After buying a car, the next most important thing to do is to get a car insurance for the same. Before finalising a car insurance plan, get an idea about the cost of the insurance in the form of the premium to be paid. Compare different plans in terms of coverage and premium to get a comprehensive package. An easy and effective method of calculating the premium is using a car insurance premium calculator.
What is Car Insurance Premium Calculator?
A car insurance premium calculator is an online tool that helps calculate an estimated premium amount for the insurance on the basis of certain details and factors. The estimate helps ascertain the affordability of the plan. It helps figure out the premium amount for different car insurance policies offered by different providers.
Details Required for Using Car Insurance Premium Calculator
In order to get the premium estimate for your car using the calculator, you need to enter certain details. These are:
- Registration number of the car
- Model and type of the car
- Manufacture year of the car
- Sum insured
- Area of registration
- Details of previous policy (in case of an old car)
- Details of previous claims made
Note: This is a general list, thus, factors might vary from provider to provider.
Factors Affecting Premium Calculation for Car Insurance
There are certain factors that affect the premium calculation for a car insurance. These are:
- Insured Declared Value (IDV): IDV is the market price of the car less depreciation. This is basically the amount (sum assured) the insurance company shall pay you in case of total damage of the car or theft. IDV of a brand new car will be higher compared to that of an old car (say, 1-2-year-old). Thus, the premium will also be higher.
- Cubic capacity: By cubic capacity or cubic centimetre capacity, we mean the size of the engine which is responsible for the power of the engine. A car of 1000 cc will have a comparatively lower premium than the one with of 1500 cc.
- Age of the car: An old car will have lower premium because of its lower market value.
Note: This factor does not affect the premium if you are opting only for third-party liability cover.
- Geographical location: The state and city of the registration of the car also plays an important role in determining the premium amount to be paid towards the insurance policy. A car registered in a metropolitan city like New Delhi or Mumbai draws a higher premium than a car registered in Jodhpur or Guwahati.
- No claim bonus (NCB): This factor is considered in case of renewal or transfer of a policy. If you have not made any claims in the previous policy period, you will be rewarded with discount on premium.
How to Use Car Insurance Premium Calculator?
By following these steps, you will know the premium of the insurance policy you wish to buy for your car.
Using car insurance premium calculator by a provider
- Visit the official website of the insurance provider
- Search for premium calculator which will be visible on the home page itself
- If not, go to the plan you wish to opt for
- Go for either ‘Get Quote’ or ‘Buy Online’, whichever option is available
- Enter all the details like the registration number of the car, place of registration, model of the car, engine capacity of the car, and so on
- You will find a button saying ‘Get Quote’ , ‘Calculate Premium’ or ‘Submit’
- Click on it
At this stage, your premium will be calculated and a value will flash which will not have any add-on cover. If you wish to add the same, you can do so here and then compare the difference in the two premium amounts.
Using a car insurance premium calculator by online aggregators
- Go to website of an online aggregator
- Search for calculator and click on the same
- Enter basic details like your car’s model type, brand, registration no., etc.
- Submit these details
Check for the premium results. If it suits your budget, go for it, else check other providers.
Car Insurance Calculation
Below are premium values calculated for car insurance plans provided by different insurance companies:
Coverage: 1 year Own Damage + 3 years Third-Party
| Insured Declared Value | Annual Premium | |
| Rs. 5,20,650 | With Zero-Depreciation Cover | Without Zero-Depreciation Cover |
| Rs. 15,516 | Rs. 17,700 | |
| Rs. 4,00,672 | With Zero-Depreciation Cover | Without Zero-Depreciation Cover |
| Rs. 14,796 | Rs. 16,111 | |
| Rs. 7,57,505 | With Zero-Depreciation Cover | Without Zero-Depreciation Cover |
| Rs. 21,972 | Rs. 25,381 | |
Note: Above values are for new cars.
How to Calculate Premium for Old Cars?
The premium for old cars is usually lower compared to that for a new car. Reason: New cars mean high IDV which in turn means high premium. The reason works exactly the same way for old cars. And when we talk of old cars, we mean premium at the time of renewal or for transfer of the policy or when someone has bought a second-hand vehicle. In all such cases, premium will be lower.
In such old cars, along with all the other details, you also need to give details of the previous policy along with last years’ claim history and previous owner’s details (if applicable). Apart from this, the process remains the same like that of a new car insurance premium calculation.
Important Aspects
When using a car insurance premium calculator, keep certain things in mind so as to get the closest estimation of the premium with least errors. These are:
- Go through all the important factors that may affect the premium valuation of the insurance
- Do not enter faulty information as this may change the premium value
- Avoid making petty claims as this will activate the No Claim Bonus and your premium at the time of renewal will surely go down
Advantages of Car Insurance Premium Calculator
There are various advantages of using a car insurance premium calculator. Let us look at some of them:
- This is a time saving tool as you don’t have to specifically go to the agent or the insurance provider physically to get an estimation
- It is a user-friendly tool which means it is easy to use it
- Ideal for generating different quotes and comparing different policies
FAQs
Q1. Will the premium for a third party liability cover change as my car ages?
No. for third party liability cover, cubic capacity of the engine is considered and not the age of the vehicle. So it won’t change.
Q2. Do I get a discount on car insurance premium if I’m a member of Automobile Association of India (AAI)?
Yes. Insurance companies provide discounts on premium rates for policyholders who are members of the AAI.
Q3. Do vintage cars fetch a higher premium value?
No, it’s actually the exact opposite of this. Registered vintage cars have a lower premium amount.
Q4. Will a package policy provide coverage to passengers of the car?
No. Personal accident cover is provided to the owner-driver of the car only in a package policy. To avail it for passengers too, you need to buy it as an add-on cover.