Car Insurance Estimator

Seventeen thousand four hundred, and what the NCB is worth

A car with an IDV of ₹6,00,000 at a base premium rate of 3%, with a 20% no-claim bonus and ₹3,000 of add-ons, produces an estimated premium of ₹17,400.

The build-up: base premium is 3% of ₹6,00,000 = ₹18,000. The NCB removes 20%, bringing it to ₹14,400. Add-ons of ₹3,000 bring the total to ₹17,400.

The two things that drive the number

Insured Declared Value is the maximum the insurer will pay if the car is stolen or written off. It is the manufacturer's listed selling price less depreciation, and it is not what you paid or what you could sell it for.

The depreciation schedule is prescribed by IRDAI:

• Up to 6 months — 5%
• 6 months to 1 year — 15%
• 1 to 2 years — 20%
• 2 to 3 years — 30%
• 3 to 4 years — 40%
• 4 to 5 years — 50%
• Over 5 years — mutually agreed between insurer and owner

IDV cuts both ways, and this is where people make the wrong choice. A lower IDV means a lower premium and a smaller payout on total loss. A higher IDV costs more and pays more. Insurers often offer a range, and reducing the IDV to save a few hundred rupees is a poor trade when the downside is several tens of thousands on a claim.

No Claim Bonus rewards claim-free years on a fixed ladder: 20% after one claim-free year, then 25%, 35%, 45% and 50% after five. It applies only to the own-damage portion of the premium, not to third-party, and it belongs to you rather than the car — so it transfers to a new vehicle, and it survives selling the old one provided you obtain an NCB certificate.

A single small claim resets it to zero. On a ₹6 lakh IDV with a 50% NCB, that reset is worth around ₹9,000 a year and takes five years to rebuild, which is why claiming for minor damage is frequently a false economy.

What the premium is made of

Own damage — covers your vehicle, priced on IDV, and the part the NCB discounts.

Third-party liability — mandatory under the Motor Vehicles Act, at rates fixed annually by IRDAI based on engine capacity. Not discounted by NCB, and unlimited for injury and death claims.

Personal accident cover for the owner-driver, mandatory at ₹15 lakh.

Add-ons, which are where most of the real decisions sit.

The add-ons worth considering

Zero depreciation — without it, claims settle after deducting depreciation on replaced parts, which on plastic and rubber components can be 50% or more. Generally worth it for the first five years.

Engine protection — covers hydrostatic lock and engine damage from water ingress, excluded from standard policies. Close to essential in cities that flood.

Return to invoice — on total loss, pays the original invoice value rather than the depreciated IDV. Valuable in the first two or three years, when the gap is largest.

Roadside assistance and consumables cover are inexpensive and modestly useful.

Reading the result

This is an estimate. Actual premiums depend on the exact make and variant, city (metros cost more), fuel type, engine capacity, claim history, and each insurer's own rating. Third-party rates are regulated and identical everywhere; own-damage pricing is competitive and varies considerably.

A voluntary deductible — agreeing to bear a fixed amount of any claim — reduces the premium noticeably and is worth considering if you would not claim for small damage anyway.

Common mistakes

Choosing a low IDV to cut the premium. It reduces the payout when it matters most.

Claiming for minor damage. Losing a 50% NCB usually costs more than the repair.

Letting the policy lapse. A break of more than 90 days forfeits the accumulated NCB entirely.

Buying third-party only on a valuable car. It covers others' losses, not yours.

Skipping zero-depreciation on a new car. Depreciation deductions on a claim are larger than most owners expect.