Car Insurance Calculator

An online car insurance calculator makes it easier for you to calculate the own damage premium for your car insurance policy based on factors like make, model, variant, RTO, etc of your car. Calculate the estimated premium of buying motor insurance for your four-wheeler by using a car insurance premium calculator on Policybazaar.com

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What is a Car Insurance Premium Calculator?

A car insurance calculator is a free online tool that lets a car owner calculate the estimated premium amount for a car insurance policy. It calculates the actual premium that you would have to pay for buying an insurance policy for your car and thus, helps you compare and pick the right plan within your budget. All it needs are the details of your car, including its age, make & model, fuel type, etc. to calculate the premium amount.

With the help of a car insurance premium calculator, you can compare different plans and see if they meet your coverage requirements as well as your budget. This valuable tool can be used by all car insurance buyers as it is available for free.

How To Use Car Insurance Premium Calculator Online?

In order to use the car insurance calculator online on Policybazaar.com, follow the steps mentioned below:

Step 1: Visit the “Car Insurance Calculator” page on Policybazaar.com

Step 2: Select your car's model, make, fuel type and variant

Step 3: Select the RTO of your car from the given list

Step 4: Select the year in which you purchased your car

Step 5: Select “Yes” if you have previously made a claim, else select “No”

Step 6: Now press 'Calculate' button

Step 7: The calculator will now display the estimated own damage car insurance premium and Insured Declared Value of your car.

Details Required for Calculating Insurance Premium for your Car

Online car insurance premium calculator is simple and easy to use. Car insurance quotes from car insurance companies will be provided depending on the inputs provided.

Following details need to be filled in the car insurance calculator online-

• Car Model
• RTO
• Car Registration Year
• Car Variant
• Manufacturer
• Fuel type
• Claim details
• No Claim Bonus discount

Benefits of Car Insurance Calculator

Online car insurance calculator provides you with instant car insurance quotes on both comprehensive and third-party insurance policies. Listed below are some of the major benefits of using a car insurance calculator online:

• Premium Estimation- It makes the premium calculation process easy and convenient and gives an estimate based on the car specifications and coverage selected
• Works for Both New and Old Cars- It is easy to get quotes for both new and old cars. The same online calculator works for both old and new cars.
• Find the Right Add-ons- You can compare premiums and choose the right insurance plan with the right add-on covers that suit your pocket
• Make the Right Selection- See for yourself how changing variables of coverage change your premium. The results give an estimate of the premium based on the customizations.

How is Car Insurance Premium Calculated?

To know how car insurance companies calculate premium check out this simple formula.

Car Insurance Premium = Own Damage Premium – (No claim bonus + discounts) + Third Party Liability Premium that is fixed by the Insurance Regulatory and Development Authority (IRDAI) of India. 

Here is an example of car insurance premium calculation for a car that’s registered in 2024 so that there is no room for any confusion.

*Disclaimer: The above data is for Bundled Policy as of 13.11.2024 for a Tata Nexon Smart (o) brand new car registered under DL1 RTO.

How to Reduce Car Insurance Premium?

The premium of a car insurance policy can vary from the kind of coverage the policyholder has opted for and some other factors like IDV, add-on covers, model, make, etc. Here are some simple ways in which you can bring down your car policy premium:

1. Do not Raise Small Claims

   When the policyholder raises a claim for minor damages, they lose the benefit of the No Claim Bonus (NCB) which if retained can provide them with a discount from 20%-50% on their renewal premium. Thus, try retaining your NCB by not raising minor claims. For instance, if your car insurance NCB is Rs 10,000 and your repair charges are Rs 5,000, you might want to pay it off by yourself. 

2. No Claim Bonus Transfer

   The policyholder should know his right and transfer the No claim bonus benefit after purchasing a new car and a new car insurance policy. When a policyholder hasn’t raised a claim in the previous year makes that policyholder eligible for NCB benefit that is decided by the IRDAI.

