Car Insurance Calculator
Estimate your car insurance premium based on IDV, city, and No-Claim Bonus.
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📘 What is the Car Insurance Calculator?
Car insurance premiums in India are built from a few specific, calculable components — the Insured Declared Value (IDV), an Own Damage premium based on that IDV, a flat third-party premium, and a No-Claim Bonus discount. This calculator breaks down each piece so you can see exactly what is driving your estimated premium.
⚙️ How Car Insurance is calculated
How IDV is calculated
IDV is your car's current market value after depreciation, following a schedule set by IRDAI guidelines — roughly 10% depreciation per year, capped at 60% for older vehicles. A higher IDV means a higher premium, but also a higher payout in case of total loss or theft.
Own Damage premium and city tier
The Own Damage premium is calculated as a percentage of IDV, with metro cities typically carrying a slightly higher rate than tier-2 or tier-3 cities, reflecting generally higher claim frequency and repair costs in larger cities.
No-Claim Bonus — and why it follows you, not your car
NCB increases by 5 percentage points for each claim-free year, up to a maximum of 50%, and importantly transfers with you to a new vehicle if you switch cars without filing a claim — it is tied to your claims history, not the specific car insured.
Net premium
Net Premium = (IDV × OD rate + third-party premium) × (1 − NCB%)
🧮 Worked examples
Example — 2-year-old car, metro, 20% NCB
Car value ₹8,00,000, 2 years old, metro city, 20% No-Claim Bonus.
→ IDV ≈₹6.4 lakh, OD premium ≈₹22,400, gross premium ≈₹24,494, NCB discount ≈₹4,899, net premium ≈₹19,595/year
Example — same car, higher NCB
Same car and city, but 50% NCB (maximum, after 5 claim-free years).
→ Net premium drops further as the higher NCB discount applies to the same gross premium base — illustrating the real value of maintaining a claims-free record
💡 Original insights & how to use this calculator
Choosing the right IDV when renewing
Insurers sometimes offer to set IDV below the standard depreciation schedule to reduce your premium — but this also reduces your payout in a total-loss claim, so weigh the premium saving against the reduced protection carefully.
Protecting your No-Claim Bonus
For minor damage where the repair cost is close to or below your NCB discount value, paying out of pocket and preserving your claims-free record is often more economical than filing a claim and losing accumulated NCB.
Transferring NCB when buying a new car
When you sell your current car and buy a new one, your accumulated NCB transfers to the new policy — make sure your insurer issues an NCB retention certificate when you sell to avoid losing this benefit.
💡 Expert Tips
Your No-Claim Bonus (NCB) is tied to you, not your car — it transfers to a new vehicle if you switch cars without making a claim.
Compare IDV across insurers — a lower IDV reduces your premium but also reduces your payout in case of total loss.
How to read your result
IDV (Insured Declared Value) decreases every year as the car depreciates, which directly reduces your premium but also caps your maximum payout in a total-loss claim — a lower IDV means lower premium today but less compensation if the car is ever declared a total loss.
⚠️ Common Mistakes
✕ Under-declaring IDV to reduce premium without considering the claim payout impact.
✓ A lower IDV directly reduces the maximum you'd receive in a total-loss or theft claim — don't sacrifice adequate claim coverage purely to minimize the premium.
✕ Losing No-Claim Bonus (NCB) by filing a claim for a minor, affordable repair.
✓ NCB (up to 50% premium discount) resets after any claim — for small, affordable repairs, paying out of pocket and preserving NCB is often cheaper over multiple years than filing a claim.
✕ Letting the policy lapse, even briefly, between renewals.
✓ A lapsed policy typically means losing accumulated NCB and can require a fresh inspection — renew before expiry, not after.
Frequently Asked
What is IDV in car insurance?▾
Insured Declared Value — the current market value of your car after depreciation, which forms the basis for your premium and maximum claim payout.
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