All car insurance companies tell us is a figure that we have to pay on a yearly basis or at the end of a particular tenure. We are in the blind regarding how that number came into existence. This is why we should use a car insurance calculator. 

A car insurance cost calculator is basically a tool that you can use to see what is the exact amount of coverage premium you should be paying. It allows you to do complex coverage premium calculations within seconds. Just input some basic details about your car and sit back to see the accurate premium figure that you have to pay for the car coverage. 

How to Use a Motor Insurance Calculator 

The user-friendly car insurance price calculator will require you to input certain details before it can do the calculations for you. 

  • Basic Details: Here, you will have to fill in your basic details. This would include your name, mobile number, etc. 
  • Registration Information: Enter the registration details of your car, along with the production year. 
  • Brand of your car: The car insurance calculator will ask for the brand information of your car. 
  • Model Number: Once you give the brand details, you will have to choose the model of the car along with the variant. 
  • Fuel Type: The calculator will ask for the type of fuel your car uses— petrol, diesel, or battery operated.  
  • Insurance Claim History: The calculator will ask you whether you have any existing claims or not. In case you don't have any existing claim, you will have to answer another question regarding your eligibility for a no-claim bonus. 
  • Get Results: The Car insurance policy calculator will compute all the factors and give you a figure for different types of insurance coverages. You can also incorporate other add-on factors to fine-tune things to adjust to your needs so that you obtain a more exact car insurance premium figure. 

Reasons to Use a Car Insurance Policy Calculator

Here are some of the best reasons to use a calculating tool: 

  • Price Points: The primary reason why anyone would want to use a premium calculator is to know the exact amount you will have to pay for insurance coverage. The premium amount depends on the coverage plan you have chosen. 
  • Saves Time: This tool will help you save up a lot of time. You can easily get rid of doing complex calculations. It will do the entire work in a jiffy. If you use an online calculator for car premiums, you won't have many reasons to double-check it. 
  • Help find better Add-ons: Once you get the amount of your premium, you can decide the add-ons your budget can permit you to take. It will help you get better coverage against several types of car damages. 
  • Works for Old and New cars: It gives you better flexibility as you can calculate the insurance premium of new cars. You can also check out the same tool as a used car insurance premium calculator if you need to ascertain what would be the insurance coverage amount if you are buying a second-hand car.  

Types of Car Insurance Policies

There are two major types of car insurance policies in India, but we can broaden it to three major kinds. 

Third-Party Car Insurance Policy: 

This policy type is mandatory if you want to drive a four-wheeler on Indian Roads under the Motor Vehicles Act, 1988. A Third-Party (TP) car insurance policy gives you protection against legal liabilities if your vehicle is involved in an accident with a third party. In case of an accident, the insurer will compensate the third party if there is any damage caused to life, health, or property. 

As getting this type of policy is a mandatory thing, it is best you use a third-party insurance premium calculator to know the exact amount you have to pay before going for a better and more comprehensive insurance policy for your car. 

Comprehensive Car Insurance Policy: 

This type of policy is better as it gives you wider coverage. A comprehensive policy is inclusive of third-party coverage, and it also covers any damage done to your own vehicle. It offers you wider coverage and better benefits in case of theft, accidents, damages, and collision.  


Q1: How to calculate car insurance premium? 

A1: While calculating your car insurance premium, take into consideration the following factors: 

  • Model of the car
  • Age of your car
  • Locality you live in
  • Fuel type
  • Existing claim on insurance policy

When you have all these details handy, feed it to a third-party car insurance premium calculator or a comprehensive insurance calculator to know the amount of premium you would have to pay. 

Q2: Should I use two separate online tools for a new car insurance policy calculator and a used car insurance calculator? 

A2: It is not required; you can find it all in one simple online calculator too. An insurance premium calculator takes into all the factors along with the age of the car and then computes the amount of premium you have to pay. Mostly it depends on your coverage needs and add-ons.

Q3: Why should I use a car insurance renewal premium calculator?  

A3: The tenure of car insurance renewal policy might be of two types, multi-year renewal policy, and annual renewal policy. The premium calculator for car insurance renewal is an online tool that gives an instant quote so that insurance buyers can pick the plan that fits their needs and budget when their current plan comes to an end. 

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