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Car Insurance Calculator India — Estimate Your Annual Premium

Estimate car insurance premium for third-party and comprehensive policies. Compare costs based on vehicle age type city and IDV to find the best coverage.

Car insurance is mandatory in India with third-party liability insurance required by law under the Motor Vehicles Act. Comprehensive insurance which covers both third-party liability and own damage is strongly recommended for newer vehicles. Premiums depend on your car model age city claim history and chosen add-ons. Understanding how premiums are calculated helps you avoid overpaying while ensuring adequate coverage.

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EMI Calculator

Monthly EMI
₹8,678
Total Interest
₹10,82,776
Total Amount
₹20,82,776
₹1LSlide to adjust loan amount₹10Cr

Key Information

ParameterDetails
Third-Party Premium (Cars)Rs 2094 - Rs 7897 (by engine capacity)
Own Damage PremiumBased on IDV (market value)
No Claim BonusUp to 50% discount for claim-free years
Average Comprehensive PremiumRs 8000 - Rs 25000 per year

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Frequently Asked Questions

How is car insurance premium calculated?

Third-party premium is fixed by IRDAI based on engine capacity. Own damage premium is a percentage of IDV (Insured Declared Value = market value minus depreciation). Your final premium = Third-party + Own damage - NCB discount + Add-on covers + GST (18%). A 3-year-old Maruti Swift with 50% NCB might pay Rs 6000-8000 comprehensive annually.

What is No Claim Bonus and how does it work?

NCB is a discount on your own damage premium for each claim-free year: 20% after 1st year 25% after 2nd 35% after 3rd 45% after 4th and 50% after 5th year. Making a small claim (say Rs 5000) can cost you 50% NCB worth Rs 4000-8000. For small damages consider paying out of pocket to preserve NCB which accumulates over years.

Third-party vs comprehensive insurance which to choose?

Third-party insurance is cheapest (Rs 2000-8000/year) covering only damage you cause to others. For vehicles under 5 years old comprehensive is strongly recommended as it covers theft fire natural disasters and accident damage to your own car. For vehicles older than 8-10 years with low market value third-party only may be sufficient since own damage coverage decreases with depreciation.

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Last updated: 24 March 2026