How To Calculate Motor Insurance Premium online?

How To Calculate Motor Insurance Premium online? Square Insurance - 23 Feb 2022

Calculating Motor Insurance Premium with a premium calculator is a valuable and dependable method for determining which coverage best suits your needs. It saves you time by giving you the information you need to make an informed decision in seconds.

Calculate the Cost-Effectiveness of Auto Insurance

A car insurance policy calculator can be a convenient online tool to determine how much your car insurance will cost.

The time saved by using a vehicle insurance calculator can be reaped. Instantly, it shows you how much you'll pay in insurance premiums from various suppliers in the market.

Compares premium rates and other variables given by several insurers to assist you to select the best insurance for your needs and requirements.

There is no pressure to make a decision, and there is no external influence from an agent that could influence your decision.

It allows you to alter several elements that affect your premium, including the deductible, IDV, and so on. This premium calculator will enable you to play with variables until you find the right combination for you.

The car insurance premium calculator makes it easy to figure out how much you'll pay for your policy. To determine the cost of a car insurance policy, various elements, including the kind of vehicle, the model, the variant, and the fuel type, are considered.

The following factors are used to determine the cost of automobile insurance

It's crucial to keep in mind that the insurance company sets the responsibility premium. IRDA has set a minimum statutory dividend that must be paid (Insurance Regulatory and Development Authority of India). If your car has a high-powered engine, you will pay a higher liability insurance rate.

There is always some value in an automobile at any given time. The worth of your car will assist the insurance company to determine the amount of compensation they will pay you. It is up to IDV to assess your vehicle's value under a comprehensive auto insurance policy.

  • Ex-showroom price + cost of accessories (if any) – IRDA depreciation value
  • You can save up to 50% on your damage (OD) premium if you have an NCB component in your policy.


  • Additional reductions are available for those who pay for their damage.
  • Adding an anti-theft device like a car alarm to your vehicle can help you save money on your auto insurance premium.
  • To save money, you might choose to have a deductible or excess.
  • Car insurance companies offer discounts for military people, government officials, and doctors.


  • The purchase of extra coverage is required for any CD/DVD players, compressed natural gas (CNG) or liquid propane (LPG) units, or other electrical or electronic equipment that have been installed in the vehicle but were not included in the car's original purchase price.

Age and gender-Owner

  • Insurance firms charge a higher price to those between 18 and 25 for automobile insurance.

The model and make of the vehicle

  • Bentleys and Audis are more expensive to insure than cheaper vehicles like the Santro and Alto. Similarly, insurance costs for SUVs are greater than those for regular family cars.

Where are you located in the rest of the world?

  • Getting automobile insurance in cities is more expensive because of the massive volume of traffic.
  • There is also the fact that metropolitan regions have a higher rate of theft and robbery than rural places. This has a direct effect on the cost of automobile insurance.

What kind of fuel do you use?

  • The cost of insuring a CNG-powered vehicle will be higher than insuring a diesel or petrol-powered car.
  • Additionally, a diesel car will cost more to insure than a gasoline-powered vehicle.
  • The price of a diesel car is more than the price of a gasoline model of the same model.
  • A diesel car's repair costs are higher than those of a petrol car after an accident.
  • Car insurance costs went up when diesel automobiles became more popular than gasoline-powered models.

The year of production

  • The lower the IDV, the older the vehicle is. As a result, you'll pay less for insurance, too.

Tips for Using an Online Car Insurance Premium Calculator

Car insurance premiums are calculated differently by each insurance company. But there are two significant divisions, namely the calculation of car insurance premium. To figure out how much auto insurance will cost, you'll have to provide some basic information.

  • Decide on your vehicle's make, model, trim level, and fuel type.
  • The registered Location of your car must be entered accurately.
  • Make sure to select the year that you bought your vehicle.
  • If you claimed in the preceding year, select "Yes" or "No."
  • Car insurance rate quotations can be obtained by entering an OTP sent to your cell phone.

How to Calculate Used Car Insurance Premiums Online?

To calculate a used/old vehicle's insurance premium online, the following information must be provided:

  • Make, model, or a variation of the automobile
  • Details of your current auto insurance policy (if any).
  • The location where the vehicle was registered is the state or city.
  • NCB or previous claim file records and specifics of the prior claim (if any)

Based on the information you've provided, a vehicle insurance premium calculator will be able to estimate how much you'll have to pay each month.

What Factors Go into Determining an Insurance Premium For A New Car?

For new cars, the following information is needed to calculate the premium

  • Car Manufacturer
  • The year of production
  • The model of the vehicle

Car Insurance Premium Calculation Factors

The following are essential criteria that go into calculating the cost of auto insurance premiums

The age of the vehicle's owner

According to insurers ' statistics, under 25-year-old car owners are more likely to be engaged in an accident or incident. Why do young adults pay more for insurance than older people? Because they're younger.

The sort of fuel needed to power the vehicle

It costs more to insure a CNG (Compressed Natural Gas) vehicle than to ensure a standard gasoline/diesel powered vehicle.


