Commercial Vehicle Insurance Premium Calculator

A commercial vehicle insurance premium calculator allows commercial vehicle owners to check the premium of an insurance policy before buying. Purchasing the best insurance plan for your commercial vehicle within your budget becomes easier with the help of this online calculator.

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What is Commercial Vehicle Insurance Premium Calculator?

A commercial vehicle insurance premium calculator is an online tool that calculates the insurance premium for commercial vehicles. It estimates the premium that you will be required to pay to buy a commercial vehicle insurance policy with your desired coverage. As a result, it helps you to check the actual payable premium, thereby, choosing the most suitable motor insurance policy as per budget.

Commercial vehicle insurance premium calculators are free to use. It helps you to compare premiums of plans offered by different commercial vehicle insurance companies and choose the best plan for your vehicle. All you need to do is enter a few details of your commercial vehicle, such as the age, make, model, etc., to get a commercial vehicle insurance quote.

How to Use Commercial Vehicle Insurance Premium Calculator Online?

Calculating the premium of a commercial vehicle insurance plan is easy. You just have to fill in the required information on the calculator page and choose the one that suits your requirement and is in your budget. Here are the steps that you can follow to calculate the premium of a commercial vehicle insurance policy:

  • Fill in the commercial vehicle’s details, such as make, model, variant and fuel type
  • Enter the ex-showroom price of your vehicle
  • Enter your car’s registration city and the year it was purchased
  • Select if you have made a claim in the previous year or not
  • Once you have filled in the details, click on the “Calculate” icon
  • The premium of various commercial vehicle insurance plans will be mentioned and you can choose the one that suits your needs.

The commercial vehicle calculator will also show you the final premium that you will have to pay for your insurance policy based on your coverage selection and add-ons.

However, if you have a used commercial vehicle and want to calculate the policy premium, you will have to provide details like vehicle type, registration number, fuel type, existing car insurance details, ownership change details and previous claim record.

Benefits of Commercial Vehicle Insurance Premium Calculator

Apart from calculating commercial vehicle insurance premiums online in the comfort of your place, here are other benefits of using the calculator:

  • Compare Premiums of Multiple Plans -You can compare premium rates of multiple health insurance plans online with the help of this premium calculator. Thus, it will help you to find your ideal plan that suits your budget and requirements.
  • 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 during claims.
  • Understand Premium-variable Relationship– With the help of a commercial vehicle premium calculator, you can see how different variables alter the premium of your insurance  policy. As a result, it will help you make an informed decision and pick the right mix of variables under your commercial vehicle insurance policy.
  • No Agent Involvement -Your decision to buy a commercial vehicle insurance plan will be based on your understanding and not on an agent. This is because no agent interference is involved and thus, your decision is not influenced. Besides, you save money on the agent commission.

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How Does Commercial Vehicle Insurance Premium Calculator Works?

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 – (NCB + Discount) + Liability premium 

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 company offer a discount. Hence, the higher the voluntary deductible, the lower will be the premium.
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Why Should You Use 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 premium calculator is used to calculate the premium of a comprehensive insurance plan for commercial vehicles. Comprehensive insurance covers the insured commercial vehicle for both accidental third-party liabilities and own damages arising out of unforeseen events like calamities, fire, theft, etc.

Therefore, you can use this calculator to check the premium of comprehensive commercial vehicle insurance plans from different insurers and compare them to make the best pick.

Some of the crucial components of a comprehensive commercial vehicle insurance 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 third-party insurance plan for commercial vehicles. Third party insurance provides coverage 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:

