• Calculate Car Insurance Premium Online

    Car Insurance
    • Protect yourself with third party or comprehensive cover
    • Use bumper to bumper policies to reduce your liability
    • Enjoy facilities like zero depreciation and roadside assistance covers
    By Muktha | 14 Nov 2019

    As having a car insurance is mandatory in India, it is vital that you as a car owner buy an insurance that covers all your insurance requirements and protects you from any future liabilities. Due to the increasing demands for online purchase of insurance, most of the insurers now have online websites where you can buy or renew a car insurance policy online. These websites have a special tool to calculate your car insurance premium based on the data you provide for the specified parameters. This tool that they use is called a Premium Calculator.

    What is Car Insurance Premium Calculator?

    Car Insurance Premium Calculator is an online calculator provided by insurers on their website for hassle-free and paperless calculation and approval of a car insurance premium. The calculator uses the data that you provide for the specified parameters to calculate and come up with the right premium amount.

    Car Insurance Premium Calculator
    Car Insurance Premium Calculator

    Key Features and benefits of Car Insurance Premium Calculator

    Car Insurance Premium Calculator comes with really interesting features that make it every car owner’s favourite:

    • Compare various insurance plans before making a choice
    • Hassle-free and easy
    • Time-saving and instant calculation of insurance premium
    • Instant insurance approval and payment
    • Easily accessed from anywhere

    How to Use a Car Insurance Premium Calculator?

    Using a car insurance premium calculator is easy and straightforward. The calculator has a simple program interface that makes it easy for any customer to come online and use it without any assistance. The calculator present on the web page will have a number of parameters asking for personal details, vehicle details, etc. that need to be filled in with accurate information by the consumer. Your only job is to provide relevant and accurate data against these parameters. After you have provided all the necessary information, you need to click on the ‘calculate’ button that appears on the bottom of the web page. As soon as you click on the button, the calculator takes all the information provided by you and starts assessing them to calculate your insurance premium. Once the insurance premium is calculated, the calculator will quote the premium on the webpage. You will have the option to agree or disagree with the quoted premium as per your judgment. If you do agree with the quote, you will be directed to another page that may require you to fill in further details as requested by the insurer. After this, you will be redirected to the payment page where you need to pay your premium and buy the insurance.

    Factors That Influence Your Car Insurance Premium

    Car insurance premium depends on a number of variables and can vary from person to person depending on certain factors:

    • Geographical location
    • Age of the car and the driver/owner
    • Driving record and driving experience
    • Claims history
    • Previous insurance details if any
    • Manufacture, model and make of the vehicle
    • Car parts or car accessories fitted
    • Insured’s Declared Variable (IDV)
    • Fuel type and use of vehicle
    • No Claim Bonus (NCB)

    Details* Required for Calculating Car Insurance Premium

    When you buy Insurance for a new/used car:

    • Vehicle Details:
    • Vehicle owner - Individual/organisation
    • Insured's Declared Value (IDV)
    • First Registration Date/Sales Invoice Date
    • Effective Driving Licence
    • Manufacturer’s Name
    • Registration City
    • Vehicle Make and Model
    • Additional Coverage for Your Vehicle (Optional):
      • IDV for Electrical Accessories
      • IDV for Non-electrical Accessories
      • IDV for LPG/CNG kit
    • Personal Accident Coverage (Optional):
      • For paid driver
      • For named passengers
      • For unnamed passengers
    • Liability Coverage:
      • For paid driver
      • For employees
    • Personal Details:
      • Name
      • E-mail Address
      • Mobile Number

    When you renew motor policy from the same insurer

    • Expiring Policy Number

    When you renew motor policy from another insurer

    • Vehicle Details:
    • Vehicle owner - Individual/organisation
    • Insured's Declared Value (IDV)
    • First Registration Date/Sales Invoice Date
    • Effective Driving Licence
    • Manufacturer’s Name
    • Registration City
    • Vehicle Make and Model
    • Details of Previous Policy:
    • Policy Type - Comprehensive/Liability Only
    • Policy End Date
    • Policy Start Date
    • Personal Details:
      • Name
      • Mobile Number
      • E-mail Address
    • Additional Coverage for Your Vehicle (Optional):
      • IDV for Electrical Accessories
      • IDV for Non-electrical Accessories
      • IDV for LPG/CNG kit
    • Personal Accident Coverage (Optional):
      • For paid driver
      • For named passengers
      • For unnamed passengers
    • Liability Coverage:
      • For paid driver
      • For employees

    *Please note that there could be slight variations in parameters used by the premium calculator depending on the insurer.

