Pranam Services

Car insurance premium calculator

When buying car insurance, the first thing that comes to mind is the premium that is to be paid. One can calculate his / her Car Insurance premium online through a suitable web portal in order to get a fair estimate of the amount that would have to be spent on the coverage. There are many sites available online which can help a person calculate his/her Car Insurance and also compare the policies offered by the various companies.

A Car Insurance calculator, which is available online, generally asks for the car brand, name of the city in which the car is registered, the year in which the car was bought and whether any claims were made in the previous year or not. Some other details may be asked for as per the requirements however, the above-mentioned ones are the most common.

Thereafter, a person may go through the plans, policies and other details provided by the Car Insurance Calculator and then make a decision. The same process is followed for calculating Four-Wheeler Insurance premium online where, at last, after entering the Name and Mobile Number, an OTP is sent. On entering the OTP, one gets various policy premium quotes to choose the plan that suits them the most.

Types of car insurance we offer

Car Insurance policies can be classified into the following types depending upon the extent of coverage:

• Third-Party Car Insurance
• Comprehensive Car Insurance
• Standalone Own-Damage (OD) Car Insurance
• Bundled Car Insurance
• Pay As You Drive Car Insurance

To ensure uninterrupted benefits, one must make sure to renew the policies from time to time. Let us understand them in detail:

Third-Party liability
This plan protects against the claims made by the third party like the driver of the other vehicle, passengers or owner of the other vehicle, pedestrians, etc. This plan is specifically designed to provide the policyholder cover against the claims made for any bodily damage or injuries to the third party and the damage caused to the vehicle. This is a mandatory policy for all vehicles in India under Motor Vehicle Act, 1988.

Comprehensive Car Cover
This insurance policy comes with higher protection for the vehicle insured. The advantage of buying this insurance policy is that this policy protects the policyholder and covers own vehicle damage due to accident, fire, theft, vandalism, etc. This policy also includes third party liability. Added benefits and features are also provided under this plan which makes it one of the best plans for car insurance.

Standalone Car Insurance
If you already have the mandatory third-party insurance cover for your car, you have the option to go for an own-damage standalone cover. Under this cover, the damages that are suffered by your vehicle due to an accident, theft or because of a natural/ man-made disaster will be covered. You also have the option of including add-ons to your policy.

Bundled Car Insurance
In case you are looking for a long duration coverage for your car, you can opt for Bundled Car Insurance. Under this policy, your vehicle will be covered for third-party liabilities for 3 years. The own-damage cover can be renewed on an annual basis.

Pay As You Drive Car Insurance
Pay As You Drive Car Insurance is a new concept that has been introduced recently in the motor insurance market. It can be quite helpful for people who have multiple cars but do not use them regularly. A kind of comprehensive car insurance, this policy is a combination of OD (Own Damage) and a third-party plan. In such a policy, the premium is charged on the basis of the car’s usage or the total distance that the car covers in a given year.

List of car insurance companies with best claim settlement ratio

An insurance company is judged on the basis of the claim settlement ratio and the incurred claim ratio. Keep in mind that CSR is not a readily available data that is published by the IRDAI annual report. It is an internal data of the company wherein the entire company’s CSR data is available which is not specific to car insurance. Hence a more relatable and trustworthy data is to depend on is the percentage of claims that are settled within 3 months, which is available in the IRDAI Annual Report (2021-22) Here is a list of few leading car insurance companies’ Claim Settlement Ratio and Incurred Claim Ratio (Motor) 2020-21.

Car Insurance Companies	Incurred Claim Ratio (Motor)**	Claim Settlement Ratio (CSR)*
Bajaj Allianz insurance	68.06%	98.48%
New India Assurance insurance	78.20%	–
ICICI Lombard insurance	68.77%	–
Bharti Axa insurance	64.27%	98.55%
Tata AIG insurance	87.96%	–
HDFC ERGO insurance	70.02%	–
Reliance Nippon Insurance	76.89%	95.03%
United India insurance	80%	–
Oriental Insurance	95%	–

*Claim Settlement Ratio is CSR is the total claims paid by the insurance company as against the total number of claims received in any given year.