Commercial Vehicle Type Capacity of the Vehicle (GVW) Third-Party Premium Rates (2022-23)
Goods Carrying Commercial Vehicles (except 3 wheelers) Up to 7500 Kg Rs 16,049
Rs 13,642 (EV)
More than 7500 Kg to up to 12,000 Kg Rs 27,186
Rs 23,108 (EV)
More than 12,000 Kg to up to 20,000 Kg Rs 35,313
Rs 30,016 (EV)
More than 20,000 Kg to up to 40,000 Kg Rs 43,950
Rs 37,357 (EV)
More than 40,000 Kg Rs 44,242
Rs 37,606 (EV)
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles (except e-carts) - Rs 4,492
Rs 3,139 (EV)
Trailers - Rs 2,485
Passenger Carrying Four Wheelers (up to 6 passengers) Up to 1000 CC Rs 6,040
(Rs 1,162 per licensed passenger)
More than 1000 CC to up to 1500 CC Rs 7,940
(Rs 978 per licensed passenger)
More than 1500 CC Rs 10,523
(Rs 1,117 per licensed passenger)
Passenger Carrying Three Wheelers (up to 6 passengers) excluding e-rickshaw - Rs 2,539
(Rs 1,214 per licensed passenger)
Passenger Carrying e-Rickshaw (up to 6 passengers)   Rs 1,648
(Rs 789 per licensed passenger)
Passenger Carrying Four or More Wheeled Vehicles (More than 6 passengers) Educational institution bus Rs 13,729
(Rs 839 per licensed passenger)
Other buses Rs 14,343
(Rs 877 per licensed passenger)
Passenger Carrying Three Wheelers (More than 6 but less than 18 passengers) - Rs 6,763
(Rs 1,349 per licensed passenger)
Passenger Carrying Three Wheelers (More than 17 passengers) - Rs 15,502
(Rs 948 per licensed passenger)
Passenger Carrying Motorized Two Wheelers Up to 350 CC Rs 861
(Rs 580 per licensed passenger)
More than 350 CC Rs 2,254
(Rs 580 per licensed passenger)
Passenger Carrying Four Wheeler Electric Vehicles (up to 6 passengers) Up to 30 KW Rs 5,134
(Rs 988 per licensed passenger)
More than 30 KW to up to 65 KW Rs 6,749
(Rs 831 per licensed passenger)
More than 65 KW Rs 8,945
(Rs 949 per licensed passenger)
Passenger Carrying Four or More Wheeled Electric Vehicles (More than 6 passengers) Educational institution bus Rs 11,670
(Rs 713 per licensed passenger)
Other buses Rs 12,192
(Rs 745 per licensed passenger)
Passenger Carrying Three Wheeled Electric Vehicles (More than 6 but less than 18 passengers) - Rs 5,749
(Rs 1,147 per licensed passenger)
Passenger Carrying Three Wheeled Electric Vehicles (More than 17 passengers) - Rs 13,177
(Rs 806 per licensed passenger)
Passenger Carrying Motorized Two Wheeled Electric Vehicles Up to 16 KW Rs 732
(Rs 493 per licensed passenger)
More than 16 KW Rs 1,916
(Rs 493 per licensed passenger)
Quadricycle Up to 500 CC Rs 2,539
(Rs 1,214 per licensed passenger)
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Use of Commercial Vehicle Insurance Premium Calculator for Old & New Vehicles

A commercial vehicle insurance 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.

Commercial Vehicle Insurance Premium Calculator for New Vehicles:  

When it comes to a new commercial vehicle, a multitude of insurance plans may offer coverage. A premium calculator can be used to check the premium of different plans and choose the best plan. Moreover, it will help you check the increase in premium with each add-on that you select as new cars will be eligible for all add-on covers. This way you can decide which add-on cover you want to buy under your commercial vehicle insurance policy.

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.

Commercial Vehicle Insurance Premium Calculator for Old Vehicles:

The premium of a commercial vehicle reduces with age and so does its insurance premium. Besides, most add-on covers are not available for cars 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:

Purchase Insurance Online

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

Build Your NCB

No claim bonus (NCB) is a renewal benefit that you get when you do not raise a commercial vehicle insurance claim. 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.

Install Security Device

Another way to reduce your commercial vehicle insurance premium is to install anti-theft devices, such as hooters, in your vehicle. If you install an anti-theft device separately, your insurer will provide a 5% 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).

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 get expired. 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.

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.

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.

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.

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Written By: PolicyBazaar

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