A car insurance policy is a compulsory requirement for car owners. That is why every car owner buys a car insurance policy. However, many don’t know how the premium is calculated for the policy. A car insurance calculator helps in these cases. The calculator helps in calculating the premium of the car insurance policy based on the details of the car.
A car insurance cost calculator is a tool that you can use to see the exact amount of premium coverage you should be paying. It allows you to do check and compare premium quotes from different insurance company’s premium calculations within seconds.
Just input some basic details about your car and sit back to see the accurate premium figure that you have to pay for the car coverage. With the help of this, an individual can go with the best car insurance plan within his/her budget.
There are plenty of car insurance companies in the market today that offer fantastic car insurance benefits, but going through so many plans, checking the benefits and features, and selecting the one that is right for you can be an overwhelming process. This is where a Car Insurance Premium Calculator can come in very handy.
Real Life Scenario:
Arjun is an Ancient (following Old Methods & Traditions). He has insured his car with the best insurance company. If he has any queries, and doubts regarding car insurance policy he visits the insurance company on him every single time.
Suddenly one day he is sick and not able to go to the insurance providers to choose the best insurer for insuring his car insurance policy. Then Arjun’s friend told him about the car insurance premium calculator and its importance.
But Arjun refused to buy online. Suresh explained in detail that buying online and comparing car insurance premiums online will make his time and money savings. And by comparing online you can know which company is best and gives best coverages. You can also do this process within 5 minutes easily at PolicyBachat.
Table of Content:
What is a Car Insurance Premium Calculator?
A car insurance calculator is an online tool that enables a person to find, compare and buy car insurance quotes from the different car insurance companies in India, based on your requirements you can calculate quotes of your premium and get the best car insurance plan as per your needs.
A car insurance premium calculator is the ultimate tool provided by insurance companies. Every insurance company provides car insurance premium quotes online. To know the exact premium on your vehicle fill out the mandatory fields about the vehicle and policy on the 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 of car insurance premiums. A car insurance calculator is a valuable tool for every policyholder to configure the exact plan for their need.
With this online tool car insurance calculator buyers do not need to guess the premium amount, can evaluate policy through specifications, and buy the best insurance policy. An insurance calculator is useful to know the coverage limits, deductibles for the premium.
Why use a Car Insurance Premium Calculator?
Your car is one of your prized possessions. It is not just a mode of transportation, but a very important part of your daily life. Safeguarding something as important as this from unfortunate damages, accidents or thefts is necessary. With our car insurance calculator, you can ensure that your car and the lives of your loved ones are protected. It is important to choose the right insurance for your car, and doing so via a car insurance calculator can be extremely beneficial.
In India, it is mandatory to get your vehicle insured. Though the flexibility of choosing either a comprehensive or a third party insurance policy is advantageous, it brings with itself a certain set of challenges, and these challenges can be easily confronted through car insurance calculators.
- Time Effective
- Setting the IDV
- Help you decide Add-ons
- Helps in finding the right insurer
- Price Points
- Compare side by side
- Get quotes for old and new cars
- Easy decision making process.
The car insurance premium is calculated based on the below mentioned formula.
Own damage premium – (depreciation + NCB) + Liability premium
Look Ahead Premium While Buying Car Insurance:
When it comes to protecting your car against accidental damages or losses, you need to look beyond the premium of the insurance plan. Apart from the cost, it would be best to consider other vital factors such as
- The insurer's services,
- Ease of insuring your vehicle,
- Claim settlement process, and
- Customer service.
Consider the above factors while shopping for car insurance for wide-ranging benefits apart from the affordability of the insurance plan.
How does a Car Insurance Premium Calculator work?
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 a 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 a car on our website by entering the details in the RC copy.
Make & Model
The variation is due to the loss ratio of the insurance companies with these particular make & models.
Insured Declared Value
Higher the IDV, the higher would be the premium. Normally for each passing year, IDV will be reduced by 10% due to the depreciation of the Car.
The third party premium for cars is classified based upon the engine cubic capacity and is higher for higher cc engines.
If there are 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.
