Car insurance Premium calculator is tool which helps you select the right car insurance policy for yourself, based on your needs and requirements. It basically helps an individual to calculate the premium of a car and also generate different quotes for car insurance plans from various insurers based on the information provided.
Earlier, the conventional method was used where people had to meet agents from various companies or insurers and then compare and select the best policy for them. 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 logon to an insurance calculator website and enter the required details related to the car and get the best policies based on your information.
Given below are a few details required to calculate car insurance premium:
|Sno.||Details in case of New Cars||Details for old or second hand cars|
|1||Car details and the name of manufacturer of the car||Previous Policy details or owners details incase of second hand cars|
|2||Date of registration and the state of registration||Claim history of previous year|
|3||Car make and model||Car type and fuel type|
|4||Type of car||Depreciation Value|
|5||Year of manufacture||-|
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 favourable one, the bigger is the coverage, higher are the benefits availed.How to use Online Calculator?
Using online calculator is quiet simple. We just need to input our car details as required and we get the details.Online Calculators can be easily found on any Insurance website or online policy aggregators.
Car Insurance premium calculators helps us in making more informed decisions. There are many other advantages as follows.
Insured Declared Value (IDV) : It is one the most important factors which affects the premium on the car. Insured declared value is the amount of sum insured which is promised by the insurance company. Basically, it is the current value of 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, 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 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 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 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 affects 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 in consideration the engine capacity of the car. The size of the engine also influences the third party insurance cover.
Below table as per year 2017-2018 will give us better idea of premium rates.
|Engine Capacity||Premium(in Rs.)|
|Less than 1000 cc||2055|
|Between1000 CC and 1500 CC||2863|
|Greater than 1500 cc||7890|
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 the 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 reduced premium.Like if we take vehicle from Hundai 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 Automative Research Association of India, you can get 2.5% discount on your premium.
Location and demographic : The area you are living in also affects the amount of premium. Tier-1 cities like Delhi, Mumbai will have 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 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 accident in comparison to girls
Add-On’s : Add-on can further affect the amount of premium. Some of them are as follows.
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.
We can have following type of Insurance Polcies.
As per Motor Vehicle Act of 1988, it's mandatory to have car Insurance. However, we must check few things before selecting right car Insurance policy for ourselves. While selecting the car Insurance policy 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 resloved 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 vechiles 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 may be less. It may vary based on 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 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 the 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 factor 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 leading players in this sector are listed below.Some of the top players in Car Insurance sectors are tabulated below.
|Sno.||Name of Car Insurance Company||Garage Cover|
|1||Tata AIG Car Insurance||3800+|
|2||Royal Sundaram Car Insurance||3300+|
|3||Bajaj Allianz Car Insurance||4000+|
|4||Bharat Axa Car Insurance||2500+|
|5||Reliance Car Insurance||3800+|
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.
Whether we have an old car or new we can easily take car Insurance policy in following ways.
Making small claims makes us pennywise but pound foolish.A car Insurance Policyholder we may be lured to take claims every year. But it may not be a 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 following factors.
1.) Variable deductions – Some expenses like Plastic paint etc may not be included in Insurance. So that amount can’s be claimed at 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.
2.)Depreciation Value - Amount of claim may be further reduced based on the depreciation value. It can be further reduced to Rs. 2000.
3.) 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 great extent.
1.) We can take maximum 2 claims in year irrespective of the amount in most of the policies
2.) NCB(No Claim Bonus) is given at the time of renewal only if we haven't taken any claims
3.) Depreciation value is deducted at the time of claims
4.) There are variable deductions at the time of claim
5.) In case of comprehensive policy coverage, there's further depreciation deduction
Non Claim Bonus is given at 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 of our claims .It is kind of dicount that is given on our premium
Based on the same there’s slab below.
|No. of years||NCB Discount|
This table is applicable only if we dont take any claim. If we take claim from 3rd year than NCB will reduce for next year.
|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.|
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:
Premium calculator for Old cars – Old cars are the one’s for which we are already paying the premium or second hand cars.The online car insurance calculator tool assist 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:
The used car insurance calculator tool will show you the required premium to insure your vehicle.
As per Motor Vehicle Act of 1988, it's mandatory to have car Insurance in India. We need to have Car Insurance also becasue of follwing reason.
An Online Calculator can further assist in taking the best policy because of following key reasons.