    Why you should use a car insurance premium calculator 

    Listed below are some of the reasons why you should make use of the online car insurance premium calculator:  

    • Using the online car insurance premium calculator, you can make a comparison between car insurers and choose the one offering you a policy that offers good coverage and is well within your budget. 
    • Makes the process of calculating the premium simple and you wouldn’t have to depend on an insurance agent to give you the premium quote.  
    • You can plan your finances before availing a car insurance policy by knowing the approximate premium cost.  
    • You’ll be able to get the best car insurance policy with the best deal.  
    • By entering the parameters to calculate the car insurance premium, you will understand what insurers take into consideration when setting the premium rate of a car insurance policy.  

    Factors that decide your car insurance premium 

    Listed below are the key factors that insurers take into consideration when setting the premium rate of a car insurance policy:  

    • The vehicle you own 

      The type of car owned by the potential policyholder is one of the main factors that decides the car insurance premium. Car insurers take into consideration the make and model of the car, the year it was manufactured, and the fuel variant of the car – diesel, LPG/CNG or petrol.  

    • The type of car insurance policy you choose 

      There is a huge difference in the premium cost between a third-party liability car insurance policy and a comprehensive car insurance premium. The premium rates for a third-party car insurance policy are revised and set every year by the Insurance Regulatory and Development Authority of India (IRDAI) and are fairly cheaper than a comprehensive car insurance policy, but the coverage is limited as well. A third-party liability insurance policy offers coverage only for the third-party involved in the accident, but a comprehensive car insurance policy offers coverage for the policyholder and the third-party. In addition, a comprehensive car insurance policy comes with damage coverage in the case of a fire, natural calamity, strike, etc.  

    • The engine capacity of the vehicle 

      The engine capacity of the vehicle is one of the main factors that decides the cost of premium of a car insurance policy, whether it is a third-party. The higher the cubic capacity of the engine, the higher will be the premium cost. For example, we’ve listed out the premiums rates for a third-party car insurance policy based on the engine capacity of the vehicle. 

      Engine capacity of the car  Premium rate set by the IRDAI 
       1,000cc or less  Rs.2,055 
      More than 1,000cc but less than 1,500cc  Rs.2,863 
      More than 1,000cc  Rs.7,890 

      * As per the premium rates set by the IRDAI in 2017-2018

    • Insured Declared Value (IDV) of the car 

      Some policyholders are under the impression that if they have a car insurance policy, they are entitled to the full claim amount as when they first purchased the policy, but this is false. When a claim is raised by the policyholder, the car insurer takes into consideration the Insured Declared Value (IDV) of the car which is basically the current market value of the vehicle following depreciation. The older the car, the higher will be the depreciation. Listed in the table below is the depreciation percentage of a car with respect to its age:  

      Age of the car  Percentage of depreciation 
      Up to 6 months  5% 
      6 months – 1 year  15% 
      1 year – 2 years  20% 
      2 years – 3 years  30% 
      3 years – 4 years   40% 
      4 years – 5 years   50% 

      For cars that are more than 5 years old, the coverage that will be extended, following an accident or mishap leading to the damage of the vehicle, will be an agreement that will be made between the insurer and the policyholder at the time of purchase or renewal of the car insurance policy.  

    • Premium discount options 

      Customers and policyholders that wish for a premium discount can get one in the following ways:  

      • Claim-free years 

        Policyholders can get a premium discount at the time of renewal of the policy if they’ve had a claim-free year, or in other words, a No Claim Bonus. For every claim-free year, the policyholder is eligible for a higher premium discount as is mentioned in the chart below.  

        Number of claim-free years  No Claim Bonus discount percentage 
        1 year  20% 
        2 years  25% 
        3 years  35% 
        4 years  45% 
        5 years  50% 
      • Opting for voluntary deductibles 

        There are 2 types of deductibles - compulsory deductibles and voluntary deductibles. For every claim, the policyholder will have to pay the compulsory deductibles, but if he/she chooses the voluntary deductibles option then the policyholder will be required to share the coverage with the insurer for damages caused to the vehicle.  Hence, by opting for the voluntary deductibles option, the insurer reduces the premium of the car insurance policy.  