Age of the vehicle
Vehicles whose age falls within the first 5 years are charged a high premium compared to those above 5 years of age. This is because as the age of the vehicle, their value is depreciated due to wear and tear.
The loss ratio is a ratio of losses paid out to premiums earned, expressed as a percentage.Loss Ratio = Premium Collected – Claims Paid.
Benefits of Car Insurance Premium Calculator:
A car insurance calculator is a very helpful online tool that helps you to calculate and figure out the insurance premium cost for your car/vehicle. As a car owner, you will become aware of the options available in the market.
- It helps you make a well-informed decision while buying a car insurance policy
- As manual calculations are avoided, car insurance premium calculator saves a lot of time
- Car insurance premium calculator is a reliable, hassle-free, and convenient way to find the best option that suits your needs and requirements
- The process of choosing the right car insurance policy is completely unbiased as there is no involvement of agents or middlemen
- A car insurance premium calculator offers the convenience of use from anywhere, thereby eliminating the need to speak to agents
- The car insurance premium calculator also highlights various factors, apart from price, that is used for a fair comparison of car insurance policies
- This tool is an effective way of educating yourself and choosing the best car insurance policy.
- Easy to use
- Save a lot of Time
- Clear Idea
- It’s free & clear
- Customize to your needs.
- Know the Premium earlier
- Plan your Finances
- Select the Right Plan
- Upgrade Your Coverage
- No Agent Needed
How is the Car Insurance Premium Calculated?
Though every company has a unique way of calculating your car insurance premiums, a basic roadmap that is given below is followed by the car insurance companies to determine your car insurance premium:
- The premium is calculated based on factors mentioned earlier
- Cost of riders or add-on(s) is added
- NCB is deducted from the amount (after deduction of discounts)
- Discounts are deducted if any
- Liability charges decided by IRDAI are added
- GST charges are added.
||Car Insurance With NCB Amount
|Ex showroom Price
|Insured Declared Value
|Own Damage Premium
|No Claim Bonus Discounts
|Total Own Damage Premium
|Personal Accident Cover
|Legal Liability Paid to the driver
|Compulsory Third-party Cover
Factors that Effect Car Insurance Premium Calculator:
Here are some crucial factors which determine the calculation of premium amount for car insurance:
- Car’s manufacturing year: Older cars have lower IDV values which indicates that the premium for the vehicle will be comparatively lesser than new vehicles with relatively higher IDV values.
- Geographical location: Insurance providers also rate the premium according to the place where the insured car will be mostly driven. For instance, areas with a higher traffic density such as urban cities will be charged higher premium rates than rural locations or areas which have lower risks and traffic density.
- Cubic Capacity: The car’s Cubic capacity also helps determine the premium for the Own Damage cover. The car’s make, model, and variant also affect the premium of your car’s insurance coverage.
- No claim bonus (NCB): No claim bonus is a discount on the premium for Own damage cover when no claim was filed during the tenure of the chosen policy. This is provided to you for the number of years who did not make a car insurance claim.
- Vehicle owner’s age: According to track records, insurers consider that vehicle-owners below the age of 25 years are more likely to be involved in a mishap or road accident. This is why individuals aged between 18-25 years tend to pay a higher premium value for coverage than others.
- The fuel type required to run the vehicle: The premium for CNG (Compressed Natural Gas) fitted vehicles is higher than the premium charged for coverage of regular petrol/diesel run vehicles.
- ARAI Anti-theft discount: Vehicles that have ARAI (Automotive Research Association of India) approved anti-theft devices fitted are entitled to get 2.5% off on the premium rates.
- Insured Declared Value (IDV): Insured Declared Value is the maximum amount that an insurer pays to a policyholder in case of total loss or theft of the vehicle. The IDV depends on the brand, manufacturer's selling price, model of the vehicle, RTO details, etc. It affects the own damage premium of the insurance policy.
|Age of the Vehicle
||% depreciation of fixed IDV
|Not exceeding 6 months
|Exceeding 6 months but not exceeding 1 year
|Exceeding 1 year but not exceeding 2 year
|Exceeding 2 years but not exceeding 3 year
|Exceeding 3 years but not exceeding 4 year
|Exceeding 4 years but not exceeding 5 year
How to use Car Insurance Premium Calculator?
