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Car Insurance Premium Calculator Online

If you are traveling without a valid insurance policy, you may end up with paying huge damage cost in forcible future. Car insurance calculator is a dynamic tool equipped by the insurance company online, helps customers to know the premium amount and quotes from different insurance providers.

Every customer have their own requirement in terms of safety features and low premium plans, insurance calculator helps to choose the suitable plan as per the customer needs. An insurance policy has a variation in price depends on specific needs; reputed insurance companies will have this “car insurance calculator”.

Understanding the process of Car Insurance Premium Calculation

Rajesh and John are colleagues working in the same MNC in Tier 1 city decided to purchase a car. Rajesh was fond of Mahindra Brand so he chose to purchase 2000cc car with advanced features in the price range of Rs.8 Lacs, while John being a mileage minded person opted for Maruti Brand with the price of Rs.8 Lacs.

Even though both of them spent the same price for purchasing the car the insurance premium paid by Rajesh was 30% higher than that of John’s. This made him search for the factors that decide the car insurance premium. Below are the factors that decide the Car Insurance Premium and you can calculate the premium for car in our website by entering the details in the RC copy.

1. Make & Model:The variation is due to the loss ratio of the insurance companies with these particular make & models.

2. Insured Declared Value:Higher the IDV, higher would be the premium. Normally for each passing year IDV will be reduced by 10% due to the depreciation of the Car.

3. Cubic Capacity: The third party premium for car is classified based upon the engine cubic capacity and is higher for higher cc engines.

4. RTO:If there is a particular RTO zones where the insurance company experiences heavy losses, then the premium charged on all the vehicles in that particular zone would be higher than those of the other zones.

5. Age of the vehicle: Vehicles whose age falls within the first 5 years are charged high premium compared to those above 5 years age. This is due to the fact that as the vehicles age, their value is depreciated due to the wear and tear.

6. Loss Ratio: Loss Ratio = Premium Collected – Claims Paid.

How to reduce your Car insurance premium

Compare Car insurance premiums has been on the rise in the recent days due to many factors such as increased loss ratio, rising maintenance costs and several other factors. Many of us are dissatisfied with the higher car insurance premiums and are looking out to reduce the car insurance premium every year.

Most of you might have been maintaining your car in good condition and the premium paid every year is not justified as no claim is made during the policy period. Let us look at the below ways to reduce the car insurance premium:-

1. Voluntary Excess/ Deductible:

Excess or deductible is the amount which the insured promises to pay in the event of a claim. Under this a part of the risk is passed on to the insured and the insured is made liable to a percentage of claim amounts.

Each insurance policy has a compulsory deductible or excess up to Rs.2000 depending on the cubic capacity of the car. The voluntary excess is the amount which the insured promises to pay in the event of the claim over and above the voluntary deductible or excess mentioned under the car insurance policy.

“By opting for higher deductible the premium can be reduced to a maximum of 35% on the own damage premium or Rs.2500 whichever is less. The maximum voluntary deductible to be borne by the customer is limited to Rs.15k under the Indian Motor Tariff.”

2. Insured Declared Value:

The other option to reduce the premium in car insurance is to opt for the lower Insured declared value in the policy copy. Lower the IDV, lower would be the premium in the car insurance policy. Car insurance renewal tips in Insured Declared value offered by the insurance company should be higher in the market at an affordable premium.

 “A small percentage of the own damage premium can be reduced by reducing the insured declared value in the insurance policy copy. It is important to maintain a balance between the IDV and the premium to be paid so that at the time of claim settlement the claim amount is not too less.”

3. Add-ons:

The riders or add-ons are the extra coverage at an extra premium provided to your car by the insurance company. These add on covers include Bumper to bumper cover, Consumables cover, Personal accident cover, Key protection cover, Road side assistance covers etc.

“The premium for these add-ons is calculated as a percentage of the insured declared value idv. By reducing the number of add-ons covers and opting only for the necessary covers your car insurance premium can be reduced drastically.”

4. Online purchase:

These days insurance is available online easily due to the advancement in the technology. These online portals offer huge discounts to the customers compared to the offline agents. These discounts are possible due to the fierce competition in the market and the involvement of less paper work with the online portals.

“We at PolicyBachat offer up to 80% on your car insurance premium from the top general insurance companies. How to renew insurance online? This can be done by paying the insurance online where the payment is directly made to the insurance company and the policy copy is shared immediately.”

