Car Insurance Calculator: Premium & IDV Estimator

What Is a Car Insurance Calculator?

A car insurance calculator computes the estimated premium and Insured Declared Value (IDV) for motor insurance policies in India based on vehicle age, cubic capacity, NCB, and add-on covers.

Motor insurance premiums are split into two mandatory standard parts: Own Damage (OD) cover, which protects your vehicle against accidents or theft, and Third Party (TP) liability cover mandated by IRDAI.

This calculator applies official IRDAI third-party tariffs, standard vehicle depreciation percentages, and No Claim Bonus discount slabs across insurers like HDFC ERGO, ICICI Lombard, Acko, and Digit.

Insured Declared Value (IDV) Depreciation Formula

IDV represents the maximum sum insured payable by the insurer in case of total loss or theft. It is calculated by applying age-based depreciation to the car's ex-showroom price.

IRDAI standard vehicle depreciation schedule for IDV calculation.
Vehicle Age	Depreciation Percentage	Sample IDV (on Rs 10L Car)
Brand New (Up to 6 months)	5%	Rs 9,50,000
1 Year Old	15%	Rs 8,50,000
2 Years Old	20%	Rs 8,00,000
3 Years Old	30%	Rs 7,00,000
4 Years Old	40%	Rs 6,00,000
5+ Years Old	50%	Rs 5,00,000

IRDAI Mandatory Third-Party Rates

Third Party liability rates are fixed by IRDAI annually based on engine cubic capacity (CC) and apply uniformly across all insurance companies in India.

IRDAI mandatory third-party annual premium rates (excl. 18% GST).
Engine Capacity Slab	Annual TP Premium (Base)	Total TP Premium (with 18% GST)
Cars under 1000 cc	Rs 2,094	Rs 2,471
Cars 1000 cc to 1500 cc	Rs 3,416	Rs 4,031
Cars above 1500 cc	Rs 7,897	Rs 9,318
Electric Vehicles (EV)	Rs 2,268	Rs 2,676

No Claim Bonus (NCB) Discount Matrix

No Claim Bonus rewards claim-free policy years with discounts on the Own Damage premium component.

No Claim Bonus (NCB) discount slabs by claim-free years.
Claim-Free Years	NCB Discount Percentage
1 Claim-Free Year	20%
2 Consecutive Claim-Free Years	25%
3 Consecutive Claim-Free Years	35%
4 Consecutive Claim-Free Years	45%
5+ Consecutive Claim-Free Years	50% (Max Cap)

How to Use This Car Insurance Calculator

Select Policy Type: Choose between Comprehensive Policy and Third Party Only.
Enter Car Value & Age: Input manufacturer ex-showroom price and select vehicle age.
Set Engine CC & NCB: Select engine displacement category and current No Claim Bonus discount slab.
Review Premium & IDV: View computed IDV, OD premium, IRDAI third-party rates, and total premium with 18% GST.

Frequently Asked Questions

What is IDV in car insurance and how is it calculated?

Insured Declared Value (IDV) is the maximum sum insured payable by the insurer in case of total loss or theft of the vehicle. It is calculated by deducting age-based depreciation from the manufacturer's ex-showroom price.

What are IRDAI third-party car insurance rates for 2026?

IRDAI mandates fixed third-party rates based on engine cubic capacity: Rs 2,094 for cars under 1000cc, Rs 3,416 for 1000cc to 1500cc, and Rs 7,897 for cars above 1500cc.

How does No Claim Bonus (NCB) discount work in car insurance?

No Claim Bonus is a discount on the Own Damage premium component awarded for claim-free policy years, escalating from 20% after year 1 up to a maximum cap of 50% after 5 consecutive claim-free years.

What is Zero Depreciation (Bumper to Bumper) add-on cover?

Zero Depreciation cover ensures that the insurance company pays 100% of plastic, rubber, glass, and metal part replacement costs during accident repairs without deducting standard depreciation.

Is Third Party car insurance mandatory in India?

Yes, under the Motor Vehicles Act 1988, every motor vehicle driving on Indian public roads must hold at least a valid Third Party liability insurance policy.

What is the difference between Comprehensive and Third-Party car insurance?

Third Party insurance only covers legal liability for injury or property damage caused to third parties. Comprehensive insurance covers both third-party liability and Own Damage losses to your own car from accidents, theft, or natural disasters.

How much GST is charged on car insurance premiums in India?

A Goods and Services Tax (GST) rate of 18% is applied to both Own Damage and Third Party motor insurance premium components in India.

Can No Claim Bonus (NCB) be transferred to a new car?

Yes, NCB belongs to the car owner, not the vehicle. You can obtain an NCB certificate from your previous insurer and transfer your accumulated NCB discount to a newly purchased vehicle policy.

What depreciation rate is applied to car parts during insurance claims?

Standard depreciation rates applied without Zero Dep cover are: 50% for rubber, nylon, and plastic parts; 30% for fibreglass parts; 50% for batteries; and 0% to 50% for metal parts based on vehicle age.

How does this car insurance calculator estimate premiums?

This calculator computes IDV based on vehicle age, determines tariff-based Own Damage premium, deducts NCB discounts, adds mandatory IRDAI third-party rates and chosen add-ons, and applies 18% GST.

What is Fermor?

Fermor is a financial platform for India. Every calculator is free to use, and a free account is available to save your results and access them later. Fermor is building an automated financial action system using the Account Aggregator framework to connect real accounts and close the gap between knowing what to do with your money and actually doing it.

Disclaimer: Premium figures generated by this calculator are indicative estimates based on standard IRDAI tariff schedules and average insurance market quotes in India. Final vehicle IDV and premium quotes depend on exact car make, model, variant, state registration, and underwriter policy terms from motor insurance providers like HDFC ERGO, ICICI Lombard, Acko, or Digit.