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Car Insurance Premium Calculator

Car Insurance Premium Calculator is basically a tool that helps you in getting an estimate about the payable premium amount in advance so that you can plan further accordingly. It will not help you with an estimate of the premium amount in advance but also assist you inc choosing the best one according to your needs and budget. It will make sure that you are not spending extra amount on unnecessary things and features. It will help a person in calculating the premium amount in advance and assist further in generating free quotes for car insurance plans from various insurers based on the information provided.

Earlier, what people do, they rely on the conventional method where people had to meet agents from various companies or insurers and then compare and select the best policy for them. For premium amount as well, they rely on agents and get ready to pay whatever the agents told them, In such a scenario, they are wasting a lot of their money that they can use further for other things. But now with the advancement in the technology and everything being online, this tedious job has been eased off.

Now all one has to do is just log in to an insurance calculator website and enter the required details related to the car and get an estimate of the payable premium amount in advance. With the same, you can compare all insurance plans from top car insurance companies of the company.

Calculator not only helps in getting the best policy for your vehicle but also saves you from paying huge and unnecessary commission to the agents. It also saves your time and energy. In order to find out a good policy it helps one compare the premium rates of different companies and find out the most favorable one, the bigger is the coverage, higher are the benefits availed.

How to use the Online Calculator?

Using an online car insurance premium calculator is very easy. You can do it with the help of your computer / laptop / phone from the comfort of your home. All you require is a stable internet connection. There are many online portals that allow you to use their calculator for free. You just have to visit there, put some basic details about the vehicle and your personal too and then you will get the required details in a few seconds.

In case you want to purchase any plan then you can visit the online free quotes sections which will offer car insurance quotes for free from top insurance companies of India. From there you can compare plans easily and can buy the best one according to their needs. Online Calculators can be easily found on any Insurance website or online policy aggregators.

Benefits Of Online Car Insurance Calculator

People might think of why they need to use an online insurance calculator when you can speak to agents directly. Well, in such cases it's important for you to understand that agents do charge their commission and that might increase your premium amount. So by choosing online, you can save that money. Moreover, car Insurance premium calculators help us in making more informed decisions. There are many other advantages as follows.

  • It assists people in taking the decision about choosing the right insurance plan as per requirements
  • One should become well-informed about the market and the players
  • A lot of time is saved while doing the manual calculations
  • One is already prepared with the required documents
  • An easy and trustworthy process to compare and avail the best option
  • The procedure becomes fair and bias-free as one is not affected by the decisions of a broker or agent and can make their own choice
  • A car insurance calculator not only helps you in comparing different policies but also enlightens you with various other parameters that affect the price of a policy
  • The car insurance premium calculator is very easy to use that provide results in a few minutes
  • You can use it from wherever you want, even from the convenience of your home and benefit from a trouble-free and paperless policy experience
  • One of the biggest benefits of a car insurance calculator tool is that you would not be influenced by insurance agents
  • On the calculator tool, you can change the variables of insurance policies and see how the premium changes accordingly. The tool is a great medium to educate yourself on the nuances of a plan and hence, helps you in making the best decision at the time of buying a policy

Factors Affecting Car Insurance Premium

There are many factors that affect car insurance premium and plays a vital role at the time of its calculations as well. Companies do carry certain criteria for calculating the premium.

Insured Declared Value (IDV): It refers to be the most important factors that can easily affect the car insurance premium. Insured declared value is basically the amount of sum insured which is promised by the insurance company. It is the current value of the car according to the market. The IDV value of the car is calculated with the help of two factors, first, the manufacturer’s present value and second is the depreciation on the basis of the vehicle’s age. Thus, the greater the IDV higher is the premium and lower the IDV lower is the premium and coverage received is also low. Your IDV decreases as the car grows older. In the case of old vehicles, it is calculated by the mutual agreement of the insurer and the insured. Here, IDV is decided by the assessment of a vehicle’s condition which is carried out by the dealer.

The vehicle: The vehicle one drives is a major factor affecting the premium value. Some of these are the model of the car, luxurious the car more would be the premium. Car modifications, prior to any modifications or changes make sure that there is an add-on policy, to assure that the transformations will be covered. Car’s fuel type and mileage also affect the premium.

Cubic capacity: Cubic capacity is a term in which the total power produced by your car engine is measured. As the third party premium is fixed by IRDA it also takes into consideration the engine capacity of the car. The size of the engine also influences the third party insurance cover.

No Claim Bonus: One receives this as a reward for driving carefully on the roads. If you have the benefit of no claim bonus in your plan, then you can save up to 50% on their own damage premium.

Voluntary Deductible amount is the discount which reduces your premium by the amount ranging between Rs.1500-Rs.15000, as this won’t be returned by the insurer.

