Car Insurance Calculator - Calculate Car Insurance Premiums Online

What is a Car Insurance Premium Calculator?

A car insurance premium calculator helps you know the actual premium which you should pay for getting a car insurance policy from different car insurance companies. This helps you in comparing the available car insurance quotes easily and make the right decision.

Before even driving your newly purchased vehicle out of the dealership, obtaining insurance coverage is essential. This involves purchasing a new car insurance policy from an insurance provider. Therefore, when considering purchasing a new car, it is wise to allocate some time to determine the appropriate insurance policy.

Numerous car insurance providers are present in today's market, each offering appealing benefits. However, sifting through the array of plans, evaluating their advantages and characteristics, and ultimately choosing the most suitable option can be a daunting task. This is where a premium calculator for car insurance can be extremely useful.

Features & Benefits of Car Insurance Premium Calculator

A dynamic and efficient tool, the premium calculator has gained widespread popularity due to its advantages. Let's explore the benefits of utilising a Car Insurance Premium Calculator:

• Estimate of Costs: The calculator provides a reasonable approximation of the premium associated with a specific car insurance policy.

• Budget-Friendly Planning: Devising a plan within your financial constraints becomes effortlessly achievable through the vehicle insurance premium calculator. You have the flexibility to tailor various factors to create a customised plan.

• Simplified Comparison: You have the ability to contrast numerous plans from different companies, facilitating the selection of the optimal plan for your needs.

• Informed Add-On Selection: By employing the calculator, you can opt for car insurance add-ons while keeping the premium in mind. This allows you to modify the cost according to the supplementary benefits.

• Suitable for All Vehicles: Whether it's an older or a new vehicle, the vehicle insurance premium calculator accommodates all types of cars.

• Time Savings: The premium calculator rapidly calculates an approximate premium for your car insurance plan, effectively saving you a significant amount of time.

How is Car Insurance Premium Calculated?

You can easily calculate car insurance premium with the help of the InsuranceDekho car insurance online calculator. The premium of a car insurance plan depends on the coverage of the plan and other factors such as car's make, model, variant, fuel type, RTO location, etc. The premium for third party car insurance plans is fixed by the IRDAI and it depends only on the car's engine capacity, whereas the premium for standalone own-damage & comprehensive car insurance plans is determined by the insurance companies and varies from the policyholder to policyholder.

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 which has the following details:

1. Engine Capacity: 1197 cc
2. Fuel Type: Petrol
3. Registration City and Year: Noida and 2018
4. NCB: 20%
5. Policy Tenure: 1 Year

At InsuranceDekho, Mr. A can find the following premium quotes for his car/vehicle bearing the above-mentioned details:

(Premium Rates As On August 2023)

How to Use a Car Insurance Calculator Online?

Be it a third-party car insurance premium calculator or a comprehensive insurance premium calculator, they are designed with user-friendly interfaces, ensuring a straightforward usage process. To further simplify the process, here are the steps to follow when utilising the Car Insurance Premium Calculator:

Step 1 - Personal Information:

Upon accessing the car insurance premium calculator webpage, provide your contact information, including email address and mobile number.

Step 2 - Vehicle Registration:

Enter the registration specifics, including the registration date and the year of manufacture.

Step 3 - Make, Model, and Variant (MMV):

Input the make, model, and variant details of your car.

Step 4 - Fuel Type:

Choose the fuel type of your vehicle, indicating whether it is petrol or diesel.

Step 5 - Claims History:

Indicate whether you have made a claim previously or are eligible for a No Claim Bonus, and provide the associated details.

Step 6 - Plan Selection and Add-ons:

Select the type of insurance plan you want, be it third-party car insurance, Comprehensive Insurance, or a zero-depreciation car insurance policy. If you opt for a Comprehensive Insurance Plan, you can also include additional add-ons.

With all the information provided, the new car insurance calculator will proceed to calculate the premium and present the result.

