Car insurance is mandatory in India under the Motor Vehicles Act. Our comprehensive car insurance calculator helps you estimate premium costs based on vehicle details, IDV calculation, NCB benefits, add-on covers, and risk factors. With rising vehicle costs and repair expenses, having adequate car insurance coverage is essential for financial protection against accidents, theft, and third-party liabilities.
Key Features of Our Car Insurance Calculator
- IDV Calculation: Automatic calculation of Insured Declared Value based on vehicle age and depreciation
- NCB Benefits: Apply No Claim Bonus discount from 20% to 50% for claim-free years
- Policy Types: Compare comprehensive, third-party, and own damage policies
- Add-on Covers: Include zero depreciation, engine protection, return to invoice, roadside assistance
- Risk Assessment: Evaluate premium based on driver age, mileage, parking, and claim history
- Voluntary Deductible: Reduce premium by opting for higher deductible amounts
- Multi-year Policies: Calculate savings for 2-year and 3-year policy tenures
- Multi-Currency Support: Calculate in INR, USD, EUR, GBP, and more
How to Calculate Car Insurance Premium
Step 1: Enter Vehicle Details
Provide vehicle type, make, model, manufacturing year, current value, engine capacity, fuel type, and seating capacity.
Step 2: Add Registration & Location
Enter registration city, city zone (metro/tier-1/tier-2/tier-3), and registration type (individual/company).
Step 3: Select Policy Details
Choose policy type (comprehensive/third-party/own damage), NCB percentage, claim history, and policy tenure.
Step 4: Enter Driver Information
Provide driver age, driving experience, license type, and number of drivers for accurate risk assessment.
Step 5: Add Usage & Risk Factors
Include annual mileage, usage type, parking type, anti-theft device, and voluntary deductible preferences.
Step 6: Select Add-on Covers
Choose from zero depreciation, engine protection, return to invoice, roadside assistance, consumables, key replacement, NCB protection, and passenger cover.
Step 7: Get Instant Results
Receive IDV value, premium breakdown, total cost with GST, coverage score, risk level, and personalized recommendations.
Understanding IDV (Insured Declared Value)
IDV is the current market value of your vehicle and the maximum amount insurer will pay in case of total loss or theft. It's calculated by reducing depreciation from vehicle's ex-showroom price.
Depreciation Rates by Vehicle Age:
- • Less than 6 months: 5%
- • 6 months - 1 year: 15%
- • 1-2 years: 20%
- • 2-3 years: 30%
- • 3-4 years: 40%
- • 4-5 years: 50%
- • 5+ years: Mutual agreement
- • 10+ years: 40-60% of value
Note: Higher IDV means higher premium but better claim settlement. Lower IDV reduces premium but may not cover full vehicle value.
No Claim Bonus (NCB) Benefits & Discount Structure
NCB is a reward for claim-free years, offering discount on own damage premium. It's transferable to new vehicle and between insurers.
NCB Discount Rates:
- • 1st claim-free year: 20% discount
- • 2nd claim-free year: 25% discount
- • 3rd claim-free year: 35% discount
- • 4th claim-free year: 45% discount
- • 5+ claim-free years: 50% discount
NCB Protection Add-on:
Protects your NCB even after making one claim. Costs 10-15% extra premium.
- ✓ Make 1 claim without losing NCB
- ✓ Maintain discount percentage
- ✓ Beneficial for high NCB holders
- ✓ Saves money in long run
Types of Car Insurance Policies
🛡️ Comprehensive Insurance
Complete protection covering both own damage and third-party liability.
- Own vehicle damage
- Third-party liability
- Theft coverage
- Natural calamities
- Fire damage
- Personal accident
Best for: All vehicle owners seeking complete protection
⚖️ Third-Party Insurance
Mandatory by law, covers only third-party damages and liabilities.
- Third-party injury/death
- Third-party property damage
- Legal liability coverage
- No own damage cover
- Lower premium
- Mandatory by law
Best for: Old vehicles with low market value
🚗 Own Damage Only
Covers only your vehicle damage, excludes third-party liability.
- Own vehicle damage
- Theft coverage
- Natural calamities
- Fire damage
- No third-party cover
- Requires separate TP policy
Best for: When you have long-term TP policy
Essential Add-on Covers for Car Insurance
💎Zero Depreciation Cover (Bumper-to-Bumper)
Get full claim amount without depreciation deduction on parts like plastic, fiber, rubber, and metal. Normally, insurers deduct 30-50% depreciation.
Cost: 15-20% extra premium
Best for: New cars (up to 5 years)
🔧Engine Protection Cover
Protects against engine damage due to water ingress, oil leakage, hydrostatic lock, or gearbox damage. Not covered in standard policy.
Cost: 0.5-1% of IDV
Best for: Areas with heavy rainfall
📄Return to Invoice Cover
Pays difference between IDV and invoice price in case of total loss or theft. Ensures you get full vehicle value to buy new car.
