Calculate Car Insurance Premium

The insurance premium for some cars are more than others. The engine cubic capacity of your car decides the premium of the third party cover. Higher the cc of your car higher will be the premium of TPI. The make model details are considered if you are choosing other packages and add-ons.

The location in which your car is registered plays an important role in the premium of your car insurance. If you live in a highly populated urban area or in a city then the premium will be higher. Because the chances of claims are higher due to heavy traffic, congestion, vandalism and other factors.

For a new vehicle, you would look for a greater extent of coverage. It is because if the new car gets damaged, the cost of repairs will be high. Instead, for an old vehicle, the cost of replacement of the parts and repairs can be affordable for you. Hence, the age of the vehicle governs the car insurance premium.

Owning a CNG car will attract more CNG car insurance premium because the cost of maintenance is higher in comparison to that of petrol or diesel car. The damage repair costs are higher for the CNG kit installed car. Hence the premium is more.

If you are a bad driver and has higher records of accidents, probability of own damage is more. Also, you won’t get No claim bonus discount, hence you will end up paying a higher premium.

The IDV of the car is the amount for which you seek assurance of payment through an insurance policy at the time of claim. The value of IDV is further governed by depreciation. For higher IDV, the premium will be higher and vice-versa.

The percentage of claim amount that you will have to pay from your pocket at the time of claim is referred as a deductible. Other than the standard deductible applied under the car insurance, you can request the insurer to increase the deductible. For higher deductibles, the premium charged from you will be lower and vice versa.

The Third-Party premium is decided by the Government of India and it is a mandatory cover. But if you take Comprehensive cover then the premium may vary from insurer to insurer depending on discount and rates they offer. If you buy car insurance add-ons along with the Comprehensive Cover, then the premium will increase accordingly.

Most of the insurers in India do not consider age to compute the premium as of now. But in future, they may keep the factor in mind because the younger drivers have a higher probability of causing an accident.

It is the share of the premium you pay to get the coverage for your car against damages. These damages may arise from natural calamities, collision, and theft or vandalism. Each insurer will have its rate for Own Damage premium computation. Further, according to their product loss ratio, they offer discounts. The premium under this type of insurance will vary from insurer to insurer.

These may be extra covers when you seek to widen the limits of cover under the car insurance policy. Depending upon the types of add-on covers, the premium will increase. Some of the add-ons you can choose from including Engine and Gearbox Protection, Zero Depreciation, Consumable Cover, PA cover for passengers, and others.

Lately, considering the rise in the cases of injury to car owners/drivers, the Government has made a Personal Accident cover mandatory. The minimum Sum Insured decided for the risk cover is Rs.15 lakhs. You can further request to enhance the cover in multiples of 1 lakh or 5 lakhs.

Third-Party Liability insurance has been made mandatory by the government in India. The TP premium for your car will be computed after evaluating the cubic capacity of the engine.

Other than these, the percentage of discount offered along with the No Claim Bonus earned by you will also impact the car insurance premium.