Automobile Memberships: If you have a membership of a registered automobile company like Automobile Association of India, you can avail the advantage of a reduced premium. Like if we take a vehicle from Hyundai than we may get some discount on the policy as recommended by them.

Anti-Theft devices discount: You can also go for anti-theft devices like those approved by the Automotive Research Association of India, you can get a 2.5% discount on your premium.

Read more about :- How to Buy Cheapest Car Insurance Plan Online?

Location and demographics: The area you are living in also affect the amount of premium. Tier-1 cities like Delhi, Mumbai will have a higher premium in comparison to Tier-11 cities like Ranchi, Amritsar. The premium is affected by the increase in traffic. Areas which are prone to damage will also have a higher premium.

Demographics like age, marital status, and gender also affect premium like old drivers are more prone to accidents because of poor eyesight and slow motor skills. Research has also shown that people who are married tend to have less accident in comparison to single people. Men also get lower premium after marriage. Also, boys are more prone to an accident in comparison to girls

Add-On 's: Add-on can further affect the amount of premium. Some of them are as follows.

  • In case of Luxurious cars add-on may vary; it can be related to additional engine cover and electronic circuit protector and likewise. Other add-ons can be generic as mentioned below
  • Depreciation Cover
  • Road Assistance Cover
  • Engine Protection Cover

While the premiums are fixed by IRDA, the insurers have the opportunity to charge the premium for the insurance policy as per the above parameters.

Premium Calculation Differs With Types Of Car Insurance Policy

We can have the following types of Insurance Policies

  • Third party insurance Coverage - Here only third-party liability is covered during accidents. Claim rate may vary as per the depreciation value of the vehicle
  • Third Party theft & Insurance Policy - It covers all the expenses of the third party during the accident; the claim rate again may differ based on the car model and make. Any kind of theft of our vehicle is also included as per this policy
  • Comprehensive insurance - This policy covers everything, the insured, vehicle and third party liability

How To Select Insurance Company After Premium Calculation?

As per the Motor Vehicle Act of 1988, it's mandatory to have car Insurance. However, we must check a few things before selecting the right car Insurance policy for ourselves. While selecting the car Insurance policy a few essential factors that we should keep in mind are.

1. How old is the Insurance Company?

The year of establishment determines the sustainability of the firm. Older the firm better is the credibility of the company.

2. What all claims they have resolved in the previous years?

The number of claims these car Insurance policies has made also helps in understanding their capability of managing claims.

3. What best add-ons they can provide?

There are lots of add-ons that these Insurance companies are providing. We must check the same based on our needs and requirements. A major factor, in this case, is the kind of vehicle that we have. In case of luxurious cars, our add - on requirement may be completely different as compared to the hatchback and likewise.

4. What kind of vehicles they are currently covering?

Our Car Insurance policy payment is largely affected by the kind of car that we may have. In case of hatchbacks amount of premium that needs to be paid maybe less. It may vary based on the kind of car that we have. It's important to check from these Insurance companies after the kind of coverage they have for all these vehicles make & Model. As claim differs if the car is less than 1500 cc or above that.

5. How were their services in the previous years?

In case we are already continuing our policy with some service provider then we should renew based on our experience with them in the previous year. If we plan to take policy from a new service provider than its good to check their credentials based on the current number of vehicles they are covering and claims they have settled.

6. What is the premium amount that we need to pay?

Amount of premium that we need to pay is also an important reason in deciding about the policy that we wish to have. This may not be the only reason but definitely one of the important factors for sure. Premium amount will vary at the time of renewal. If we have NCB than it will be further reduced.

7. Garage facility they are providing for cashless cover.

Garage facilities help in taking cashless facility at the time of any accident or damage. Based on that some of the leading players in this sector are listed below.

All these car Insurance companies additionally provide lots of add-ons as well. While taking Insurance from them we can always check about the same online or through the concerned person.

How To Buy Car Insurance Policy After Using Premium Calculator?

Whether we have an old car or new we can easily take a car Insurance policy in the following ways

  • Buying Online - Buying Car Insurance policy online may be the fastest way of buying car Insurance. We can buy from the policy that we choose to have.
  • Checking through Policy Aggregators - Policy aggregators are a good way to check different policies available online. There's an additional facility of calculating the premium as well through online calculators. We should check all the available policies and select the one that is most suitable.
  • Calling the agents - Though it's quite an outdated process at the time it may be comfortable to call the agent. This may be in the situation when we know the agent from quite some time.

How Can Number Of Claims Affect Premium Calculations?

Making small claims makes us penny wise but pound foolish. A car Insurance Policyholder we may be lured to take claims every year. But it may not be the right decision as it may turn out to be a loss at the time of renewal. As one of the Important ingredients in Car Insurance premium is NCB (No claim bonus). However, it is only provided if we haven't taken any claim in the previous years. Its percentage keeps on adding every year of no claim.

