How to Calculate Car Insurance Premium?

Calculating car insurance premiums is something we all have to do if we ever buy a car. We do this to compare different plans and see which ones fit our budget.

Calculating your car’s insurance premium can be easily done online using calculators. The premiums are calculated using a special formula. In this article, we will look at how to calculate a car insurance premium and what factors are considered.

How to Calculate Car Insurance Premium Online?

You can use an online car insurance premium calculator to quickly see how much a plan will cost. Follow these steps to calculate insurance premiums for you:

Step 1: Go to the official website of UIIC and click on “Buy” under “Motor Policy.” You will be directed to the insurance premium calculator.

Step 2: Choose the type of coverage you want: package policy, liability-only policy, or standalone OD policy.

Step 3: Fill in all the details and click on “Click to See Plans.”.

Step 4: Fill in your email address and mobile phone number. Click on “Check Premium.”

Step 5: Find your insurance premium amount on the “Premium Details” screen.

Details You Will Need to Check Car Insurance Premium

You will need the following details for calculating the car insurance premium:

• Registration state

• Manufacturer

• Model

• Fuel type

• Make year

• Make month

• RTO name 

• Date of registration

Formula for Calculating Car Insurance Premium

Your car insurance premium can be calculated using this formula:

Let’s break down the formula and see what the variables are that go into calculating the car insurance premium.

• Own Damage Premium: Own damage policy will compensate you for damages your car sustains in case of an unfortunate incident, such as accidents, natural disasters, or theft.

• No Claim Bonus: No claim bonus is a reward given by insurance providers for not making any claims in a year. This will be applied as a discount when you renew your policy.

• Liability Premium: This refers to third-party liability insurance, which is mandatory for all vehicles in India. The premium for third-party insurance is fixed by the IRDAI and will depend on the engine capacity of your vehicle.

• Cost of Add-ons: Add-ons in insurance provide you additional coverage for specific risks. Each add-on typically costs an additional premium. You can get add-ons like engine protection cover, roadside assistance cover, and zero depreciation cover. 

Conclusion

Getting your car insured is an important step to take as a vehicle owner. To purchase the best insurance coverage for you, you need to compare plans from different providers and see which ones fit your budget.

Car insurance premium calculators come in handy when you need to plan on which covers and add-ons to buy. You can either calculate the premiums using the formula [Premium = Own damage premium – (no claim bonus + discounts) + liability premium (fixed by the IRDAI) + cost of add-ons] or an online calculator.

For vehicle insurance with up to 85% lower premiums, visit the Moneyview website or app.