The user-friendly car insurance price calculator will require you to input certain details before it can do the calculations for you.
Basic Details: Here, you will have to fill in your basic details. This would include your name, mobile number, etc.
Registration Information: Enter the registration details of your car, along with the production year.
Brand of your car: The car insurance calculator will ask for the brand information of your car.
Model Number: Once you give the brand details, you will have to choose the model of the car along with the variant.
Fuel Type: The calculator will ask for the type of fuel your car uses— petrol, diesel, or battery operated.
Insurance Claim History: The calculator will ask you whether you have any existing claims or not. In case you don't have any existing claim, you will have to answer another question regarding your eligibility for a no-claim bonus.
Get Results: The Car insurance policy calculator will compute all the factors and give you a figure for different types of insurance coverages. You can also incorporate other add-on factors to fine-tune things to adjust to your needs so that you obtain a more exact car insurance premium figure.
Let’s understand the premium price calculation for vehicle/car insurance better with an example. For example, Mr. A wants to purchase a car insurance policy for his Hyundai i10 Asta. Mr. A can find the following premium quotes for his car/vehicle bearing the below-mentioned details:
||Standalone Own-Damage Plan
|Engine Capacity: 1197 cc
|Fuel Type: Petrol
|Registration City and Year: Noida and 2018
|Policy Tenure: 1 Year
Where do I Find Car Insurance Premium Calculator?
You can find best, easy, ad reliable car insurance premium calculator online at PolicyBachat. Wondering where will you find an old or new car insurance calculator? To make this process easier, let us assist you. Here’s one of the best car insurance calculator’s available online.
Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.
- Step 1: Go to compare car insurance quotes online at PolicyBachat.com
- Step 2: Fill in the required details select your Car Model & Variant, RTO Location, Registration date, and Email address.
- Step 3: Click on the “START SAVING MONEY”.
- Step 4: Choose between a Third-Party Liability Only and a Standard Package (Comprehensive Insurance).
- Step 5: Premiums with different insurance companies are displayed with low premiums
- Step 6: Select required Add-ons/Riders and discounts, or you can Edit Policy Details as per your requirement
- Step 7: After that fill in the vehicle owner details and personal details.
- Step 8: Purchase best Car Insurance Policy using online payment
- Step 9: If any queries are raised call: 1800–123–4003.
How to Reduce Car Insurance Premium Price?
Compare Car insurance premiums have been on the rise in 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 that 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 that 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, Roadside 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 technology. These online portals offer huge discounts to customers compared to offline agents. These discounts are possible due to the fierce competition in the market and the involvement of less paperwork 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 a discount on their 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 the 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 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 western countries and is now being implemented in India also. Few insurers are offering car insurance on a pay as you drive basis. Here you can select the number of kilometers you intend to drive in a particular year and pay a premium for the same.
Once you exhaust the specified number of kilometers you can refill the number by paying an extra premium or going back to the comprehensive car insurance policy. “Pay as you drive enables you to pay per kilometer driven.”
8. Avoid Break-in: It is of utmost importance 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.
Reasons to Use a Car Insurance Premium Calculator:
Here are some of the best reasons to use a calculating tool:
- Price Points: The primary reason why anyone would want to use a premium calculator is to know the exact amount you will have to pay for insurance coverage. The premium amount depends on the coverage plan you have chosen.
- Saves Time: This tool will help you save up a lot of time. You can easily get rid of doing complex calculations. It will do the entire work in a jiffy. If you use an online calculator for car premiums, you won't have many reasons to double-check it.
- Help find better Add-ons: Once you get the amount of your premium, you can decide the add-ons your budget can permit you to take. It will help you get better coverage against several types of car damage.
- Works for Old and New cars: It gives you better flexibility as you can calculate the insurance premium of new cars. You can also check out the same tool as a used car insurance premium calculator if you need to ascertain what would be the insurance coverage amount if you are buying a second-hand car.
Calculating premiums for New and Old cars:
In your car insurance policy, your premium is dependent on the age of your car. Therefore, the car insurance premium for a new car may be higher than an old car. However, rest assured that you’re IDV and Sum Insured too will be higher since your car is brand new.
