How to Calculate Your Car Insurance Premium Online?

A car insurance policy document has certain sections where all the policy terms & conditions, inclusions, exclusions, IDV, etc., are written. All the car owners must be aware of these specifics that are taken into consideration while calculating the car insurance premium. If you want to calculate your car insurance premium, read on to find out how you can do that online.

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Factors Affecting Car Insurance Premium

Your car insurance premium is calculated based on these covers-

  1. Third-party liability cover
  2. Own damage cover
  3. Personal accident cover
  4. Add-on covers
  1. Third-party Cover

    In India, it is mandatory to have at least third-party liability cover for the car owners. The reason for making it a mandatory cover is, it financially covers damages or loss to the third person or property.

    However, it does not give coverage for the own damages, so it is advised to opt for a policy that covers the expenses for the own damages as well.

    The premium of third-party cover is decided by the Insurance Regulatory Authority of India (IRDAI) and the cubic capacity of the car.

  2. Own-damage Cover

    The own-damage cover is optional coverage for the policyholders. It is termed as a beneficial insurance coverage. It reimburses the expenses if your insured car is damaged in an accident, theft, fires, or natural & man-made disasters.

    The premium for OD cover is calculated based on the IDV. The higher the IDV or Insured Declared Value means higher will be the premium and vice-versa. The Indian Motor Tariff decides the percentage of IDV.

    Formula to Calculate Insured Declared Value (IDV)

    IDV = Car's showroom price + cost of accessories (if any) - depreciation (decided by the IRDAI)

    Own Damage = IDV x premium rate decided by the insurer + add-on covers (if any) - discounts or benefits (no claim bonus)

  3. Personal Accident Cover

    PA cover is another mandatory cover that financially protects the policyholders in case of permanent disability or accidents. Under this, you get the sum insured of Rs 15 lakh. The premium charged for PA cover becomes higher as you increase the sum insured.

  4. Add-on Covers

    Add-on covers or riders are the most important component for calculating the car insurance premium. The add-on covers help in enhancing the policy coverage by paying a little extra amount as a premium.

    Some commonly known riders in car insurance are roadside assistance cover, NCB protection add-on cover, zero depreciation cover, tyre protection cover, etc. All these covers help the policyholder to protect extensively in many unforeseen scenarios.

Online Car Insurance Premium Calculator

To calculate the car insurance premium online, you can visit the official website of Policybazaar Insurance Brokers Limited. However, you must consider the following aspects to get the exact the value-

  1. Insured Declared Value (IDV)

    IDV is an estimated amount made by the insurance provider. It is a set claim amount that a policyholder can ask for in case of total loss, accident, or theft. Remember that IDV keeps on decreasing with time.

  2. Cubic Capacity of the Car

    Cubic capacity refers to the size of the car's engine. The CC differs from one variant to another variant. Therefore, the higher the engine cubic capacity, the higher will be the premium.

  3. Age of the Car

    The car's age is another significant aspect in calculating car insurance premiums online. For a newly bought car, you would have to pay a higher premium for coverage rather than for an old car. Therefore, the age of the car plays a vital role in deciding on car insurance prices.

Conclusion

If you own a car, it is advised to opt for a comprehensive insurance plan, as it will save you from the financial burden during unpredicted circumstances. Your insurance company will take care of the expenses of repair or replacement as a return favor for the timely payment of premium. You must consider the above-mentioned factors to calculate your car insurance premium online.

Written By: PolicyBazaar - Updated: 17 August 2022
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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.

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