Know How Motor Insurance Premiums are Calculated in India


Want to calculate motor insurance premiums? Want to know about motor insurance? Many questions come up when we consider motor insurance. One of those is how to calculate motor insurance. Another question is: what benefits will I get from getting insurance? And also, what factors need to be considered when applying for a motor insurance calculator?

How to calculate Motor insurance calculator cost is a common question. The policy documents contain several unique instances, exclusions, and terms and conditions.

Most people agree with the insurer’s premium. But they don’t know how it was set. The premium that motor insurance calculator policyholders must pay is influenced by several factors, including:

●      Personal accident.

●      Own damage cover.

●      Third-party cover.

●      Riders.

Personal accident cover

In the event of an accident or other incapacity-causing event, the policyholder is protected by the personal accident coverage portion of the premium. Disabling injuries is a common result of car accidents. So taking disability insurance is a must-have. Motor insurance calculator is consequently even more important to have as protection in accidents. It is important to realise that as the level of coverage increases, so does the cost.

Own Damage Cover

Own damage insurance coverage is a good choice for policyholders. A motor insurance calculator policy may not always cover damage to the car caused by earthquakes, hurricanes, fires, or accidents. It’s better to have investments with higher declared motor insurance calculator values. They help raise premium costs. The IDV, on the other hand, goes down as the car gets older. The policyholders should be aware of this.

Third-Party Cover

In India, a third-party auto and motor insurance calculator is required. It protects the insurer from legal liability. This coverage doesn’t cover repairs, though.

So, when choosing a policy, people should make sure it covers damage to their cars. The Insurance Regulatory Authority of India also decides how much the insurance policyholder has to pay based on the size of the vehicle.

Other Riders

Riders and add-on plans are other types of investments that policyholders should make. The main benefit of riders is that they help protect the interests of the policyholder without costing a lot of money.

Roadside assistance is a popular rider that many policyholders choose. This is especially helpful when the policyholder is travelling to a new place. The no-claim bonus is another popular rider. It gives policyholders a big discount on their premiums if they don’t make any claims during the policy year.

What does a motor insurance calculator do?

Calculating the motor insurance calculator premium that must be paid is a problem that many people with insurance policies encounter. However, a motor insurance calculator can be used online to make this task easier.

The following factors must be taken into account to determine the online auto insurance premium with a calculator:

●      IDV

●      Cubic capacity

●      Age of the motor vehicle

●      IDV

IDV, or the insured declared value of the car, is merely an estimation provided by the motor insurance calculator provider when you purchase automobile insurance in India. This is the highest claim amount that a policyholder may submit in the case of theft or an accident.

Taking depreciation into account, IDV rates fluctuate over time. Significantly, comprehensive motor insurance calculator policies are the only ones that incorporate IDV.

●      Cubic Capacity

The measurement of a vehicle’s engine size is called its cubic capacity, or cc. It is constant. So unlike IDV, engine size has no impact on how much a vehicle’s insurance premium will cost. It should be noted, nonetheless, that automobiles with larger engines come with a higher cost. Under the Indian Motor Tariff Act, the tariff rates are determined and governed.

●      Age of the motor vehicle

When an online motor insurance calculator figures out your premium, one of the things it looks at is how old your car is. As the car gets older, the rate of depreciation will go up.

Benefits of determining car insurance premiums

Before applying for a car loan, it can be helpful to have a rough idea of the car insurance calculator premium that will be charged on that loan. These things are:

●      If customers know how much of a premium they will have to pay, they can plan their finances. Doing so and paying back the loan won’t put them in a difficult financial situation.

●      Customers can choose the best loan option by comparing different loan options.

●      It will be much easier to plan in general.

What Determines the Cost of Auto Insurance?

The amount of the premium that customers must pay is determined by a variety of variables. These consist of:

●      IDV stands for Insured Declared Value. It is also known as the most a customer can get for the car.

●      Age and type of car: According to the motor insurance calculator, the premium goes up with the age of the car.

●      Cars are assets, and over time, assets lose their value.

●      The value of expensive cars with unique upgrades will also go up. Size of a car’s engine, or several cubic inches: The premium goes up as the engine size, or several cubic inches, goes up.

●      Where in the world the car is bought will also affect the price of the premium.

●      Extra equipment on the car that wasn’t there when it was bought will also make the premiums go up.

●      Discounts for not making a claim and bonuses for not having your car stolen can also lower your premium.


The point of the article is to explain how to figure out how much your motor insurance costs will be. In the world we live in today, buying a car is both a necessity and a luxury. Due to the high cost of the purchase, clients will still need to insure their vehicles for safety. This is also to avoid more trouble if the vehicle gets damaged. Customers can lower the amount of their premium payment by making sure their IDV is correct and by buying a car that meets their needs. Find out what your options are before deciding on a motor insurance calculator plan.

Also visit Piramal Finance for more in-depth, educational articles.