Car Insurance Premium
Calculator 2026

Car insurance premium has three components: (1) Own Damage (OD) premium — based on IDV, vehicle age, engine CC, zone, and insurer pricing (deregulated since April 2020, varies by insurer). (2) Third-Party (TP) premium — fixed by IRDAI, identical across all insurers for a given engine capacity. (3) Add-on covers — optional extras priced by each insurer. Formula: Total = (OD Premium - NCB Discount + Add-ons) + TP Premium + 18% GST. A Maruti Swift (1197cc), 2 years old, Zone A, 25% NCB, no add-ons pays approximately Rs 8,500-12,000 comprehensive.

IDV (Insured Declared Value) is the maximum amount your insurer will pay if the car is stolen or totally destroyed. It is calculated as: ex-showroom price minus depreciation based on vehicle age. A brand new car (0-6 months) gets 5% depreciation, 1-2 years gets 20%, 3-4 years gets 40%, and 4-5 years gets 50%. Beyond 5 years, IDV is mutually agreed between insurer and policyholder (typically 30-40% of ex-showroom). Insurers often set IDV 10-20% below actual market value — you can negotiate it upward.

IRDAI-fixed TP rates (effective June 2022, still current): Up to 1,000cc = Rs 2,094/year. 1,001-1,500cc = Rs 3,416/year. Above 1,500cc = Rs 7,897/year. For new cars, 3-year bundled TP is mandatory: up to 1,000cc = Rs 6,521, 1,001-1,500cc = Rs 10,640, above 1,500cc = Rs 24,596. Electric vehicles get a 15% discount: up to 30 kW = Rs 5,543, 30-65 kW = Rs 9,044, above 65 kW = Rs 20,907. These rates are identical across ALL insurers — there is zero reason to compare TP-only policies on price.

NCB (No Claim Bonus) is a discount on OD premium for every claim-free year. Slabs: 1 year = 20%, 2 years = 25%, 3 years = 35%, 4 years = 45%, 5+ years = 50%. NCB applies ONLY to OD premium, not TP or add-ons. On Rs 10,000 OD premium, 50% NCB saves Rs 5,000/year. Over 5 claim-free years, cumulative NCB savings can exceed Rs 15,000-20,000. Making a single claim resets NCB to 0%. NCB belongs to the owner (not the car) — it transfers when switching insurers but is lost when selling the car.

For cars under 5 years old: almost always yes. Without zero-dep, claims are paid AFTER deducting part-wise depreciation: rubber/plastic parts = 50%, batteries = 50%, paint = 50%, fiberglass = 30%, metal parts = 10-50% (depending on age). On a 3-year-old car, a Rs 30,000 bumper + headlight claim pays only Rs 18,000-22,000 without zero-dep. Zero-dep costs approximately 15% of OD premium (Rs 800-2,500/year for most cars). It pays for itself on a single moderate claim. Skip it only on cars older than 5 years where the add-on cost exceeds its benefit.

Third-party (TP) covers ONLY damage you cause to others (death, injury, property) — it is legally mandatory. Comprehensive covers TP liability PLUS damage to YOUR car (accidents, theft, fire, natural disasters). TP-only costs Rs 2,094-7,897/year. Comprehensive costs Rs 6,000-40,000+ depending on car value. TP-only makes sense for cars older than 10 years with very low IDV. For cars under 8 years, comprehensive is strongly recommended — a single parking dent repair (Rs 8,000-15,000) exceeds the OD premium difference.

Voluntary deductible is the amount you agree to pay from your pocket on every claim, on top of the compulsory deductible (Rs 1,000 for cars up to 1,500cc, Rs 2,000 above). Higher voluntary deductible = lower OD premium. Rs 2,500 voluntary saves approximately 10-15% on OD. Rs 5,000 saves 15-20%. Rs 7,500 saves 20-25%. Rs 15,000 saves 25-35%. If you have not made a claim in 3+ years, choosing Rs 5,000-7,500 voluntary deductible is a smart move — the premium savings compound annually while you maintain NCB.

Yes. RTO registration zone affects OD premium. Zone A (metros: Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune) has 15-25% higher OD premiums than Zone B (all other cities). This is because metros have higher accident rates, theft incidence, and repair costs. TP premium is NOT affected by zone — it is the same nationwide. A Creta in Mumbai may cost Rs 5,000-7,000 more annually in OD than the same Creta in Jaipur.

Standard comprehensive excludes: (1) mechanical/electrical breakdown and wear-and-tear, (2) damage while driving under influence of alcohol/drugs, (3) damage without a valid driving license, (4) using the car for commercial purposes on a private policy, (5) consequential loss (e.g., business loss due to car being in garage), (6) war, nuclear damage, radioactive contamination, (7) depreciation on parts during claims (unless zero-dep add-on), (8) engine hydrostatic lock from water (unless engine protect add-on), (9) tyre damage from road hazards (unless tyre protect add-on). Read the exclusions list — "comprehensive" does not mean "everything."

NCB belongs to the policyholder, not the insurer. To transfer: (1) Get your existing policy copy showing claim-free years. (2) Apply to the new insurer before the policy expires. (3) New insurer verifies NCB via the IIB (Insurance Information Bureau) central database. (4) NCB is applied on OD premium of the new policy. Grace period: if your policy lapses, you have 90 days to renew with another insurer without losing NCB. Beyond 90 days, NCB resets to 0%. Some insurers create friction during transfer — if delayed, escalate to the IRDAI grievance portal.

TP premium for EVs is approximately 15% lower than equivalent ICE vehicles (IRDAI mandated). New EVs also get mandatory 3-year bundled TP (same as ICE). However, OD premium for EVs is often HIGHER because: (1) EV repair costs are 30-50% higher (specialized parts, battery systems), (2) fewer authorized repair centers, (3) battery replacement costs Rs 3-8 lakh. Battery-specific add-on cover is critical for EVs — it covers battery damage from accidents, water ingression, and malfunction. Without it, a battery issue could cost more than the annual premium several times over.

Claim Settlement Ratio (CSR) is the percentage of claims approved out of total claims received. For motor insurance, look at the motor-specific CSR, not the overall company CSR (which includes life/health). A 98% CSR means 2 out of 100 claims are rejected. However, "settled" includes partial settlements — check the CSR by amount (rupees paid vs claimed). Common rejection reasons: late intimation (not informing within 24 hours), driving without valid license, DUI, material non-disclosure. Always intimate your insurer within 24 hours of any incident, even if you are not sure you will claim.