**Incurred Claim Ratio or ICR is the total claims paid by the insurance company as against the total premium collected across all policies in any given year.

How to choose a four-wheeler insurance policy online?

The following points should be considered when choosing a four-wheeler insurance policy online:

1. Selection of Type of Plan:
   One must analyse his/her car insurance needs and requirements and then finalize the type of plan accordingly.
   Tip: Though only third-party is mandated, it is advised that one opts for a comprehensive policy that offers all-around coverage.
2. Comparing Different Policies:
   One must first try to research and compare the policies themselves on online platforms, like Turtlemint, to get a clear picture of what suits best according to their budget and requirements.
   Tip: Avoid picking a policy only because it costs less. Opting for the one that offers maximum features at the lowest price is advisable.
3. Checking for IDV and Premiums:
   IDV stands for Insured Declared Value. It refers to the current market value of one’s car and the maximum claim an insurer will pay him/her in case of car damaged repair or stolen.
   Remember: A higher IDV gives extended coverage but also increases the premium. So again, one must research and select accordingly.
4. Asking for Add-on Covers: First of all, add-on covers are available only along with Comprehensive Car Insurance. They expand the coverage of one’s policy but also are an added cost to one’s premium. So, one must choose wisely according to his/her needs.
5. Looking for the Claim Process: One must opt for an insurance company which has a simple and prompt claim process. This can be checked by comparing the Claim Settlement Ratio (CSR) of different companies. Higher the CSR, simpler the claim process.

Note: CSR refers to the percentage of claims settled by the insurers in a year.

Benefits of car insurance plans in India

The following are the benefits of having an insurance policy for your car

1. An insurance policy provides monetary benefits to the survivors in case of accident and support in treatment expenses. It also provides death benefits to the nominee or the family members of the deceased/insured
2. It covers the policyholder and pays for lawsuits, legal fees arising out of the accident
3. An insurance policy covers the repair bills of the damage caused to the vehicle due to accident
4. An insurance policy covers the damage caused to the vehicle due to fire or natural calamities, theft and other man-made incidents
5. A car insurance policy provides discounts on premiums for having more than one insurance policy with the same insurance company, in case of theft of the car.
6. An insurance policy provides extended coverage for other people driving the car of the policyholder with permission.
7. An insurance policy provides rewards in the form of No Claim Bonus and others.

Features of car insurance plans in India

The following are few salient features of a car insurance policy

1. Covers for risk
   Car insurance covers the policyholder against risk of damages by man-made disasters like fire, riots, theft, etc, natural disasters like flood, earthquake, landslide, etc and damage during transit, etc
2. The insured value
   The car is insured for a value known as Insured Declared Value which is based on the price of the manufacturer less the depreciation.
3. Premiums
   For car insurance, the policyholder is needed to pay premiums which are decided on the basis of
   • The type of vehicle, model number fuel type, capacity, etc
   • The city
   • Age and profession
   • Accessories added or any modifications made in the policy
4. These factors help in determining car insurance quotes which you are required to pay to buy the policy. You can use online car insurance calculators to find the premium payable for a policy.Add-ons
   This feature allows the policyholder to add extra cover to get protection against the risks that are not covered under the standard policy. Some of such covers are no claim bonus protection, zero depreciation, accident hospitalization, cover for co-passengers and driver, etc.
5. Tenure and claims
   An insurance policy is valid for a year after which they can easily be renewed.Car insurance renewal can be done online in some simple steps. The claim settlement process has also been simplified by reimbursement or cashless services in the network garages

Why is car insurance necessary?

