Car insurance is one of the mandatory documents to have in India. Once you buy a car, it compulsory to get its insurance done. As per legal requirements it is required to always keep the insurance handy whenever you are on the road in a car. Most of the car insurance policies are valid for one year. After a year, you will have to renew the car insurance policy and the new premium is decided on the basis of factors like depreciation, NCB, and applicable taxes.
These days most of the companies also have a car insurance premium calculator available on their portal. They would ask you to fill up the details like car brand name, model of the car, the year of the manufacture, and registration date etc and calculate your premium.
Calculation of Car Insurance Premium
The calculation of premium is done mostly by this simple formula:
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