Motor Insurance Calculator
Calculate car and two-wheeler insurance premium with IDV depreciation, IRDAI 2026 third-party tariff, NCB, and popular add-ons.
Vehicle Details
Premium Estimate
Total Annual Premium (incl. GST)
₹22,496
IDV: ₹5,60,000 after 30% depreciation
Own Damage
₹12,544
Third-Party
₹3,416
IRDAI 2026
Add-Ons
₹3,105
GST (18%)
₹3,432
NCB Savings
₹3,481
Gross Pre-GST
₹19,065
IRDAI 2026 Third-Party Tariff
Private cars: ≤1000cc ₹2,094 · 1000-1500cc ₹3,416 · >1500cc ₹7,897
Two-wheelers: ≤75cc ₹538 · 75-150cc ₹714 · 150-350cc ₹1,366 · >350cc ₹2,804
Third-party cover is mandatory under the Motor Vehicles Act. Rates are fixed by IRDAI annually.
How car and bike insurance premiums are calculated in India
A motor insurance premium has three components: Own Damage (OD) priced by the insurer,Third-Party (TP) fixed by IRDAI, and optional add-ons. Over all three, you also pay 18% GST.
1. Insured Declared Value (IDV)
IDV is the agreed market value of your vehicle — the maximum payout in case of total loss or theft. It's computed as ex-showroom price × (1 − depreciation). IRDAI's standard schedule:
- New (<6 months) — 5% depreciation
- 6 months to 1 year — 15%
- 1-2 years — 20%
- 2-3 years — 30%
- 3-4 years — 40%
- 4-5 years — 50%
- 5+ years — mutually agreed value (typically 50-70% dep)
2. Own Damage premium
OD typically runs 2-3.5% of IDV, depending on: city (metros cost more due to accident frequency), vehicle age (older vehicles get loaded 10-20%), make/model (luxury cars cost more to repair), and claim history. Your No-Claim-Bonus (NCB) — starting at 20% after the first claim-free year and climbing to 50% after five — is applied as a discount on OD.
3. Third-Party (mandatory, IRDAI-fixed)
Third-party cover pays for injury/death/damage caused to others. It is mandatory under the Motor Vehicles Act. IRDAI revises the tariff every year; 2026 rates:
- Private car ≤1000cc: ₹2,094
- Private car 1000-1500cc: ₹3,416
- Private car >1500cc: ₹7,897
- Two-wheeler ≤75cc: ₹538
- Two-wheeler 75-150cc: ₹714
- Two-wheeler 150-350cc: ₹1,366
- Two-wheeler >350cc: ₹2,804
4. Add-ons worth buying
- Zero Depreciation: claim pays full repair cost without deducting depreciation on parts — essential for cars under 5 years old. Adds ~20% to OD.
- Engine Protect: covers water-ingress / hydrostatic lock damage — a must-have in flood-prone metros (Mumbai, Chennai, Bengaluru). ~6% loading.
- Return to Invoice: in case of total loss / theft in year 1-3, the insurer pays the full invoice price (ex-showroom + RTO + insurance) rather than depreciated IDV. ~10% loading. Best for new cars.
- Roadside Assistance: free towing, flat-tyre help, battery boost, fuel delivery. Cheap (₹200-400/year via add-on, ~2% of OD).
NCB preservation tip
NCB is attached to the owner, not the car. Selling a car? Get an NCB retention certificate from your insurer (valid 3 years) and transfer the bonus to your next vehicle — can save ₹8,000-25,000.
Common questions about Motor Insurance
What is IDV and why does it change every year?+
IDV (Insured Declared Value) is the maximum payout on total loss or theft — equal to ex-showroom price minus depreciation. IRDAI's standard schedule: 5% first 6 months, 15% under 1 year, 20% in year 1-2, 30% in year 2-3, 40% in year 3-4, 50% in year 4-5. Post 5 years, IDV is mutually agreed. Higher IDV means higher premium but higher payout — don't auto-accept low IDV just to cut premium.
Zero depreciation add-on — worth it?+
Yes, for cars under 5 years old. Without zero-dep, the insurer deducts 30-50% depreciation on plastic/rubber/fibre parts during claim — a ₹80,000 bumper/panel repair could net you just ₹45,000. Zero-dep (~20% premium loading) removes this deduction entirely. For cars older than 5 years, most insurers don't offer zero-dep and standard policy is fine.
How does No Claim Bonus (NCB) work?+
NCB is a discount on the OD premium for every claim-free year: 20% after year 1, 25% after year 2, 35% after year 3, 45% after year 4, and 50% after year 5. Single small claim resets it to 0% — so think twice before filing claims under ₹10,000 for a bumper scratch. NCB is retained by the owner, not the car; sell a car with 45% NCB and transfer it to your new vehicle via retention certificate.
IRDAI 2026 third-party tariff — why is TP mandatory?+
Third-party cover pays for injury, death, or property damage to others — mandatory under Motor Vehicles Act 1988. Driving without TP is a criminal offence. IRDAI fixes TP premium annually: private car ≤1000cc ₹2,094, 1000-1500cc ₹3,416, >1500cc ₹7,897; two-wheeler ≤75cc ₹538, 75-150cc ₹714, 150-350cc ₹1,366, >350cc ₹2,804. TP-only policies are cheapest but leave YOUR vehicle uninsured.
Should I take a 1-year, 3-year, or long-term policy?+
Since Sept 2018, new cars must buy 3-year TP (bike: 5-year TP) at registration. OD can still be annual. For existing vehicles, annual policies offer flexibility (switch insurer, adjust IDV, add/drop riders yearly). Multi-year bundles give 10-15% discount but lock you in — only worthwhile if you know you'll stay claim-free.
What's covered under personal accident cover?+
IRDAI mandates ₹15 lakh personal accident (PA) cover for the owner-driver included in all motor policies (₹1 lakh for pillion riders). Pays on accidental death or permanent total disability. If you already have adequate term + disability insurance, this is somewhat redundant — but it's cheap (~₹750/year) and mandatory. Consider buying an add-on PA cover for passengers (₹50,000-₹2L per seat).
Break-in policy vs renewal — why insurers inspect?+
If your policy lapses (even by a day), the insurer conducts a pre-insurance inspection — and the vehicle must be accident/damage-free at that moment. Never let a policy expire; renew 15-30 days before due date. Lapsed policies also reset NCB to 0% if the gap exceeds 90 days. Set up auto-debit or calendar alerts.