV, the premium of a car also gets lower. But the IDV of a car is the highest when it is new and thus, it costs more to insure it.

    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.

  • Q. Which insurance is best for new car?

    Ans: If you have bought a new car, it is best to buy a comprehensive car insurance policy for the vehicle. This is because it only covers your brand-new car against third party liabilities but also covers any loss or damages caused to the car, unlike third party car insurance. In fact, new cars are more prone to theft as they easily catch the eyes of miscreants. Hence, you must opt for a comprehensive insurance cover for your new car. You can use a new car insurance calculator to know the premiums for different plans. You must choose a policy that provides maximum benefits at an affordable new car insurance cost.
  • Q. How long do you have to get insurance on a new car?

    Ans: When you buy a new car, you need to compulsorily buy third party insurance for a period of three years. This is because the IRDA or the Insurance Regulatory & Development Authority of India had made it mandatory for all new cars owners to buy third party insurance for a period of three years. However, the decision to buy a comprehensive or standalone own damage car insurance policy for own damage cover is up to you. In case you want to buy own damage cover, you can check the new car insurance price offered by different insurers with the help of a vehicle insurance calculator.
  • Q. 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.
  • Q. 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.
  • Q. 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 vehicle carefully on the basis of your needs. 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.
  • Q. Can I use car insurance premium calculator at the time of insurance renewal?

    Ans: If you use 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.
  • Q. 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.

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