What is Car Insurance Premium Calculator?
A car insurance premium calculator is an online tool that helps you calculate the estimated car insurance premium amount. Apart from that, the tool also allows you to customise the IDV (Insured Declared Value) as per your preference. To calculate the premium, all you need to do is enter a few basic details in the tool like car make/model, vehicle’s age, fuel type, RTO location, etc.
How Is Car Insurance Premium Calculated?
To understand how car insurance premium is calculated, you can refer to this simple formula.
Car Insurance Premium = Own Damage Premium – (NCB + Discounts) + Third-party Liability Premium
Note that the Third-party Liability premium is fixed by IRDAI (Insurance Regulatory and Development Authority of India.
Benefits of Car Insurance Calculator
An online car insurance calculator helps you determine the car insurance quote instantly, irrespective of the insurance plan you wish to buy. Here are the major advantages of an online car insurance calculator.
Estimation of Premium
A car insurance calculator makes premium calculation simple and provides an accurate estimation of premium amount based on the vehicle details and the selected coverage.
New and Old Car Insurance
The vehicle insurance calculator works for both new and old cars. That means you can get insurance quotes, irrespective of the age of the vehicle.
Choose the Right Add-Ons
The motor insurance calculator helps you compare the premium amount based on the insurance plan and the add-ons you choose. It helps you choose the add-ons that suit your requirement.
Make an Informed Choice
The car insurance premium calculator gives you an accurate picture of the premium based on variables like coverage and add-ons. It helps you make an informed decision.
Factors Affecting Car Insurance Premium
The car insurance premium is calculated after determining several factors that are listed below. ACKO uses a combination of these factors and its proprietary algorithms to tailor the best insurance rates for your car.
Car Make and Model
Every car has a different cost of repair and cost of spare parts. Since car insurance covers the cost of damages, theft, etc., the insurance premium differs from one car to another. In simple words, the higher the cost of the car, the higher the premium.
Policy Coverage
Another crucial factor that dictates the insurance premium is the policy coverage. The premium depends on what type of plan you choose. There are mainly three plans you can choose from: Third-party, Own Damage and Comprehensive, and the premium differs for each plan.
No Claim Bonus (NCB)
NCB is a discount for not filing a claim in the previous policy year. NCB is retained even if you switch insurance companies. NCB discount increases for every consecutive claim-free year and goes as high as 50% discount on the premium.
Insured Declared Value (IDV)
IDV is the approximate market value of your car. With a comprehensive policy, the insurance company will pay the IDV amount in the event of total damage or theft. Higher IDV leads to higher premiums.
Add-Ons
The car insurance premium also depends on the add-ons you choose, along with the base policy. You can select additional benefits for your policy, like Zero Depreciation, Engine Protect, Roadside Assistance and more. However, they come at an extra cost, which increases the car insurance premium.
Discounts
Insurance providers offer many types of discounts for good behaviour like driving safely, renewing policy ahead of expiry and much more. You can use them to enhance your coverage or save on your premiums.
Compulsory Personal Accident (PA) Cover
As per law, buying a Personal Accident cover is mandatory if you drive a car in India. It offers you coverage of up to Rs. 15 lakhs against accidental injuries or death. Buying this cover will increase the car insurance premium.
Goods and Service Tax (GST)
Once you have customised and finalised the car insurance plan you wish to buy, 18% GST will be applied to the final premium amount. It is applicable to car insurance plans of all general insurance companies in India.
Tips to Reduce Car Insurance Premium
Here are a few tips that can help you reduce your car insurance premium.
Do Not Raise Small Claims
If you can afford to pay for minor damages yourself, you will save money on your car insurance premium by not filing a claim.
Transfer Your No-Claim Bonus (NCB)
If you have a good NCB, you can transfer it to your new car when you buy it. It will give you a discount on your new car insurance premium.
Renew Your Policy on Time
If you renew your policy late, you may lose the NCB and may have to pay a higher premium for your next policy.
Install an Anti-Theft Device
Many insurers offer a discount on your car insurance premium if you install an anti-theft device in your car.
Avoid Modifying Your Car
Modifying your car can increase the value of your car, but it can also increase your car insurance premium.
Buy Car Insurance Online
Buying your car insurance online can save you money. You can compare quotes from different insurers and find the best deal.
Third-Party Liability Premium Rates (1-Year Policy)
The following table provides more details on the third-party liability premium rates for a 1-year policy.
| CATEGORY | CUBIC CAPACITY (CC) | INSURANCE PREMIUM |
|---|---|---|
| Private Cars | Not more than 1,000cc | Rs. 2,094 |
| Private Cars | Between 1,000cc and 1,500cc | Rs. 3,416 |
| Private Cars | More than 1,500cc | Rs. 7,897 |
| Private Electric Cars | Not more than 30 KW | Rs. 1,780 |
| Private Electric Cars | Between 30 KW and 65 KW | Rs. 2,904 |
| Private Electric Cars | More than 65 KW | Rs. 6,712 |
| Vintage Cars | 50% Discount on certified Vintage Cars by Vintage & Classic Car Club of India | 50% Discount |
Long-Term Third-Party Liability Premium Rates (3-Year Policy)
The following table provides more details on the third-party liability premium rates for a 3-year policy.
| CATEGORY | CUBIC CAPACITY (CC) | INSURANCE PREMIUM |
|---|---|---|
| Private Cars | Not more than 1,000cc | Rs. 6,521 |
| Private Cars | Between 1,000cc and 1,500cc | Rs. 10,640 |
| Private Cars | More than 1,500cc | Rs. 24,596 |
| Private Electric Cars | Not more than 30 KW | Rs. 5,543 |
| Private Electric Cars | Between 30 KW and 65 KW | Rs. 9,044 |
| Private Electric Cars | More than 65 KW | Rs. 20,907 |
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