Here are a few reasons why having car insurance is necessary

1. Mandatory:
   Having motor insurance is no longer a choice. The Motor Vehicle Act has made it mandatory for all the vehicles whether private or commercial, to have valid third party car insurance wherein third-party liability is also mandatory. The buyer can choose between third party liability cover or comprehensive cover. The third-party liability has been made mandatory to cover the losses caused to the third party.
2. Reduce the cost of damage:
   Car insurance reduces the cost of damage caused to the vehicle, the policyholder/owner, cost or repair, legal liabilities, loss of life, hospitalisation cost, etc. Car insurance policy will come to rescue at times like these.
3. 24*7 assistance:
   These days most insurance companies provide 24*7 roadside assistance in case of a sudden breakdown
4. Cashless services:
   Car insurance also comes with the option of availing cashless services in the certified network garages across the nation.
5. Relieves mental stress:
   Having an insurance policy for your car gives you peace of mind by supporting financially for unfortunate events.

Key highlights of car insurance policies

Key Highlights	Details
Own Damage Cover	Available under Comprehensive and Stand Alone plans, own-damage provides coverage for the loss incurred by the insured four-wheeler
Third- Party Cover	Covers third-party injury and property damage
Car Insurance Add-ons	A number of add ons available like zero depreciation cover, roadside assistance etc. that enhance the coverage
Personal Accident Cover	Up to INR 15 lakhs
Cashless repairs	Available
Buying/Renewal of Policy	Available both online and offline
No Claim Bonus	Upto 50%

Guide to all car insurance policies

While investing in car insurance, there are a few steps that you must follow before buying the insurance-

1. Familiarize Yourself With Jargons
   If you get familiar with the common terms that are used in a car insurance policy, it will help you in understanding the insurance better.
   • First Party and Second Party –
     The first party is the person who buys the insurance whereas the second party refers to the insurance company.
   • Third-party
     It refers to anybody who gets affected by the insured car. For example, in an accident, the party involved in the accident opposite to the insured car is called the third party.
   • No-Claim Bous
     If as a policyholder, you don’t make a claim during an active year of a policy, then you’ll be entitled to a discounted premium in the upcoming year.
   • Own Damage
     It refers to the damage of the insured car or the policyholder.
   • Rider/Add On
     It refers to the additional coverage policies available with the basic insurance.
   • Claim Settlement Ratio
     It is the ratio between the number of claims settled to the number of claims received by the company in a year.
   • Claim
     It is the money requested from the insurance company to an incurred damage with respect to the purchased policy.
   • Insured Declared Value (IDV)
     The current market value of a car is termed as the Insured Declared Value.
   • Depreciation
     The fall in the value of a car in monetary terms is called depreciation.
2. Know About Policy Types
   When it comes to car insurance, there are two types of policies available- Third-party policy and Comprehensive policy. The third-party insurance is mandated by the government for every car owner as per the Motor Act, 1988. It covers third-party liabilities.A comprehensive policy offers a wider range of benefits in comparison to third party covers. Apart from covering third-party liabilities, it also provides own damage benefits. Events like theft, fire, self-ignition, natural and man-made calamities are also covered. On top of it, you can include Add ons.
3. Choose Add-Ons Wisely
   While purchasing a policy, you may want to increase your coverage with some extras, which are known as Add-ons. Some popular add-ons are-
   • Return to invoice
     In case of a total loss of a car, the total amount mentioned on the invoice will be repaid.
   • Zero Depreciation
     The value of a car reduces with time due to depreciation. If you invest in this value, the insurer won’t take depreciation into account during claim settlement.
   • Roadside Assistance
     With this add-on you can avail facilities like towing, minor repairs, fuel, battery jumpstart, etc.
   • NCB protect
     It helps in retaining the No Claim Bonus even after making a maximum of two claims.
   • Engine Protection
     Covers the cost of repairing/replacement of the car engine.
4. Compare Insurances
   Before making a decision, make sure to compare policies offered by different companies with similar benefits.
5. Track Renewals
   After purchasing a policy, make sure to track the renewal of your policy. If you do not raise a claim during an active year of the policy, you can enjoy discounted premium on the renewal of the policy.