3. Renew Policy on Time

   In case the policyholder does not renew the policy within the grace period, the insurer cancels the insurance policy. In such a situation, you are required to pay more for a new car insurance policy. Thus, make sure to renew policy on time to avoid paying a higher premium for a new car policy.

4. Installing Anti-theft Device

   If the policyholder has installed any anti-theft device in the car then the insurer will provide a 2.5% or a maximum of up to Rs. 500 discount on the premium. The discount on car insurance premiums is provided to those who install the anti-theft device that is certified by the Automotive Research Association of India (ARAI).

5. Try Not to Modify Your Car

   Some car enthusiasts who have a thing for modifying their cars install new alloy wheels, woofers, headlamps, etc. This becomes one of the major reasons behind the increment in the premium rate of a car insurance policy. Thus, try not to modify your car if you want to pay a lower premium.

6. Opt for Pay As You Drive Insurance

   Under a Pay as you Drive or Pay as you Go car insurance, the insurer charges a premium as per the kilometres driven by you, which is fixed at the time of policy purchase. However, the policy coverage and benefits still remain the same as a comprehensive car insurance policy. For those who drive occasionally, a PAYD insurance a great option to cut the premium a bit.

7. Buy Policy Online

   Buying a car insurance policy online can be affordable. When a buyer opts for an online purchase, they get to compare different policies and purchase the one that suits their requirements and budget. Moreover, you can also make use of a car insurance calculator before buying a car policy so that you get the right deal. Also, it reduces the agent’s fee that you pay while buying policy offline.

Third-Party Liability Car Insurance Premium Rates

Below are the third-party car insurance premium rates for 1 year policy effective from June 1st, 2022. These rates are fixed by IRDAI:

How to Calculate Car Insurance Premium for New and Old Cars?

The following information needs to be provided while calculating car insurance premium online for new as well as used cars with an online insurance calculator-

How to Calculate Insurance for New Car?

The insurance for a new car depends on the type of plan that you are buying. If you opt for a comprehensive policy, the new car insurance premium will consist of two parts- third-party and own damage (OD) premium. 

The third-party premium for all cars is decided by the IRDA. However, the own damage premium is calculated with the help of the following formula:

OD Premium of a new car = Insured Declared Value (IDV) of the new car x insurer's premium + Add-on covers- Discount

Besides using the formula to calculate the new car insurance premium, one can use a new car insurance calculator to determine the premium of your new car.

How to Calculate Insurance for Old and Used Cars?

Based on the below mentioned factors, a car insurance calculator calculates the premium of old cars:

• Type of the car
• Fuel type- CNG, Diesel or Petrol
• Claim history
• Depreciation value
• Details of the last car insurance policy
• For second-hand cars, details of the owner are required

Factors that Determine Car Insurance Premium Value

What goes into deciding car insurance premium while using an online premium calculator is enlisted below:

• Car Make, Model and Variant- For obvious reasons, high-end cars like Audi and Bentley are insured at a higher price than a budget car like Alto and i10. On similar grounds, SUVs are insured at a higher premium than any of the family cars.
• Car Fuel Type- Compared to a petrol/diesel car, you’ll have to pay a higher premium for insuring a CNG-fitted car.
• Year of Manufacture- The older your car, the lesser is its Insured Declared Value (IDV) and the lesser the IDV, the lesser is the premium.
• Geographical location/RTO- Since the traffic density is higher in the urban areas, car insurance premium is slightly higher in comparison to the cars insured in the sub-urban areas.
• Voluntary Deductibles Access- Voluntary deductible access is the minimum amount that you declare to bear at the time of claim settlement. The higher deductible you opt for, the lower will be your car insurance premium.
• Anti-theft Device/Safety Features- Insurers provide 2.5% off on the premium if the insured car is fitted with an ARAI-approved anti-theft device or any other safety features.
• No Claim Bonus - No Claim Bonus is offered to the policyholder for every claim-free year. It is a cumulative discount and varies from 10% to 50%. NCB can be transferred to another car or policy