How to Calculate Car Insurance Premium Online (2024)

Premium = Own Damage Premium - (No claim bonus + discounts) + Liability Premium as Fixed by the IRDAI + Cost of Add-ons

How to Use Car Insurance Calculator Online?

A car insurance calculator, apart from enabling you to calculate the premium online, also helps you compare policies between different car insurance providers. This caters to the varying needs of customers, as it helps them evaluate the options available in the market and narrow down on a plan that suits their needs. You can also buy a car insurance policy online in a few simple steps following policy comparison.

Here are the steps to use the car insurance premium calculator:

Step 1: Choose the make, model, fuel type, and variant of your car.

Step 2: From the provided list, choose the RTO for your car.

Step 3: Choose the year in which you bought your car.

Step 4: In case you previously filed a claim, click ‘Yes;’ otherwise, click ‘No.’

Step 5: Click on the 'Calculate' button.

Step 6: Your car's insured declared value and estimated premium will be displayed on the screen.

Car Insurance Premium Calculation for Used Cars:

Every car insurance company uses its own set of parameters to calculate the premium for a policy. However, the factors that are considered by most insurers are listed below: The online car insurance calculator tool helps you in procuring the most appropriate auto insurance policy for your vehicle in a transparent and convenient manner. To calculate the premium for used cars, you will have to provide the following details:

1. Type of car
2. Fuel type
3. Details of the existing car insurance policy
4. Registration number of the car
5. Details regarding change in ownership
6. Claims for previous years, if applicable

The used car insurance calculator tool will show you the premium required to insure the vehicle in a matter of seconds.

Car Insurance Premium Calculation for New Cars:

The new car insurance calculator tool provides a listing of top insurers and their car insurance products in a few simple steps. This offers a new car owner the much needed guidance in narrowing down on an appropriate auto insurance policy for his/her prized set of wheels. The details you would have to provide to calculate the premium for insuring a new car are:

1. The name of the car manufacturer
2. The model of the vehicle
3. Year of manufacture
4. Personal details of the owner-driver
5. State of registration of the vehicle

Premium Rates for Third-Party Car Insurance:

The premium rates for third-party car insurance are listed in the table below:

Comprehensive Car Insurance Premium Calculator:

A comprehensive car insurance policy provides total coverage for your car. It covers everything from your own damages to third-party losses and comes with a variety of add-on covers. You can experiment with different add-ons to see how they affect your car insurance premium using a comprehensive car insurance premium calculator. This online tool will make your decision much easier and clearer.

How to Reduce Car Insurance Premium?

1. No Claim Bonus is an easy way to progressively reduce your premium. For example, consider the following scenario where because of NCB, the premium is being lowered gradually.

1. Another way through which you can reduce premium is to become a member of the Automobile Association of India (AAI) and by installing anti-theft and locking devices in your car.
2. Also, you have to ensure that the IDV of your vehicle is judged correctly before the policy is issued. This will not only ensure that you are being charged the right premium but will also guarantee a hassle-free claim process.
3. Select your vehicle carefully based on your need. Don't buy an SUV if you are commuting less than 50kms a month. Remember, the showroom price and CC of your car also add to the premium amount.
4. Drop any unnecessary add-on covers which will otherwise increase your premium costs.
5. As mentioned above, opting for voluntary deductibles at the time of buying auto insurance is a great way to reduce the premium you pay towards it. If you are a confident driver, you can go ahead with a high voluntary deductible amount. This will bring down the premium by a considerable amount. However, ensure that you will be able to pay the voluntary deductible amount in the unlikely (but possible) situation of a car accident.

Factors Affecting Car Insurance Premium:

The premium of car insurance depends on the following factors:

1. IDV/Insured Declared Value of the vehicle
2. Type and age of the vehicle
3. Cubic capacity of the engine
4. Geographical zone
5. Age and gender of the owner-driver
6. Fuel type
7. Profession of the owner
8. Voluntary deductible
9. No Claim Bonus (NCB)
10. Anti-theft device installation
11. Credit Score
12. Driving history of the owner
13. Location
14. Insurance history
15. Annual Mileage
16. Marital history
17. Claim history
18. Coverage level
19. Vehicle ownership status

Benefits of Car Insurance Premium Calculator:

1. The car insurance premium calculator is easy to use and yields results in a few minutes.
2. You can use it at the convenience of your home and benefit from a hassle-free and paperless policy purchase experience.
3. One of the major advantages of a car insurance calculator tool is that you would not be influenced by insurance agents who, after all, are working towards attaining their sales targets.
4. On the calculator tool, you can change the variables of coverage 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.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017