5. Anti-theft device:

Cars fitted with Anti-theft devices are eligible for discount in the own damage premium. The anti-theft device in your car helps in tracing the car in case of theft compared to the car without an anti-theft device.

“The cars fitted with anti-theft devices are eligible for a discount of 2.5% on the own damage section of premium subject to a maximum of Rs.500/-“
For midterm installation of the anti-theft device a pro rate proportion of the premium discount is calculated as per tariff for the unexpired period is allowed under your car insurance policy.

Your car insurance cost depends on the extra fittings such as Anti-theft device which reduces your car insurance premium payable and the electrical fittings which increase your premium payable.

6. AAI membership:

“For a valid and recognized membership with the Automobile Associations, a discount of 5% on the own damage section subject to a maximum of Rs.200 for a private car is allowed in the Indian Motor Tariff.

Members of the Automobile Association’s such as the Automobile Association of South India, Automobile Association of Eastern India are eligible for the discount under the own damage section of the car insurance.

The Car insurance premium can be reduced by using any of the above or all of the above tips. You are advised to exercises caution at the time of selecting the voluntary deductible as it implies the amount of claim you will be bearing in case of an accident to your car.

7. Opt for pay as you drive

The concept of pay as you drive originated in the western countries and is now being implemented in India also. There are few insurers who are offering car insurance on pay as you drive basis. Here you can select the number of kilometres you intend to drive in a particular year and pay premium for the same.

Once you exhaust the specified number of kilometres you can refill the number by paying extra premium or going back to the comprehensive car insurance policy.“Pay as you drive enables you to pay per kilometre driven.”

8. Avoid Break-in: 

It is of utmost important to keep your car insurance live all the time throughout the year. Insurance companies offer higher discounts to people renewing their car insurance policies without break-in and great NCB.

“Having a break-in of more than 90 days in the policy period wipes out your existing NCB.” For best car insurance quotes visit Policybachat and get the best car insurance renewal quotes from the top general insurance companies.

Online Car Insurance Premium Calculator

Car insurance calculator is an ultimate tool to provide by the insurance companies. Every insurance company provides calculates car insurance quotes online. To know the exact premium on your vehicle fill out the mandatory fields about the vehicle and policy on car insurance calculator page.

Policyholders are in hesitation that, “are the premium paid for the right policy?” A policyholder can clarify their doubts by comparing the list car insurance premiums. Apparently, car insurance calculator is a valuable tool for every policyholder to configure the exact plan for their need.

By this online tool car insurance calculator buyer no need to guess the premium amount, can evaluate policy through specifications and buy the best insurance policy. Insurance calculator is useful to know the coverage limits, deductibles for the premium.

Benefits included in car insurance calculator

  • Car insurance premium comparison is to get quotes with benefits each company provides.
  • Know yourself what are the factors that made your premium higher than another insurer.
  • You can avoid agent role and the policyholder can make his own decision in buying the policy.

“Car Insurance Premium calculation formula: Own damage premium - NCB Discount + Liability Premium”

Car Insurance Premium Renewal: Be wise in how to renew insurance online, check your renewal premium policy to get the renewal premium updated. Prefer the lowest car insurance premium rates and coverage plans with the required add-on and get more benefits in terms of a claim by comparing online insurance companies.

What are the documents required to calculate car insurance premium online?

To ensure the exact insurance premium, we need information regarding your vehicle

For new owned vehicle, documents required: 

new car insurance premium calculator

  • Car manufactured details like make & model
  • Registration number, date and vehicle registered geographical location
  • Vehicle manufactured year

For pre-owned vehicles, documents required are

old car insurance premium calculator

  • Current insurance policy copy
  • Previous car owner details
  • Previous claim settlement details.

Make your own decision in choosing the policy by car insurance calculator online, a hassle-free process to get the right policy under 10 minutes. Grab a great deal by comparing insurance policies online on PolicyBachat.com.

How to calculate First Party Premium in Car Insurance?

Car insurance policy has two sections namely First party/ 1st party section and Third party section. With the introduction of long term motor insurance policies it is possible for the customers to take stand-alone first party car insurance or own damage insurance.

Prior to the introduction of long term motor insurance it was not possible for the customers to only opt for first party insurance, every car which ply in public place has to be insured for third party and therefore a motor insurance policy would contain both the first party and third party insurance.

