Learn How To Calculate Your Car's Insurance Premiums

Have you ever wondered how your car's insurance is calculated? You must hear insured declaration value i.e. IDV, no claim bonus i.e. ncb, depreciation etc. many times. But do you know their meanings?
Car's Insurance Premium

This simple guide will guide you with a simple guide so that you can easily calculate your vehicle's insurance.

There are two types of insurance insurance in two types. The first is On Damage Comprehensive Cover and the Third Party Cover. Own Damage Comprehensive Cover Depending on the three major factors, they are location, car edge and its engine capacity. While the third party cover only depends on the car's engine capacity.


We take a year old Alto as an example to understand the insights closely.
If your Alto car is more than one year old and is less than 2 years then the insured Declared Value car applied to it will be 80% of the X showroom price. If the car's X showroom price is 4 lakh rupees, then its 80 percent is Rs 3 lakh 20 thousand rupees.
Now after this, the premium calculus will be calculated at 3.127 per cent. It will look at 3 lakh 20 thousand rupees. According to this, the money that will be made will be 10 thousand rupees.

Now, the insurance premium comes in handy. This company rate company is different. Many companies give a few percent discount on premium amounts. Let's understand it with an example. Let's say that if a company is paying 50 percent discount then 50 percent of the 10 thousand rupees was raised to 5 thousand rupees.


Now the next and important stop is the No Claim Bonus. This shows how much money you have to pay for the insurance. If you have not filed for insurance last year, you get a discount of about 20 percent in premium. This discount increases in the coming years if you do not claim insurance. Remember that we are talking about cars for less than one year and less than two years old. In this view, if we look at 5000 rupees, 20 per cent no claim bonus is made according to the bonus of one thousand rupees. In this sense, you get a rebate of premium of Rs 5,000 for a sum of Rs 5,000 and you only have to pay a premium of Rs 4 thousand as a premium.

The second stop is the third party premium. This is to compensate for the injury or loss of someone other than you. The amount of premium is fixed according to the capacity of the car's engine. It is being revived year after year. For example, if the Alto car is below 1,000 cc, then its premium will be Rs 1,468. For cars with a capacity of 1 thousand to 1,500 cc capacity, a premium of Rs 1,598 is charged as premium. Whereas vehicles for more than 1,500 cc have to pay 4,931 rupees. In such a situation, you will get Rs 1,468, which is more than 1 thousand cc engine, it will be added to 4 thousand rupees. In such a case, the total amount will be Rs 5,468.


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