Commercial Vehicle Insurance Premium Calculator

What is a Commercial Vehicle Insurance Premium Calculator?

An insurance premium calculator is a free online tool that helps you get an idea and estimate your commercial vehicle insurance price in a few seconds. It helps you calculate your premium based on the age, make, model, etc., of your commercial vehicle.

How to Use Online Commercial Vehicle Insurance Premium Calculator?

An online commercial vehicle insurance premium calculator is easy to use. The steps to use it are given below:

• Step 1: Go to the commercial vehicle insurance calculator page
• Step 2: Fill in the form with all the required details such as make, model, year of purchase, etc
• Step 3: Select if you have made a claim in the previous year or not to calculate your NCB
• Step 4: Once you have filled in the details, click on 'Calculate'
• Step 5: A rough premium amount based on the details you provide will be displayed. Click on 'Check plans' to get a full list of plans and you can choose the one that suits your needs.

Benefits of Commercial Vehicle Insurance Premium Calculator

Apart from calculating your premium online in a few seconds, here are other benefits of using a commercial vehicle insurance premium calculator:

• Compare Premiums of Multiple Plans- You can compare premium rates of multiple commercial vehicle insurance plans online with the help of an online premium calculator. Thus, it will help you to find your ideal plan that suits your pocket.
• Find the Right IDV - By using a commercial vehicle insurance premium calculator, you can find out the ideal IDV or insured declared value of your vehicle. IDV is the maximum amount that you can receive from your insurer if your vehicle is completely damaged (damaged beyond 75% of its value) or stolen.
• Choose the Right Add-Ons- You can see how different add-ons directly affect the premium of your insurance policy. As a result, it will help you make an informed decision and include only the necessary add-ons with your policy.

How Does Commercial Vehicle Insurance Premium Calculator Work?

The calculation of the commercial vehicle insurance premium is based on a formula fixed by the Insurance Regulatory & Development Authority of India (IRDAI). Given below is the formula used to calculate the premium to make you understand how it actually works.

Formula: Premium= Own Damage Premium - (NCB + Discount) + Liability Premium

You must note that the premium of a third party commercial vehicle insurance is fixed by the IRDAI

Factors Affecting Commercial Vehicle Insurance Premium

Take a look at the factors that affect the premiums of a commercial vehicle insurance policy:

• Make & Model of the Vehicle- The premium of high-end commercial vehicles is more than that of regular vehicles. This is because high-end vehicles come with expensive parts and therefore, their repairs are also costly.
• IDV of the Vehicle - The IDV of the vehicle directly impacts your commercial vehicle insurance premium. The higher the IDV of the vehicle, the higher will be its insurance premium.
• Age of the Vehicle - The age of the commercial vehicle affects the premium of your motor insurance policy. This is because older vehicles depreciate with age and thus, have a lower IDV. The higher the age of the vehicle, the lower will be the premium.
• Geographical Location - If the geographical location where the vehicle will be operating is prone to accidents or calamities, then the insurance premium will be high. For example, taxis operating in Mumbai will have to pay a higher premium as the city is prone to floods and accidents.
• Fuel Type - The fuel used in your commercial vehicle also impacts your insurance premium. The premium of a CNG vehicle is more than the petrol one because they are difficult to maintain.
• No Claim Bonus - No Claim Bonus or NCB is the renewal discount that you get for every claim-free year. Thus, the higher the NCB percentage, the lower will be the policy premium.
• Add-on Covers - Add-on covers are additional covers that you can buy for an additional premium to enhance your policy coverage. The more add-on covers you opt for, the higher will be the premium amount.
• Voluntary Deductibles - Voluntary deductible refers to the share of the claim amount that you agree to pay during claim settlement. In exchange for the deductible, insurers offer a discount. Hence, the higher the voluntary deductible, the lower will be the premium.

Why Do You Need a Commercial Vehicle Insurance Premium Calculator?

Here are some of the reasons why you must use a commercial vehicle insurance premium calculator before buying a policy:

• Pick the Ideal Plan - Most motor insurance companies offer coverage for commercial vehicles. This premium calculator for commercial vehicles allows you to compare all the plans based on the features, coverage, and premium. Thus, it makes it easier for you to pick the right plan for your vehicle based on your preference and budget.
• Reduce the Premium - A commercial vehicle premium calculator helps you to reduce your policy premium as it helps you to understand how different factors impact the premium amount. As a result, you can remove unnecessary covers and select an ideal IDV to avoid your premiums from overshooting your budget.
• No Need for Insurance Agents - With a premium calculator, you do not need to depend on an insurance agent to choose the best policy. You can easily compare plans from different insurers yourself and buy a policy in the comfort of your home without worrying about taking an appointment.
• More Transparency - The chances of facing fraud reduces when you use a premium calculator before buying or renewing your policy. You can easily check the premium of a commercial vehicle insurance plan yourself online and won't be tricked into paying extra. Hence, the online calculator helps to create more transparency in the policy buying process.