Cost: 1-2% of IDV
Best for: New cars (up to 3 years)
🚑Roadside Assistance
24/7 emergency services including towing, flat tire change, fuel delivery, battery jump-start, and locksmith services across India.
Cost: ₹300-₹1,000/year
Best for: Long-distance travelers
🛠️Consumables Cover
Covers cost of consumables like engine oil, coolant, nuts, bolts, screws, washers, grease, and AC gas which are normally excluded from claims.
Cost: 10-15% extra premium
Best for: Frequent drivers
🔑Key Replacement Cover
Covers cost of replacing lost or stolen car keys and reprogramming smart keys. Modern car keys cost ₹5,000-₹50,000 to replace.
Cost: ₹200-₹500/year
Best for: Luxury cars with smart keys
👥Passenger Cover
Personal accident cover for passengers in your vehicle. Provides compensation for death or permanent disability of passengers in accident.
Cost: ₹100 per passenger/year
Best for: Family cars
Factors Affecting Car Insurance Premium
📈 Factors that Increase Premium
- Vehicle age over 10 years
- High-value luxury cars
- Diesel and hybrid vehicles
- Metro cities (Mumbai, Delhi, Bangalore)
- Young drivers below 25 years
- Senior drivers above 60 years
- High annual mileage (>20,000 km)
- Commercial vehicle usage
- Previous claim history
- Open parking without security
- Multiple add-on covers
- Higher IDV selection
📉 Factors that Reduce Premium
- No Claim Bonus (20-50% discount)
- Anti-theft device installation
- Voluntary deductible (₹2,500-₹15,000)
- Covered/garage parking
- Tier-2 and Tier-3 cities
- Petrol and CNG vehicles
- Lower annual mileage
- Experienced drivers (5+ years)
- Multi-year policy (2-3 years)
- Online policy purchase
- Lower IDV selection
- Membership discounts (AAI, AIS)
City Zone Impact on Car Insurance Premium
🏙️ Metro Cities
Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Kolkata
- Highest premium (40% more)
- High traffic density
- More accidents
- Higher theft risk
- Expensive repairs
🏘️ Tier-1 Cities
Ahmedabad, Jaipur, Lucknow, Kochi, Indore, Nagpur
- 20% higher premium
- Moderate traffic
- Medium accident rate
- Moderate theft risk
- Reasonable repair costs
🏡 Tier-2 Cities
Bhopal, Chandigarh, Guwahati, Bhubaneswar, Coimbatore
- Base premium rate
- Lower traffic
- Fewer accidents
- Lower theft risk
- Affordable repairs
🌾 Tier-3 Cities
Smaller cities and towns
- 15% lower premium
- Minimal traffic
- Rare accidents
- Very low theft risk
- Cheap repairs
Third-Party Premium Rates (IRDAI Fixed Rates)
Third-party premium is fixed by IRDAI (Insurance Regulatory and Development Authority of India) based on engine capacity. These rates are same across all insurers.
Up to 1000cc
₹2,072
Small cars, hatchbacks
1000cc - 1500cc
₹3,221
Sedans, compact SUVs
Above 1500cc
₹7,890
Large cars, SUVs, luxury
Multi-Year Discounts:
- 2-year policy: Pay 1.85x (save 7.5%)
- 3-year policy: Pay 2.65x (save 11.7%)
- Electric vehicles: Flat ₹1,500/year
Voluntary Deductible - Reduce Premium by Sharing Risk
Voluntary deductible is the amount you agree to pay from your pocket during claim. Higher deductible reduces premium significantly.
✓ Advantages:
- • Significant premium savings
- • Good for experienced drivers
- • Reduces small claims
- • Protects NCB for minor damages
✗ Disadvantages:
- • Pay deductible for every claim
- • Not suitable for new drivers
- • Out-of-pocket expense during claim
- • May not be worth for small claims
Common Mistakes to Avoid When Buying Car Insurance
- Choosing Only Third-Party: Saves money but leaves your vehicle unprotected. Comprehensive is recommended for vehicles less than 10 years old.
- Selecting Very Low IDV: Reduces premium but may not cover full repair costs or vehicle value in case of total loss.
- Ignoring Add-ons: Zero depreciation and engine protection are crucial for new cars and can save lakhs during claims.
- Not Declaring Modifications: Undeclared modifications (CNG kit, accessories) can lead to claim rejection. Always inform insurer.
- Hiding Claim History: Non-disclosure of previous claims can void policy. Be honest about claim history.
- Not Comparing Insurers: Premium and coverage vary significantly. Compare at least 3-5 insurers before buying.
- Ignoring Claim Settlement Ratio: Choose insurers with 90%+ claim settlement ratio for hassle-free claims.
- Missing Renewal Deadline: Policy lapses after 90 days. Lose NCB and may need vehicle inspection for renewal.
- Not Reading Policy Terms: Understand exclusions, sub-limits, depreciation rates, and claim process before buying.
