Car Insurance Premium Calculator

## What is the Car Insurance Premium Calculator? The Car Insurance Premium Calculator helps car owners in India estimate their motor insurance costs. All cars must have at least a third-party liability policy (mandatory by law), and you can add own-damage cover, zero depreciation, return-to-invoice, and roadside assistance for comprehensive protection. ## Formula Used Third Party Premium (mandatory): Based on vehicle cubic capacity (CC): - Up to 1000 CC: Rs 2,072 - 1000 to 1500 CC: Rs 3,221 - Above 1500 CC: Rs 7,890 Own Damage Premium = (IDV x Rate%) - No Claim Bonus + Add-ons IDV = Depreciated value of vehicle (approx 5% depreciation per year from new car price) ## Worked Example New car price: Rs 10,00,000, Age: 3 years, CC: 1200 IDV = Rs 10,00,000 x (1 - 0.15) = Rs 8,50,000 (15% depreciation in year 1) Third Party (1200 CC) = Rs 3,221 Own Damage = IDV x 3.5% approximately Rs 29,750 Less NCB (2 claim-free years) = Rs 29,750 x 0.75 = Rs 22,312 Total indicative premium approximately Rs 25,533 ## Frequently Asked Questions 1. What types of car insurance are mandatory in India? Third Party Liability insurance is mandatory for all motor vehicles under the Motor Vehicles Act. Comprehensive insurance (own damage + third party) is optional but strongly recommended. 2. What is IDV in car insurance? IDV (Insured Declared Value) is the maximum sum your insurer will pay in case of a total loss or theft of your vehicle. It is the current market value of the car, calculated as: New car price minus depreciation. 3. How does No Claim Bonus (NCB) reduce my premium? NCB is a discount on the own-damage premium for every claim-free year, up to a maximum of 50% after 5 consecutive claim-free years: Year 1: 20%, Year 2: 25%, Year 3: 35%, Year 4: 45%, Year 5+: 50%. 4. What is zero depreciation cover? Zero depreciation (add-on) ensures you get full claim without deduction for depreciation on plastic parts, fibre glass, rubber, and metal parts. 5. Is car insurance cheaper for smaller engine cars? Yes. Third party premium is directly linked to engine cubic capacity. Cars with engine up to 1000 CC pay Rs 2,072/year vs Rs 7,890/year for cars above 1500 CC.