Insurance companies also calculate the premium based on where the insured vehicle will be driven most of the time. For example, a metropolitan area with a large traffic volume will be charged a higher premium rate than a rural area with a low volume of traffic.

An insured's declared value (IDV)

In the event of a total loss or theft of the vehicle, the insured declared value is the maximum sum an insurer will pay to the policyholder. According to the brand, manufacturer's selling price, the model of the car, and RTO information, the IDV is determined. It impacts the insurance policy's damage premium.

Cubic Footage

For Own Damage coverage, the car's Cubic capacity is also taken into account. Your car's make, model, and variant are all factors in determining the cost of your insurance.

The year of automobile production

Cars with lower IDV values, like older models, are more affordable than newer models with higher IDV values, which means that the premium for the vehicle is lower.

No-claim bonus (NCB)

There is a discount on Own damage premiums when no claims are lodged throughout the policy's term. This is given to you based on how long you've gone without filing an insurance claim.

ARAI Anti-theft discount

Anti-theft devices that the ARAI has approved are available for a discount of 2.5 percent off the insurance rate.

Tips for Lowering the Cost of Auto Insurance Premiums

Some suggestions to help save money on automobile insurance include the following

Don't make claims that aren't supported by evidence

Saving money on your insurance is as simple as not filing any claims to accumulate a No Claim Bonus (NCB) during your policy year. Besides that, you must drive safely to avoid getting into an accident.

Purchasing auto insurance online has many advantages over traditionally buying a policy. Policyholders can quickly and easily locate an inexpensive plan by comparing policy quotes online. Due to the lack of an agent and other overhead, insurance firms can provide programs at lower pricing when purchased online.

Equip Your Vehicle with Anti-Theft Devices

Not only can installing anti-theft systems help to keep your vehicle safe from theft and other harm, but it can also cut your yearly insurance premiums by about 5%. Anti-theft devices recognized by the Automobile Research Association of India (ARAI) are only eligible for discounts from various insurance companies (ARAI).

Don't Forget to Renew Your Policy

If you renew your auto insurance policy on time, you can prevent a lapse in coverage and avoid having your vehicle inspected. You'll be able to keep your insurance and avoid the premium increase if you do this.

Frequently Asked Questions regarding Car Insurance Calculator

What does it mean to use a premium estimator for your vehicle insurance?

Online tools that assist policyholders in comparing quotes from various insurance companies and determining the monthly premium they will be responsible for paying are auto insurance premium calculators. The most excellent premium calculators available online, you may use an auto insurance premium calculator for no charge

Transfer of NCB to a New Vehicle

The NCB you've earned on your old auto insurance should be applied to your new coverage. This is possible since the NCB is given to the policyholder, not the vehicle. As a result, it is in your best interest to keep the NCB benefit to save money on your new vehicle insurance policy.

Your car's model has an impact on your insurance price, but how?

The make and model of the car is a significant consideration when determining the cost of auto insurance. The Insured Declared Value (IDV) of your vehicle, often known as the "make value," is calculated by the Insured Declared Value (IDV) and the engine cubic capacity. A higher IDV has the result of a higher premium being charged.

To determine how much my auto insurance will cost, I need to know the following

To find out how much your car insurance would cost, go to an insurance company's website and fill out the necessary information. Choose your vehicle's model, year, & registration location from the drop-down menu. Once you have completed all relevant information, the premium estimate will be shown on your computer screen.

To what extent can the premium calculator assist you in determining how much you'll be required to pay for auto insurance?

You can use the premium calculator to figure out how much you'll have to pay in premiums to your insurance provider based on the coverage you select, the Insured Declared Value your input, whether or not you want to include NCB, and other add-on coverage, and additional information you enter. Before acquiring a suitable auto insurance policy, you can make an educated and well-informed selection based on this information.

The use of a vehicle insurance premium calculator has several advantages.

Car insurance premium calculators advantages

  • The coverage proposers benefit significantly from the ease and convenience of online insurance purchasing.
  • Using this tool, you can compare the costs of various insurance policies and then pick the best one for your needs and budget.
  • Your insurance agent can no longer take advantage of you by pressuring you into making rash judgments.

What does "premium" mean?

The amount you pay to your vehicle insurance provider to receive the coverage and benefits associated with a car insurance plan is referred to as a premium. Your automobile insurance premium might be paid monthly, annually, or even half-yearly, depending on the alternatives provided by your particular insurance company for making payments.

To figure out how much your used automobile insurance will cost, all you have to do is go to the perfect insurance website. As a next step, you'll need to supply specifics about your vehicle, such as its model and model year, as well as facts about your current auto insurance coverage.

What are the various elements that could affect my vehicle insurance premium?

Factors influencing car insurance premiums include

  • the vehicle's stated worth
  • the type
  • model and manufacture of the car,
  • the engine's cubic capacity
Also Read - Benefits of Purchase Long-Term Car Insurance?