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Car Insurance Premium Calculator Online

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

Car Insurance Premium Calculation

Every customer has 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 an insurance company 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 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.

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, the 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 cars is classified based upon the engine cubic capacity and is higher for higher cc engines.

4. RTO: 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.

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

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

How to Reduce your Car Insurance Premium?

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.

 “An 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 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 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’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 western countries and is now being implemented in India also. There are few insurers who 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 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.

Factors that affect the Car Insurance Price in India:

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
  • Profession of the owner
  • Voluntary deductible
  • No Claim Bonus (NCB)
  • Anti-theft device installation

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.

  • A Car insurance premium calculator helps you take 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 convenience of use from anywhere, thereby eliminating the need to speak to agents
  • Car insurance premium calculator also highlights various factors, apart from price, that are 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.

Online Car Insurance Premium Calculator:

A car insurance calculator is an ultimate tool provided by 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 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. Apparently, 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.

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 the 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.

There are some major factors that you need to know before buying car insurance policies. Your car insurance online policy has the concept of deductibles and insurance excess which should be accessed accurately to avoid unnecessary mishaps. So while buying online insurance for cars check for the below factors.

  • Exclusions: Know in detail about your excluded situations where you will not be covered. These exclusions will generally be common for any insurer.
  • Inclusions and under what circumstances: Your inclusions are those where your accident or damages will be covered by your car insurance company.
  • Deductible costs: This deductible amount is the sum which you have agreed to pay on your own damages while signing the document. This is the deciding factor for your car insurance India premiums.
  • Car insurance premiums: Lastly check your car insurance premiums justifying the coverages you opted for. Go for a higher premium plan if you found good coverage options.

If the chosen car insurance online policy met the above factors then this plan will be the best car insurance policy for your car. Along with these, you might receive some added benefits for your good driving skills and car safety mechanisms from your insurer. Some insurance companies will offer professional discounts on certain professions.

On a final note, knowing everything about car insurance will not get you the best insurance policy. You must know the factors that affect the optimization of your online car insurance. Being a safe driver will not only keep you safe but also makes you eligible for some discounts given by your insurer.

What are the Documents Required to Calculate Car Insurance Premiums Online?

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

For new owned vehicles, 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 in 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 the 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 plies in a public place has to be insured for the 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's 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 a 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, Roadside assistance, Invoice cover, Key protection, etc. +(Rs.10500)
Final First Party premium including add-ons   Rs.16580
  • The other factor deciding the premium of car insurance is the age of the car. The 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 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 in relation to the engine capacity. The higher the cubic capacity, the higher would be the size of the engine of the car. The bigger the engine, the higher would be the performance of the car.
  • The cubic capacity is divided into three types for insurance purposes; Cars with a cubic capacity less than 1000cc, cars with a cubic capacity exceeding 1000cc and not exceeding 1500cc, cars with a cubic capacity exceeding 1500cc. The third party premium and first party premium depend on the cubic capacity of the car and the 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 by 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 premiums 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 covers the loss or damage to the property (car) of the first party (insured) due to an insured peril at the time of the 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 cyclones, typhoons, Earthquakes, Storms, etc.
  • Loss or damage to the car due to roadside 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.

FAQs of Car Insurance Premium Calculator:

Does the car model impact or affect the car insurance premium?

Yes, the car model is an important factor while calculating the car insurance premium. The Third-party premium is dependent on the cubic capacity of your car's engine. Make-model also determines the market value or the Insured Declared Value (IDV) of the car. Higher IDV usually results in increasing the premium amount.

How does the car insurance calculator help in determining the car insurance premium?

The calculator lets you select the cover, change the IDV, include add-on covers and NCB, and based on that information lets you know the premium you will have to pay to the insurer. This lets you make an informed choice before you buy the best car insurance policy.

Can I pay car insurance premiums in installments?

Yes, there are EMI options available for some insurance plans. They will be available to you on the payment page online. You can always talk to one of our advisors if you need additional help.

Does the location of the car impact the car insurance premium rate?

Yes. The location of the car is an important factor for calculating the insurance premium. The cost of the car varies in different states and cities. This has a direct impact on IDV and in turn the insurance premiums.

Why should you look beyond 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 for a holistic insurance plan. Consider these factors while shopping for car insurance for wide-ranging benefits apart from the affordability of the insurance plan.

For the 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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