      • If you’re part of an association and have taken safety measures for your vehicle 

        If the customer is part of the Automobile Association of India, he/she might be eligible for premium discounts. In addition, if the policyholder has installed anti-theft devices, parking sensors and has a private parking space, the insurer might reduce the premium of the car insurance policy.  

    • Personal details of the policyholder 

      When setting the premium rate for a comprehensive car insurance policy, insurers take into consideration the age of the applicant, the marital status, his/her profession, gender and the location where the car is registered and where it will be driven. If the car is registered in a city with dense population, then the premium rates will be set higher as the chances of an accident occurring are a lot more as compared to a place that is sparsely populated. In addition, for cars registered in areas where car thefts occur frequently, then the premium will be set higher.  

    • Choice of add-on covers 

      If the policyholder chooses add-on covers to enhance his/her coverage and reduce the out-of-pocket expense following a claim, then for each add-on cover purchased by the policyholder, the premium of the car insurance policy will increase significantly.  

    Car Insurance Premium Renewal

    Car insurance premium renewal is similar to buying a car insurance for the first time. You need to provide details for the parameters mentioned above and let the calculator do the rest. Apart from this, you also need to schedule a survey appointment with the insurance executive, this is mandate part of the renewal process. The executive comes and checks your vehicle for any pre-existing damages. You can book the appointment via the online website of the insurer. You can renew your car insurance before it expires or after an accident and claim settlement.

    Tips to Reduce Car Insurance Premium

    If you are unaware of ways to reduce your insurance premium, here are few tips that might help you:

    • Accumulate No Claim Bonus for every claim free year
    • Insurers give special premium discount if you are a member of Automobile Association of India (AAI)
    • Installing safety devices like anti-theft device, a navigation device, etc.
    • Don’t buy expensive vehicle if you want low insurance premiums because higher the price of vehicle, higher would be the premium
    • Don’t add any riders to your base policy unless it’s absolutely necessary
    • Opt for voluntary deductibles when you buy the car insurance

    FAQs

    1. Is it a must to use the premium calculator before purchasing a car insurance policy? What is the use of it?
    2. The car insurance premium calculator allows potential car insurance policyholders to plan their finances in advance prior to purchasing a car insurance policy. The car insurance premium calculator takes into consideration a number of factors and gives the customer the approximate cost of the premium of the policy. Some of the factors that are taken into consideration are the age of the vehicle, make and model of the vehicle, location of where the car will be driven, the engine capacity of the vehicle and if the car has any safety features. Depending on the input of the customer, the premium calculator will display the approximate cost of the car insurance policy.

    3. Is the car insurance premium calculator used to calculate the third-party insurance policy premiums?
    4. No, the car insurance premium calculator is typically for the comprehensive car insurance policy and not the third-party insurance policy. This is because the premium rates are set for the third-party insurance policies by the Insurance Regulatory Development Authority of India (IRDAI) and every year the premium rates are revised. When it comes to a comprehensive car insurance policy, a number of factors decide the premium.

    5. Is it possible to reduce the premium of the car insurance policy?
    6. Yes, insurers take into consideration the risk factor when setting the premium of the car insurance policy. If the policyholder proves that the chances of risk are lower, the insurer will offer a better premium rate. The premium of a car insurance policy can be reduced if the car owner has installed safety devices, parking sensors, if he/she is part of an automobile association or is a reputed professional such as a doctor, engineer, scientist, and so on.

    7. Can you tell me why there is a drastic difference in premium cost between a third-party insurance policy and a comprehensive car insurance policy?
    8. The premium of the third-party insurance policy is set by the Insurance Regulatory Development Authority (IRDAI) of India and for a particular vehicle class, the premium is standard. The comprehensive insurance policy depends on the risk factor of insuring the individual. On the other hand, the third-party insurance policy only offers coverage for the third-party involved in the accident and with such a policy, the policyholder will have to pay for the cost of repairs for his/her own car following an accident. A comprehensive car insurance policy is a lot more expensive as it comes with third-party liability, own damage cover and personal accident cover, basically complete protection for the policyholder.

    9. Will the car insurance premiums be affected following the mandate for the long-term third-party insurance?
    10. Yes, following the mandate of the Supreme Court, the premiums of car insurance policies are all set to get a lot more expensive as for the 3-year third-party car insurance policy, the policyholder will have to make a one-time payment. However, policyholders will be insured for a longer period and won’t have the hassle of making yearly renewals of their policy.

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