Car Insurance Calculator

The car insurance policyholder is required to pay the premium towards the plan. To find out the amount needed to be paid, use the premium calculator available on the website of the insurer. The simple formula determines the premium.

Premium Calculation of Car Insurance

This simple formula is required to understand the car insurance premium calculation quickly.
Car Insurance Premium = Own Damage Premium – (NCB(No claim bonus) + discounts) + Liability Premium as fixed by the IRDAI + Cost of Add-ons

Car Insurance Premium Calculator

• It is a dynamic tool available online on the websites of most of the renowned car insurance companies.
• Through the car insurance calculator, the customers can get the quote for the car insurance policy and the premium amount they are required to pay for it.
• Click on the ‘car insurance calculator’ tab and fill the basic information such as name, contact details, and address of the policyholder, followed by the official details about the insured or to be the insured car.
• The details such as – name of the company's manufacturer, the model number of a car, year of mfg, sub-type, fuel type and the registration date.
• Some companies also provide an option of choosing the insurance cover of the accessories installed inside the car.
• After filling the details correctly, click on the ‘calculate premium’ tab and the quote will be immediately displayed.
• After this, the car owner gets the tab to opt for more information and payment button to buy car insurance of your choice.

Car Insurance Premium Calculations

The “Package Policy” has two main components: ‘Own damage premium’ and ‘liability premium.’ It is noteworthy that the insurer takes the liability premium care. It is the minimum statutory premium paid as regulated by IRDAI. The liability premium amount is based on the engine power of your car.
The third-party liability premium chart (for the private cars) released by the IRDAI for the financial year 2017-18 is as follows:

Capacity	Premium effective from 1st April 2017
<1,000 cc	Rs.2,055
1,000 cc-1,500 cc	Rs.2,863
>1,500cc	Rs.7,890

Factors that Affect the Premium of the Comprehensive Insurance Policy

A. Insured Declared Value or IDV of the car:
IDV will determine the worth of the vehicle at any given point of time under the comprehensive car insurance cover. It is the maximum amount that can be claimed for any loss or accident of the car. It is one of the essential factors that affect the premium.
IDV = Ex-showroom price of the car + cost of accessories (if any) – depreciation value fixed by IRDAI
Depending on the car's age, the depreciation amount ranges from 5%-50% of the ex-showroom price.
B. No Claim Bonus (or NCB)
To reward the policyholders for being the responsible driver, insurance companies have come up with the concept of 'No Claim Bonus.' You will be entitled to the NCB discount if you haven't made a claim the previous year. If you have the NCB component in the policy, you can save up to 50% on the own damage premium.
C. Discounts
a. Installation of an anti-theft device such as the car alarm is advisable.
b. Getting the membership in Automobile Association of India (AAI).
c. Opting for the voluntary deductibles/excesses can reduce the premium.
d. The car insurers provide profession-based discounts to the defense personnel, government employees, and the doctors.
D. Age and Gender of the Vehicle Owner
Often the individuals below 25 years of age are considered as risky drivers. Hence, the insurers provide car insurance at a higher premium for people who comes under the age group of 18 years-25 yrs.
E. Model of the car
Luxurious cars such as Bentley and Audi are insured at a higher cost.
F. Location
The density of traffic is higher in cities, due to which one needs to shell out the higher amount to get the car insured.
G. Fuel type
A CNG fitted car will be expensive to insure than the diesel and petrol ones.
And, a diesel car will attract a higher insurance premium than the petrol car.
 

Premium Calculator for the Used and New Cars

Every car insurance company utilize some factors to calculate the premium for the policy. Below are some of them:

• 1. Premium calculator for the used cars -
  The online car insurance calculator tool assists in procuring the most appropriate auto insurance policy for the vehicle transparently and conveniently. To calculate the premium for the used cars, one needs to provide the following details:
  • Type of car.
  • Fuel type
  • Details of the existing car insurance policy.
  • Registration number of the vehicle.
  • Details regarding the change in ownership.
  • Claims for the previous years, as applicable.
• Premium calculator for the new cars -  
  The details one need to provide to calculate the premium for ensuring the new vehicle are
  • The name of the car manufacturer.
  • The model of the car.
  • Year of manufacture.
  • Personal details of the owner or driver.
  • State of registration of the vehicle.

FAQs

Q1. Do vintage cars receive any discounts on the auto insurance premium?
The discount of 50% will be provided on the third-party liability premium of the vintage cars. The vehicle should be certified as the vintage cars by the ‘Vintage and Classic Car Club of India’ to avail the benefit.

Q2. Can the insurance calculator tool be used while renewing auto insurance?
Yes. During car insurance renewal, compare the policies between insurance companies and decide on an appropriate plan using the excellent calculator tool.

Q3. What are the advantages of being a member of AAI?
Being a member of the Automobile Association of India (AAI), one can avail the following benefits:

• One can get an international driving permit (IDP) issued under the name of the car owner in a hassle-free manner.
• The association will guide through the process of re-registration of the vehicles.
• The automobile association has the power of transferring the ownership of a car.
• The association helps the member in getting the address details updated in the driving license.
• AAI assists in procuring the duplicate license, in case the person has lost the original document.
• The association helps in the renewal of the driving license.
• It offers a discount on the auto insurance premium.