Add-ons in a car insurance policy

Insurance companies provide add-on covers which are additional covers to protect your car and provide extra coverage with the basic insurance cover. Add-on covers can be taken upon payment of extra premium which is added to car insurance quotes to get the final premium payable for the policy. Add-on covers are available under comprehensive car insurance policies. Some common add-ons include the following –

1. No Claim Bonus Protection
   For every claim-free year, the insurance company provides a discount on the premium to be paid upon renewal of the insurance policy. This bonus is cumulative and can increase every year. No Claim Bonus protection cover protects the NCB. No Claim Bonus becomes void on making a claim and this add on the cover helps you in retaining the No Claim Bonus even after making a claim.
2. Engine Protection Cover
   This cover protects the policyholder and compensates for any damage caused to the engine by leakages or water ingression. This add on cover protects the engine, gearbox and differential parts of the insured vehicle.
3. Zero depreciation cover
   This add-on cover compensates for the depreciating value of the car. With this cover, the policyholder does not have to pay for the depreciated value of the car. This add-on is subjected to some claims. The feature of voluntary deductible remains applicable even with zero depreciation add-on cover.
4. Consumable Cover
   This add-on cover compensates for the consumable items like nuts-bolts, grease, lubricants, engine oil, brake oil, etc.
5. Key protection cover
   This add on covers the policyholder for expenses incurred on key replacement or repair. This is a fixed number claim add-on cover and requires FIR in case of theft. The cover pays for replacing the key and lock in case of both thefts and lost.
6. Daily allowance
   This cover gives the benefit of daily allowance when the car is at the workshop for repair for more than 3 days. This allowance is given for travelling through any other mode other than the insured vehicle.
7. Personal Accident Rider
   This rider provides coverage for personal injury, death, disability or damage due to an accident

Benefits of car insurance purchase/renewal online

• It’s really Convenient:
  Online purchase and renewal of car insurance is much more convenient than the traditional offline method as it cuts off on the tiring process of visiting the respective insurance company’s branch or the respective agent. People can do the same now on online platforms.
• It Saves you a lot of time:
  Also, it is time saving as it only takes a few minutes to enter some details and purchase/renew insurance online while it takes hours to visit the branch/agent and fill lengthy forms in the offline process.
• There’s is hardly any Paperwork:
  The documentation process becomes almost nil in the online process. Soft copies are generated for any document and communication is done mostly through emails.
• It truly is Cost effective:
  The online process is more economical as compared to the offline process as it eliminates the insurance agents and other middlemen involved in the offline process thereby reducing the commission expenses.
• It is Easy to Check Company Credibility:
  One can easily find the Incurred Claim Ratio, Claim Settlement Ratio etc. by just one click sitting at the comfort of their homes which in offline mode becomes a tiring and time- consuming process. Reading online reviews and ratings gives an idea of the company’s reputation.

The Application Process for car insurance plans in India

The application process for buying car insurance cannot get easier than this. The online buying option allows the user to get their car insured in just a few clicks without any hustle.

• To buy login to the official website of the policy, you want to buy
• Fill in the details like vehicle registration number, vehicle model, fuel type, age of the vehicle, etc
• Check the premium quote and once satisfied, make the payment online through debit/credit card, net banking, etc.

Eligibility and documents required for buying car insurance plans in India

The eligibility and requirement of documents for buying car insurance are

• RC book
• Driving license
• Vehicle registration
• Identity proof
• Residence proof
• PAN number
• Invoice of the new car
• Insurance policy document (if any)
• No Claim certificate in case of already existing policy

Claim process of car insurance in India

The car insurance claim process has also become as easy as buying car insurance. You can also claim your insurance offline by connecting with the insurance company representative and inform them about the claim to be made.
You will have to follow the following steps

• Inform your insurer about the incident
• File an FIR in case of theft or loss due to man-made incidents
• Do not move your vehicle from the spot before the surveyor visits
• Once the surveyor completes the survey and submits the report, your cashless service option will be available for you to repair your vehicle.
• Submit the original bills and estimate invoice for reimbursement
• Submit documents required like policy document or number, RC, driving license, etc.
• Once the process is completed, the insurance claim will be settled

How to calculate four wheeler premium online?