Third-Party Liability Premium Rates

Third-party liability premium rates are regulated by IRDAI and are revised periodically. These rates are primarily based on the engine capacity of the vehicle. For example, according to recent IRDAI guidelines (FY 2022–23), the approximate annual third-party premium rates for private cars are:

• Up to 1,000 cc: ₹2,094
• Above 1,000 cc and up to 1,500 cc: ₹3,416
• Above 1,500 cc: ₹7,897

These rates aim to maintain affordability and consistency across insurers. However, actual rates can vary slightly depending on various factors such as the insurer’s underwriting policies, applicable discounts, etc.

How To Calculate Car Insurance Premium for Used Cars?

Essential vehicle details required for calculating the insurance price online for used/old vehicle:

• 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)

The insurance premium calculator for car will then estimate the premium amount based on the details provided so that you opt for the ideal car insurance policy.

How To Calculate Car Insurance Premium On A New Car in India?

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

The new car insurance price calculator will estimate the premium amount that you need to pay for your car insurance policy for your vehicle.

Here are some crucial factors which determine the calculation of premium amount for car insurance:

• 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.

• 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.

• 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, a model of the vehicle, RTO details, etc. It affects the own damage premium of the insurance policy.

• Cubic Capacity: The car's Cubic capacity also helps determine the premium for the Own Damage cover. Car's make, model and variant also affect the premium of your car's insurance coverage.

• Car's manufacturing year: Older cars have lower IDV values which indicate that the premium for the vehicle will be comparatively lesser than new vehicles with relatively higher IDV values.

• 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.

• 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.

How To Reduce Car Insurance Premium Price?

Here are some ways which can help you reduce your vehicle/car insurance premium:

1. Avoid Making Small Claims

The simplest way to lower your insurance premium is to earn No Claim Bonus (NCB) by not making any claim in a policy year. To make this happen, you should not make claims for small damages and pay them from your pocket. Also, you need to drive responsibly to avoid any accidents.

2. Purchase Car Insurance Online

Online policy purchase brings a lot of difference in comparison to buying a plan through offline mode. Comparing policy quotes online can help policyholders find an affordable plan easily. Also, insurance companies offer policies at economical prices online due to the absence of any agent, etc.

3. Install Anti-Theft Devices in Car

Installation of anti-theft devices not only ensures security to your car from theft, etc., but can reduce the yearly insurance premium by around 5 percent. However, different insurers offer discounts only on anti-theft devices certified by the Automotive Research Association of India (ARAI).

4. Renew Your Policy On Time

With timely car insurance renewal, you can avoid a lapse in the plan which will ultimately save you from getting your car reinspected. It will allow you to avail the policy at the old rate and avoid the hike in premium.

5. NCB Transfer to the New Car

You should transfer the NCB earned by you to your new car insurance policy. You can do so as the NCB is offered to the policyholder and not the car. Hence, it is prudent to retain the NCB benefit with you as it help you reduce your car insurance premium rate with the new car insurance policy.

6. Increase the Voluntary Deductible

A voluntary deductible involves contributing a certain amount toward repairs when filing a claim. Opting for a higher deductible can translate to a reduced premium. Utilising a car insurance premium calculator allows you to manage the deductible proportion, keeping the premium well within your budget.

7. Anti-Theft and Safety Devices Can Help Too

Incorporating anti-theft devices not only shields your car from theft but also lowers the insurance premium. Safety features such as airbags, ABS, EBD, and more not only enhance your car's security but also positively influence the insurance company's perspective.

In a world where financial planning is key, the car insurance calculator emerges as an essential tool. It empowers us with the ability to make informed decisions, ensuring that our vehicles are safeguarded without breaking the bank. By effortlessly estimating premiums and comparing quotes, you're taking a proactive step towards smart financial management and comprehensive coverage. The car insurance calculator is your partner in securing a smoother road ahead.