Car Premium is calculated based on IDV(Insurance Deferred value). Along with that, there are many other factors like the claim that we take in a year. Based on that our premium amount may get increased at the time of renewal. So it will be useless to take claims especially if it is of a small amount of less than Rs.15000.Because claim that we get on this amount will be based on the following factors.

Variable deductions - Some expenses like Plastic paint etc may not be included in Insurance. So that amount can be claimed at the time of Insurance. In a claim of Rs.10000, it may vary from Rs.1500 to Rs. 2000. It may change based on the type of car that we may have.

Depreciation Value - Amount of claim may be further reduced based on the depreciation value. It can be further reduced to Rs. 2000.

Comprehensive Policy deduction - In case of comprehensive policies i.e when we have third-party insurance claim than further claim value is reduced. It completely varies based on the depreciation value of the vehicle.

So in case if we have a small claim of Rs.10;000 then after all deductions we may just get Rs. 4000. This actually may be a loss as we may be entitled to get NCB of about Rs.5000 on the renewal. So we should do all these calculations. Unless we get good benefits out of our claims we should not avail it. As it will also affect our claim history to a great extent.

Calculation of Non-Claim Bonus(NCB)

Non-Claim Bonus is given at the time of renewal for no claim year. It is a kind of reward that is given for not taking any claim. It gets accumulated every year based on claims.It is a kind of discount that is given on our premium.

Based on the same there's slab below.

No. of years NCB Discount
1 20%
2 25%
3 35%
4 45%
5 50%

This table is applicable only if we don't take any claim. If we take the claim from 3rd year than NCB will reduce for next year.

Do’s And Don’t While Calculating Our Car Insurance Premium

Sno. Do’s Don’t
1 Claims should be made only if expenses are more than 20000 as it will affect our NCB. While calculating premium for old car it’s important to keep track of the same. To have better premium rate we should avoid making small claims. As it will affect our NCB value.
2 We should make the renewal on time to avail maximum benefit.Continuous payment of premium can get the best price at the time of calculation. Gap in premium renewal should be avoided as it will affect the calculation.
3 We should try to take insurance from the same service provider. Unless there is a change in vehicle or some better offerings from others.There may be chances of getting additional discount after calculation. We shouldn't switch car Insurance provider frequently as it may lead to higher premium value. As a result it may also result in higher premium payment even after the calculation
4 We should take the insurance premium as per our car model & type. For Hatchback, some Insurance company may be better, but for a sedan, there may be another.For Luxurious cars, our requirements may vary completely. Our premium calculation will also differ accordingly. We should not blindly take Insurance from any service provider randomly. We must do due diligence before taking the decision. Online calculator can be a great help in the same.
5 Car Insurance policy should be chosen based on add-ons that we may need. Based on that Policy premium will increase as well. Add-on that we choose should be relevant. In case of new cars, depreciation cover may not be of much use. At the same time if we have small hatchback than electronic circuit protects may not be of much use. All these will make a difference in the calculations.

How Companies Calculate Premium For New & Old Cars?

Each and every car insurance company has its own rules to calculate the premium of a car insurance policy. However, the factors that are considered by most insurers are listed below:

Premium calculator for new cars - With a listing of top insurance companies and their car insurance products in a few simple steps. This offers a new car owner the required guidance in narrowing down on a suitable auto insurance policy for his/her prized set of wheels. The facts you would have to provide to calculate the premium for insuring a new car are:

  • The name of the car manufacturer
  • The model of the vehicle
  • Year of manufacture
  • Personal details of the owner-driver
  • State of registration of the vehicle

Premium calculator for Old cars – Old cars are the ones for which we are already paying the premium or second-hand cars. The online car insurance calculator tool assists people in procuring the most accurate auto insurance policy for your vehicle in the best way that is transparent and simple. To calculate the premium for used cars, you will have to provide the following details:

  • Type of car
  • Fuel type
  • Details of the existing car insurance policy
  • Registration number of the car
  • Details regarding the change in ownership in case of second-hand cars
  • Claims for previous years, if applicable

The used car insurance calculator tool will show you the required premium to insure your vehicle.

Why Online Car Insurance Premium Calculator Is a Necessity?

As per the Motor Vehicle Act of 1988, it's mandatory to have car Insurance in India. We need to have Car Insurance also because of the following reason.

  • To prevent theft
  • To manage damage at the time of an accident
  • To follow the traffic rules; because of no claim bonus facility, people try to drive as carefully as possible.

Thus it helps in increasing civic sense in the people

An Online Calculator can further assist in taking the best policy because of the following key reasons.

  • To have a more informed choice
  • To get the best facilities at the lowest price
  • Take Car Insurance as per our Vehicle
  • Save time as it gives us instant results