- Buying Based Only on Price: Cheapest policy may have hidden exclusions. Check coverage, add-ons, and claim process.
Car Insurance Claim Process - Step by Step
Step 1: Immediate Actions After Accident
- Ensure safety of all persons involved
- Call police if there's injury or third-party damage
- Take photos/videos of accident scene and damages
- Collect details of other vehicles involved
- Don't admit fault or sign any documents
Step 2: Inform Insurance Company
- Call insurer within 24-48 hours of accident
- Provide policy number and accident details
- Get claim reference number
- Ask about cashless garage network
- Follow insurer's instructions
Step 3: Vehicle Inspection & Repair
- Take vehicle to network garage for cashless claim
- Surveyor will inspect damages and estimate costs
- Get approval from insurer before starting repairs
- Keep all bills, invoices, and repair documents
- For reimbursement, pay garage and claim later
Step 4: Submit Documents
- Claim form (duly filled and signed)
- Copy of policy document
- Copy of driving license and RC
- FIR copy (if applicable)
- Repair bills and invoices
- Photos of damages
- Surveyor's report
Step 5: Claim Settlement
- Insurer reviews documents and surveyor report
- Claim approved within 7-15 days typically
- For cashless: Insurer pays garage directly
- For reimbursement: Amount credited to your account
- Depreciation and deductible deducted from claim
Expert Tips to Reduce Car Insurance Premium
💰 Premium Saving Strategies
- Maintain Claim-Free Record: Earn up to 50% NCB discount over 5 years
- Install Anti-Theft Device: Get 2.5-5% discount on premium
- Opt for Voluntary Deductible: Save 10-25% by choosing ₹5,000-₹15,000 deductible
- Buy Multi-Year Policy: Save 7-12% on 2-3 year policies
- Purchase Online: Get 5-10% discount on online policies
- Renew Before Expiry: Avoid inspection and maintain NCB
🎯 Smart Coverage Choices
- Choose Right Add-ons: Only select add-ons you actually need
- Avoid Over-Insurance: Don't set IDV higher than market value
- Compare Multiple Quotes: Premium varies 20-30% across insurers
- Bundle Policies: Get discount for multiple vehicles or policies
- Membership Discounts: AAI, AIS members get special rates
- Maintain Good Credit: Some insurers offer discounts for good credit score
When to Renew or Upgrade Your Car Insurance
📅Before Policy Expiry
Renew at least 7-15 days before expiry to avoid lapse. Grace period is only 90 days, after which NCB is lost.
🚗After Buying New Car
Add zero depreciation, return to invoice, and engine protection for new vehicles. These add-ons are most beneficial in first 3-5 years.
🔧After Major Modifications
Inform insurer about CNG/LPG kit installation, accessories, or structural modifications. Update policy to avoid claim rejection.
📍After Relocating to New City
Update registration city as premium varies by zone. Moving from metro to tier-2 city can reduce premium by 20-30%.
⚠️After Claim Settlement
Review coverage and consider NCB protection add-on if you've lost NCB. Evaluate if higher deductible makes sense to reduce premium.
💡Annually During Renewal
Compare quotes from 3-5 insurers every year. Premium and coverage can vary significantly. Switch if you find better deal.
What's NOT Covered in Car Insurance (Standard Exclusions)
❌ General Exclusions:
- Driving without valid license
- Driving under influence of alcohol/drugs
- Using vehicle for illegal activities
- Consequential losses (loss of income)
- Mechanical/electrical breakdown
- Normal wear and tear
- Depreciation on parts (without zero dep)
- Damage to tyres and tubes (unless vehicle damaged)
❌ Specific Exclusions:
- War, nuclear risks, terrorism
- Intentional damage by insured
- Using vehicle outside geographical area
- Contractual liability
- Damage to engine due to water (without engine protection)
- Consumables like oil, coolant (without consumables cover)
- Loss of keys (without key replacement cover)
- Damage during racing or competitions
Top Car Insurance Companies in India
🏆 HDFC ERGO
- • Claim Settlement: 98.5%
- • Network Garages: 7,000+
- • 24/7 Customer Support
- • Quick Claim Processing
🏆 ICICI Lombard
- • Claim Settlement: 97.8%
- • Network Garages: 6,500+
- • Instant Policy Issuance
- • Comprehensive Add-ons
🏆 Bajaj Allianz
- • Claim Settlement: 96.5%
- • Network Garages: 5,000+
- • Affordable Premiums
- • Easy Online Process
🏆 Tata AIG
- • Claim Settlement: 95.2%
- • Network Garages: 4,500+
- • Flexible Coverage Options
- • Good Customer Service
🏆 Reliance General
- • Claim Settlement: 94.8%
- • Network Garages: 4,000+
- • Competitive Pricing
- • Wide Coverage Network
🏆 New India Assurance
- • Claim Settlement: 93.5%
- • Network Garages: 3,500+
- • Government Backed
- • Trusted Brand