The premium for first party in car insurance is decided by the insurance company within the limits set by the IRDA. IRDA decides on the third party premium rates which are subject to change every year depending on the previous year loss ratio, GWP collected etc.

The first party premium rates differ from company to company and depend on many factors such as the cubic capacity of the car, place of registration, make and model of the car, age of the car, additional coverage required etc.

Most of the companies decide on the first party liabilities premium based on the loss ratio available for that particular model and hence some companies may charge heavy premium for your car while some companies may charge less premium. The premium for first party is calculated by the insurance companies using the below table:

Description Condition Premium
Basic First party premium As fixed by the insurance company Rs.40000
Less: Company discount 70% -(Rs.32000)
Premium after company discount   Rs.8000
Less: Anti-theft device discount 2.5% up to Rs.500 -(Rs.200)
Premium after anti-theft device discount   Rs.7800
Less: Automobile Association of India (AAI) discount 5% up to Rs.200 -(Rs.200)
Premium after AAI discount   Rs.7600
Less: No Claim Bonus discount 20% -(Rs.1520)
Final First party Premium after discount   Rs.6080
Add-ons Bumper to Bumper, Consumables, Road side assistance, Invoice cover, Key protection etc. +(Rs.10500)
Final First Party premium including add-ons   Rs.16580
  • The others factors deciding the premium of car insurance is the age of the car. Age of the car is divided into three types; Less than 5 years, More than 5 years and Less than 10 years, More than 10 years. The first party premium is decided by the insurance companies based on the age of the vehicles.
  •  Few insurance companies offer high discounts for new vehicles and vehicles aged above 5 years.  Few insurance companies offer good discounts for vehicles below 5 years and vehicles above 10 years. All this depends on the loss ratio of the car in the previous year where the loss ratio is also calculated age wise.
Age of the CAR Less than 5 years
More than 5 years and less than 10 years  
More than 10 years  
  • Another factor deciding the first party premium is the Place of registration of the Car. All the RTOs are classified into two zones; Zone A includes all the Metro cities and the state capitals while Zone B includes all places other than those in the Zone A.
  • The cubic capacity of the car also decides the premium of your car insurance plan. Cubic capacity can be defined as the size of the car with related to the engine capacity. Higher the cubic capacity, higher would be the size of the engine of the car. Bigger the engine, higher would be the performance of the car.
  • The cubic capacity is divided into three types for insurance purpose; Cars with cubic capacity less than 1000cc, cars with cubic capacity exceeding 1000cc and not exceeding 1500cc, cars with cubic capacity exceeding 1500cc. The third party premium and first party premium depends on the cubic capacity of the car and fuel type of cars. Higher the cubic capacity of the car, higher would be the premium of your car insurance policy.
Cubic Capacity Less than 1000cc
More than 1000cc and less than 1500cc  
More than 1500cc  
  • The first party premium of your car insurance policy can be reduced by installing an anti-theft device approved by the ARAI. The premium can be reduced 2.5% or up to Rs.500 whichever is lower. Anti-theft devices help in reducing the theft of cars as burglars prefer cars without anti-theft devices.
  • Also the first party premium can be reduced by taking the membership from the Automobile Association of India. Insurance companies offer discounts of 5% of the first party premium or Rs.200 whichever is lower.
  • Also for calculation of car insurance premium is reduced if you opt for higher voluntary excess or deductible. The higher deductible you opt for, the lower would be the premium. Voluntary deductible is the amount of claim which you would bear at the time of claim settlement.

how to calculate car insurance premium in India? check it out on our website, for more information contact our customer support at toll-free: 1800-123-4003.

Coverage under first party premium:

First party premium insurance cover the loss or damage to the property (car) of the first party (insured) due to an insured peril at the time of accident. The list of perils covered under the first party car insurance is mentioned below:

  • Loss or damage to the car due to Fire
  • Loss or damage due to Natural catastrophes such as Cyclone, Typhoon, Earthquakes, Storms etc.
  • Loss or damage to the car due to road side Accidents
  • Loss or damage to the car due to manmade disasters such as Strike, Riot and Malicious damage.
  • Loss or damage to the car due to any other unfortunate event not caused deliberately.

For best Car insurance premium calculator price at the time of renewal please click on the link Car Insurance and get the cheap car insurance rates, where we have a dedicated team of agents to assist you with your first party insurance requirements.

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