According to the Motor Vehicle Act 1988, all car owners must possess car insurance to comply with the legal responsibilities. Also, if you already have insurance, keep them renewed to avoid the policy from being void. 

Looking for affordable car insurance in India might be a daunting task. This is because there are so many insurance providers offering different rates. Hence, the motor insurance cost in India varies depending on the provider. However, several factors determine the cost of a car insurance policy. Some of them are as below – 

Type and Age of Vehicle: The insurance company considers the vehicle's type and age before finalising the car insurance cost. This means the premium for an expensive car would be higher than the average-priced car. In the same way, the insurance premium cost for an old car would be lower than that of a new car. 

Engine Capacity of the Vehicle: The car insurance company considers the engine capacity while determining the premium cost. The higher the cubic capacity(cc) of the engine, the higher the insurance cost. 

Type of Motor Insurance: The car insurance cost will primarily depend on the motor insurance plan you opt for. A third-party insurance premium will be lower than a comprehensive plan. In contrast, comprehensive car insurance protects you from the financial burden that will occur due to damage to your car because of theft, fire, natural disaster, riots, etc. 

Geographical Location: The area where you live also determines the car insurance cost. So, if you live in urban areas with high traffic, you will have to pay a higher premium compared to the lower traffic areas. 

Add-Ons: The insurance provider also considers the add-ons that you purchase. This is because add-ons give additional coverage and are available only with a comprehensive plan. With the extended range, you have to pay a more premium. 

Based on the factors mentioned above, the insurance company will calculate and determine the premium payable by you. However, it is important to know and assess the car insurance policy before buying using a motor insurance premium calculator. 

What is a Car Insurance Premium Calculator?

A car insurance calculator is an online tool that can calculate and compare the premium offered by different insurance companies. This helps you pick the best car insurance online. This tool also allows you to customise your car's IDV and understand the factors that might affect the motor insurance premium. 

Several insurance providers offer car insurance online premium calculators that are easy to use. To calculate the amount payable for your car, follow the steps below -

• Download the insurance provider's application, or visit their website.
• Login or Signup using your email ID/phone number and password.
• Tap on 'Car Insurance.'
• Enter your car details, such as the registration number, make, model, type, and age.
• Set the IDV and select the add-ons if you buy a comprehensive plan.
• Compare and select the plan as per your need.
• If the premium is too high, you can adjust the add-on or the IDV.
• Once satisfied with the plan, tap 'Buy Now' or 'Buy Plan' and pay the premium using net banking, UPI, etc.
• Once the amount is paid, the policy document is sent to your registered email ID. 

The cost of a car insurance policy depends on the factors mentioned above and varies from insurer to insurer. So, check and compare the available plans and pick the best suited for your needs.