There are generally two types of car insurance policies- third-party plans and comprehensive plans. To calculate the four wheeler premium online, first you need to determine the type of plan you want to choose.
If you invest in a third-party policy, you can calculate the premium by first checking the premium determined by the Insurance Regulatory and Development Authority of India (IRDAI) and then adding 18% GST to it.

However, for comprehensive policies, various details are required before calculating the premium and it varies from company to company depending on the price. Thus, you can use the premium calculator offered by the other companies or online platforms like Turtlemint.

Car insurance coverage

Let us take a quick look at what is Covered in Car Insurance:
A third-party motor insurance covers:

• Third-party liability that covers injury or death
• Property loss to the third-party
• Personal Accident cover for the owner-driver of the car

As Comprehensive car insurance has a wider scope, it provides more coverage, such as:

• Damages caused to your car and the loss of third-party
• Damages due to accidents, fire, natural calamities, explosions etc. are also compensated
• Robbery or theft of your car

Exclusions in car insurance plans in India

Whenever you buy car insurance, keep the following exclusions. Not every damage needs to be entertained by the insurance.

• Driving under the influence of alcohol, drugs or any other intoxication
• Accidental damage caused due to illegal activity
• Driving without driving license
• Damage caused due to nuclear attack or war
• Using vehicle other than the mentioned use
• Regular wear and tear

How to do car insurance renewal online?

Though the renewal process may vary from site to site, but a basic structure of renewal process is followed by all the websites which is discussed below:

• Enter the Car Details:
  Includes car registration number and some other basic details.
• Compare and select the best suited plan:
  One must examine the plans, premiums and benefits and then select the best one as per the need.
• Add additional Covers/Add-ons:
  One may attach add-ons like zero depreciation, Engine protection etc. to increase protection.
• Make Online Payment:
  One can pay the premium online through any secure gateway from their credit/debit card, net banking, UPI, mobile wallet etc.

Why should you renew an expired car insurance policy now?

Non-renewal of expired car insurance policy can make a person more susceptible to legal and financial risks, some of which are discussed below:

• Legal trouble:
  Driving a car with an expired car insurance policy can be subject to penalties which if enhanced due to repeated offences can lead to imprisonment.
• No Coverage, No Claim:
  An expired policy provides no coverage, hence one cannot request for a claim from the insurance company. In such a case, if the car incurs any damage, no expenses shall be compensated by the insurance company and one will be bound to bear the entire expenses.
• Long Renewal Process:
  An inspection is required to renew an expired policy which makes it a time-taking process otherwise normally, it takes only a few minutes.
• Loss of NCB (No Claim Bonus) Benefit:
  If a policy is not renewed within 90 days of its expiry date, NCB of one’s car insurance can be terminated. This will result in loss of NCB discount and would lower one’s premium for the next year.

Factors that affect your four wheeler insurance premium

Anti-theft Device:
Installation of Anti-theft devices as authorised by the Automotive Research Association of India (ARAI) lowers the policy premium as it lowers the chances of car thefts.

Brand, Model and Variant:
The brand, model, variants etc. affect the cost of the car which in turn increases the risk on the insurance company to compensate thereby, affecting the premium.

No Claim Bonus (NCB):
A No Claim Bonus (NCB) is a discount or reward offered by the insurance companies for spending a claim-free year. The bonus tends to increase with every claim-free year thereby adding more discount to one’s premium the next year during the time of renewal. One can avail up to 50% discount on the upcoming premium.

Age of the Car:
The older a car, the lesser the premium.

Location of the Vehicle:
The area in which a vehicle is registered also plays a key role in the premium amount. Cars registered in Zone A cities, that are the metro cities, have a much higher premium as compared to smaller Zone B cities.

Add-on Covers:
They provide additional coverage but also tend to increase the premium.