A car insurance premium calculator is an effective tool that allows the potential buyer to check and compare premium quotes from different insurance companies. With the help of this, an individual can go with the best car insurance plan within his/her budget.
'Why do I need an online insurance calculator when I can directly speak to the agents about the same?'
Well, this is the most common notion among people these days. But the thing they don't understand is that these agents do charge their commission, which results in an increased premium amount. They can also share partial suggestions for their benefit.
So, before buying a car policy, you need to get an estimate of your premium amount through an online car insurance premium calculator.
Let's understand the importance of a car insurance premium calculator with an example-
Vidya is a corporate employee. The location, pay and office environment is according to her desires. However, after a few years, the office location changes, and Vidya decides to commute daily through her vehicle. She buys a new car and looks for a car insurance policy.
After a deep research, she is greeted with many car insurance plans but is unable to choose the best among them. She then decides to take the help of an agent but that doesn't work as well. Confused and frustrated, one of Vidya's colleagues suggests to her about the online car insurance plans.
She enters the required details online (vehicle number, city & RTO, car brand and variant, fuel type, etc.) and the result makes her confident about how much she should invest in a car insurance plan. She selects a plan and manages to save around 20% as compared to the plans offered by the agent.
As we have already discussed the importance of online premium calculators, here are a few reasons, which make it beneficial as well.
Every Car insurance company has its own set of rules for calculating the premium of car insurance. However, the factors that are considered by most insurers are listed below:
Below is the list of details you need to provide while calculating the premium for insuring a new car:
To calculate the premium for used cars, you need to provide the following details:
Premium with effect from 16th June 2019 (Rs.)
Not exceeding 1000 cc
Exceeding 1000 cc but not exceeding 1500 cc
Exceeding 1500 cc
**Last Updated on 13-11-2020
Own Damage Premium – (No claim bonus + discounts) + Liability Premium
For a better explanation of the topic, let's take a look at the table below.
Manufacturing year (2018)
Car Insurance with NCB
Insured Declared Value
Own Damage Premium
No Claim Bonus Discount
Total Own Damage Premium
Personal Accident Cover
Legal Liability Paid to the driver
Compulsory Third Party Cover
**Last Updated on 13-11-2020
Many factors affect car insurance premiums. Some of the notable ones are mentioned below for your reference.
Everyone knows the importance of having comprehensive car insurance. But due to budget issues, people stick to the basic third-party liability coverage, which doesn't offer complete protection at the time of need.
With the help of our experts, we at PolicyX.com, have penned down a few points that can help you in reducing the premium amount of your car insurance policy, so that you can invest in a better policy. Let's check them out.
Generally, car insurance policies come with a 1-year tenure. As you close in on the expiry date, you have to renew the policy by paying the premium. This is an on-going process and can be done online from the comfort of your home.
General things that you should keep in mind-
Before zeroing in on a car insurance plan, compare and calculate different policies with their premium rates
Here is a schedule of depreciation % for calculating car's IDV:
Age of vehicle
Not exceeding 6 months
6 months to 1 year
1 year to 2 years
2 years to 3 years
3 years to 4 years
4 years to 5 years
No insurance company offers the provision to pay the premium of car insurance in instalments.
There are three key components of a comprehensive car insurance premium:
Last updated on 13-11-2020