Comprehensive Commercial Vehicle Insurance Premium Calculator

A comprehensive commercial vehicle insurance covers both third-party liabilities and own damages arising out of unforeseen events like calamities, fire, theft, etc, and has a slightly higher premium. You can use the calculator to check the premium, compare the plans and to check the difference between the liability policy and package policy premiums.

Some of the crucial components of a comprehensive premium calculator are:

• Own damage cover
• Third-party cover
• Make & model of the vehicle
• Age of the vehicle
• Insured Declared Value
• Engine CC of the vehicle
• Personal accident cover
• No Claim Bonus
• Add-on covers
• Deductibles

Third-Party Commercial Vehicle Insurance Premium Calculator

A third party commercial vehicle premium calculator allows you to calculate the premium of a liability only policy. This type of insurance provides coverage only for third party liabilities, such as property damages and physical injuries, caused by the insured car in an accident.

Thus, you can use this calculator to check the premium that you will have to pay to buy a third-party commercial vehicle insurance policy before making the actual purchase.

Take a look at some of the crucial components of a third party commercial vehicle premium calculator below:

• Third party cover
• The capacity of the vehicle.
• Personal accident cover

Third Party Commercial Vehicle Insurance Premium Rates

The following table shows the third party premium rates for commercial vehicles as proposed by the IRDAI:

Use of Commercial Vehicle Insurance Premium Calculator for Old & New Vehicles

A premium calculator is useful for both old and new commercial vehicles. This is because all commercial vehicles need to be insured as per the motor laws of the country. As a result, a premium calculator can be used to check the insurance premium of both old and new commercial vehicles before buying a policy.

1. Commercial Vehicle Insurance Premium Calculator for New Vehicles:

   A premium calculator can be used to check the premium of different plans and choose the best plan for your commercial vehicle based on your requirement and coverage. You can also purchase several add-ons with your commercial vehicle insurance policy for your new vehicle.

   If you want to calculate the insurance premium for a new commercial vehicle, then you will have to enter details like the manufacturer's name, vehicle model, state it got registered, the year it got manufactured as well as your own personal details.

2. Commercial Vehicle Insurance Premium Calculator for Old Vehicles:

   The premium of a commercial vehicle reduces with age and so does its insurance premium. Besides, several people do not buy any add-on covers for vehicles older than 5 years, which further reduces the premium. Thus, a premium calculator can help you to know the reduction in the premium of commercial vehicle insurance for an old car.

How to Reduce Your Commercial Vehicle Insurance Premium?

The premium of a commercial vehicle insurance policy varies from insurer to insurer and is dependent on the kind of coverage you opt for. However, there are certain measures that you can take to keep your insurance premium low. Take a look at the ways to reduce your commercial vehicle insurance premium:

1. Purchase Insurance Online

   It is suggested that you buy commercial vehicle insurance online because it is cost-effective. Buying a commercial vehicle insurance policy online reduces the operational costs of the insurance company and hence, the insurer reduces the premium price.

2. Accumulate Your NCB

   No Claim Bonus (NCB) is a renewal benefit that you get when you do not raise a claim against your commercial vehicle insurance. This bonus can be used to get a discount on the renewal premium. If no claims are raised for five consecutive years, you can earn an NCB of 50%. Thus, you must avoid raising a claim for minor damages and instead, build your NCB.

3. Install Security Device

   Another way to reduce your commercial vehicle insurance premium is to install anti-theft devices in your vehicle. If you install an anti-theft device separately, your insurer will provide a discount on your yearly premium for taking security measures. However, make sure that the anti-theft device is approved by the Automotive Research Association of India (ARAI).

4. Timely Policy Renewal

   Every policyholder must renew his/her commercial vehicle insurance policy on time. If you miss the renewal due date, your policy will expire. To renew coverage for your vehicle, the insurer will inspect your vehicle and may increase your premium. Besides, you will also lose your NCB if you do not renew your policy within 90 days of the policy expiry date.

5. Prevent Any Vehicle Modifications

   When you modify the features of your commercial vehicle or add accessories to it, its IDV increases. This will lead to an increase in the policy premium. Therefore, if you want to keep your vehicle insurance premium low, try not to get the vehicle modified.

6. Increase Voluntary Deductibles

   When you opt for a voluntary deductible, your insurer will offer you a discount on the renewal premium as their liability is reduced. The higher is the deductible, the lower would be the premium. But make sure you opt for a voluntary deductible that you can afford to pay.

7. Choose Add-ons Judiciously

   Add-on covers are essential to expanding your commercial vehicle policy coverage. If you opt for add-ons that you don't need, it will increase your premium immensely. Hence, you must opt for only those add-on covers, which you genuinely need.