All About Motor Insurance Calculators

In India, the law makes it compulsory to have motor insurance if you own a car. A motor insurance calculator helps in determining the amount of premium you have to pay for the insurance on your vehicle. You will need to enter the details about your car, and the tool will provide a quote.

For a used car, you need to enter the following details to find out the amount of premium you need to pay:

• The name of the person buying the policy, their contact information and address
• The make and model of the car
• Type of fuel the vehicle uses
• Year in which the vehicle was manufactured (to determine the age of the car)
• Date of registration of the motor vehicle and the registration number
• Details of previous insurance plan like date of expiry
• Information about any claims that might have been made during the last year
• Information about any change in ownership

If you are buying insurance for a new car, then the following details need to be furnished:

• Information on the owner of the vehicle, like name, contact number, address
• Car model and make, and variant if any
• Manufacturer name
• State in which the car is registered
• Year in which the care was manufactured

Some other details that might be required include:

• Insurance Declared Value (IDV)
• The cubic capacity of the car
• Age, gender and occupation of the car owner
• If the policyholder is opting for any voluntary deductibles

1. Make and model of your car: A safer build will make the vehicle less susceptible to accidents, and consequently, the insurance premium will be lower.
2. Location of car owner: If the vehicle is registered in an area that is prone to accidents or theft, the premium for its insurance will be higher.
3. Age of the person who owns the car: People below 25 years of age are considered as risky drivers and thus need to pay higher premiums for motor insurance.
4. Type of fuel the car uses: If your vehicle is equipped with a CNG kit, the insurance coverage will be costly.
5. Car’s IDV: It is calculated as the value of the vehicle minus depreciation. A higher IDV will fetch a higher premium. As the age of your car increases, depreciation goes up, and IDV decreases.
6. Previous claims: If you have not made any claims on your last insurance cover, it signifies that you have been a responsible driver and you become eligible for the no cliams bonus .

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.