If you have an old car, your car insurance premium will be a lot lower as compared to a new car since your car insurance premium is largely dependent on the age of your car.
Additionally, an old car that is more than 5 years is also not eligible for certain add-ons such as a zero-depreciation cover and a return to invoice cover thus reducing your car insurance premium.
How Is Online Insurance Premium Calculated On An Old/used Car?
Essential vehicle details required for calculating the premium online for used/old cars:
- Make, model, a variant of the vehicle
- Fuel type
- Existing car insurance policy details (if any)
- State and city of car registration
- No Claim Bonus (NCB) or previous claim file reports and details (if any)
How Is Online Insurance Premium Calculated On A New Car?
Vehicle details required for calculating the premium for new cars:
- Car Manufacturer
- Year of manufacture
- Model of the car
- Variant of car
- Car’s registration state and city
What are the Details Required to Calculate Car Insurance Premiums Online?
Buy or Renew Your Car Insurance Policy: If you are renewing a policy, you will be asked to mention details about the previous policy such as claims filed, policy no., etc.
Insurance Type: You can choose between OD (Own Damage) and TP (third-party) or both.
Car Details: This would usually include details such as car model, fuel type, variant, engine capacity, registration number, year of manufacture, etc.
Previous Policy Details: In case you are renewing your car insurance policy, you will have to mention details such as policy no, insurance company name, claims filed in the year, etc.
Contact Details: This would usually include your details such as name, mobile number, email id, GST No. (If applicable), etc.
- The Make, Model, and Variant of Car
- Year of registration
- Existing Insurance details
- Registration number of the car
- Type of policy
- Claim history.
|More than 1500 cc
|More than 1000 cc & less than 1500 cc
|Less than 1000 cc
To ensure the exact insurance premium, we need information regarding your vehicle
1. New car insurance premium calculator:
- Car manufactured details like make & model
- Registration number, date, and vehicle registered geographical location
- Vehicle manufactured year.
2. 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 in less than 10 minutes. Grab a great deal by comparing insurance policies online on PolicyBachat.com.
Factors affecting the premium of Car Insurance Policies:
The premium of car insurance depends on the following factors:
- IDV (Insured Declared Value) of the vehicle
- Type and age of the vehicle
- Cubic capacity of the engine
- Geographical zone
- Age and gender of the owner-driver
- Fuel type
- The profession of the owner
- Voluntary deductible
- No Claim Bonus (NCB)
- Anti-theft device installation.
|Claim Free Year
Best Ways to Save Money on Car Insurance Premium:
The car insurance plan you select for your car may turn out to be a little out of your budget. In such a scenario, rather than cutting down on coverage, try following these simple ways to save on the premium amount:
- Compare before you buy
- Be a smart Claim
- Safety savings
- Increase the voluntary deductible
- Install Anti-theft and safety devices in your car.
Comprehensive Car Insurance Premium Calculator:
The Important Components of a Comprehensive Car Insurance Premium are:-
- Age of your Car
- Own Damages
- Add-on Covers
- Make and Model of your Car
- Personal Accident Cover for Owner- Driver
- No Claim Bonus
- Damages to Third-Party
- Insured Declared Value (IDV).
Third Party Car Insurance Premium Calculator:
A Third-Party Car Insurance is the most basic kind of insurance, as per law. The same covers only damages and losses against third parties, such as if your car hits a person, damages property, or vehicle. Know about the important Components of a Third-Party Car Insurance Premium.
- CC of your Car
- Personal Accident Cover for Owner-Driver
- Third-Party Damages.
A decade ago, people used to browse online and buy offline. Traditionally, people liked to buy gadgets and clothes offline as they could get the feel of them before buying. But as technology developed and delivering products became faster and cheaper, people started buying online as well.
With the combination of smartphones, internet banking, tech-savvy sellers and buyers, one-day delivery, and festive offers, online scored over offline in almost all products and services categories. Online Car Insurance Premium Calculator can help people to decide their car insurance company easily, compare companies side by side within 5 minutes at the comfort of their home, and choose the one best suit their requirement.