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Homeโ€บIndiaโ€บCar Insurance Calculator

Car Insurance Calculator India โ€” FY 2025-26

Calculate your car insurance premium with IDV, third-party (IRDAI rates), own-damage with NCB discount, and 18% GST breakdown. Compare NCB impact across claim-free years and comprehensive vs third-party only coverage.

Estimate your comprehensive car insurance premium with IDV, TP, OD and GST breakdown
โ‚น
Ex-showroom price when new (not on-road price)
years
How old is the car today (0 = brand new)
Determines third-party premium (IRDAI rates)
Electric vehicles get 15% discount on TP premium
Metro cities have slightly higher OD premium due to traffic density
Claim-free years on previous policy. NCB gives OD discount.
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How to Use This Calculator

Car Insurance Estimate tab

Enter your car ex-showroom price (the price when new, not on-road price), car age in years, engine capacity, fuel type, city type (Metro or Non-Metro), and NCB years (claim-free years on your previous policy). The calculator computes your IDV (Insured Declared Value), third-party premium per IRDAI rates, own-damage premium with NCB discount, GST at 18%, and the total annual premium.

NCB Impact tab

Enter the same car details to see a comparison table showing your premium at every NCB level from 0 years to 5+ years. Understand how much you save by maintaining a claim-free record, the cumulative savings over 5 years, and why you should avoid claiming for minor scratches under โ‚น5,000.

Comprehensive vs TP Only tab

Enter your car details to compare third-party only vs comprehensive (TP + OD) insurance. See the price difference, what each policy covers and does not cover, and a coverage comparison table to help you decide which policy type is right for your car.

Share your result

All inputs are encoded in the URL. Click Share to send your exact insurance estimate to a family member, insurance agent, or bookmark it for renewal time.

The Formula

Car insurance premium in India has three main components: IDV calculation, third-party premium (IRDAI-fixed), and own-damage premium (insurer-determined).

IDV (Insured Declared Value):
IDV = Ex-showroom Price × (1 − Depreciation %)

Depreciation schedule (IRDAI):
1 year: 15% | 2 years: 20% | 3 years: 30% | 4 years: 40% | 5 years: 50%
Beyond 5 years: ~60% (agreed value between insurer and policyholder)

Third-Party (TP) Premium (IRDAI FY 2025-26 approx):
Below 1,000cc: โ‚น2,094 | 1,000-1,500cc: โ‚น3,416 | Above 1,500cc: โ‚น7,897
Electric vehicles: 15% discount on TP premium

Own Damage (OD) Premium:
OD Base = IDV × 2.5% (approximate base rate)
Metro loading = OD Base × 5% (for metro cities)
NCB Discount: 0yr: 0% | 1yr: 20% | 2yr: 25% | 3yr: 35% | 4yr: 45% | 5yr+: 50%
OD Final = (OD Base + Metro Loading) × (1 − NCB %)

GST:
GST = (TP Premium + OD Premium) × 18%

Total Annual Premium:
Total = TP Premium + OD Premium + GST

TP premium is fixed by IRDAI and cannot be negotiated. OD premium varies by insurer -- the 2.5% base rate used here is an industry average. Get quotes from multiple insurers for accurate OD rates.

Example

Rajesh — 3-year-old Hyundai Creta (โ‚น12L ex-showroom), 1500cc, 2yr NCB

Rajesh (34) owns a 2023 Hyundai Creta 1.5L petrol (ex-showroom โ‚น12,00,000) and lives in Bengaluru (metro city). He has 2 years of claim-free insurance (NCB). His policy is up for renewal and he wants to understand the premium breakdown.

Step 1: Calculate IDV

Ex-showroom priceโ‚น12,00,000
Car age3 years
Depreciation (3 years)30%
IDVโ‚น8,40,000

Step 2: Third-Party Premium

Engine capacity1,000 - 1,500cc
TP premium (IRDAI)โ‚น3,416

Step 3: Own Damage Premium

OD base (2.5% of โ‚น8,40,000)โ‚น21,000
Metro loading (+5%)โ‚น1,050
OD before NCBโ‚น22,050
NCB discount (2yr = 25%)-โ‚น5,513
OD after NCBโ‚น16,537

Step 4: Total Premium

TP + OD (before GST)โ‚น19,953
GST @ 18%โ‚น3,592
Total annual premiumโ‚น23,545

Rajesh's comprehensive insurance costs โ‚น23,545/year. If he had opted for TP-only, he would pay just โ‚น4,031 (โ‚น3,416 + 18% GST) -- but with no coverage for own damage. Given his car IDV of โ‚น8,40,000, comprehensive insurance is the clear choice: one accident repair can easily cost โ‚น1-3L.

FAQ

IDV is the current market value of your car as determined by the insurance company. It is the maximum amount the insurer will pay in case of total loss (theft or complete damage). IDV is calculated as: Ex-showroom price minus depreciation based on the car's age. For example, a 3-year-old car with โ‚น10L ex-showroom price has an IDV of โ‚น7,00,000 (30% depreciation). For cars older than 5 years, IDV is based on an agreed value between you and the insurer. A higher IDV means higher premium but better payout in case of total loss. You can negotiate IDV within a range (typically +/- 10% of the insurer's calculated value).
NCB is a discount on your Own Damage (OD) premium for every year you do not make a claim. The discount increases with each claim-free year: 1yr = 20%, 2yr = 25%, 3yr = 35%, 4yr = 45%, 5yr+ = 50%. If you make even one claim during a policy year, your NCB resets to 0% at the next renewal. NCB is attached to the policyholder (not the car) and can be transferred when you switch insurers or buy a new car. You need your NCB certificate from your previous insurer to claim the discount. Some insurers offer an NCB protector add-on (โ‚น500-โ‚น1,500/yr) that preserves your NCB even after one claim per year -- worth considering if you have 4-5 years of accumulated NCB.
Yes. Under Section 146 of the Motor Vehicles Act, 1988, third-party (TP) insurance is mandatory for all vehicles on Indian roads. Driving without TP insurance is a punishable offence -- โ‚น2,000 fine for first offence and โ‚น4,000 for subsequent offences, plus potential imprisonment up to 3 months. TP insurance covers your liability if your car causes injury, death, or property damage to a third party. TP premium rates are fixed by IRDAI and are the same across all insurers. Own Damage (OD) insurance is optional but strongly recommended -- it covers damage to your own car from accidents, theft, fire, floods, and natural disasters.
In a standard comprehensive policy, the insurer deducts depreciation on parts when settling a claim. For example, if your bumper costs โ‚น15,000 to replace and has 50% depreciation, the insurer pays only โ‚น7,500 -- you pay the rest. A zero depreciation add-on removes this deduction: the insurer pays the full cost of replacement parts without deducting depreciation. This add-on typically costs 15-20% extra on your OD premium and is available only for cars up to 5 years old. It is highly recommended for new and expensive cars where part replacement costs are significant. Most insurers allow 1-2 zero-dep claims per year.
Yes. NCB belongs to the policyholder, not the car. When you sell your old car and buy a new one, you can transfer your NCB to the new car's insurance policy. You need to: (1) Get an NCB certificate from your current insurer, (2) Provide it to your new insurer when buying the new car's policy. The NCB transfer must happen within 90 days of the previous policy's expiry -- if you miss this window, your NCB resets to 0%. You can also transfer NCB when switching insurers at renewal time. NCB cannot be transferred between family members -- it stays with the person whose name is on the policy.

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