Third-party liability car insurance premium rates 2026
Third-party car insurance is mandatory under Indian motor laws. It covers legal liability arising from injury, death, or property damage caused to a third party due to your car. The premium for third-party liability insurance is fixed as per regulatory guidelines and depends mainly on the engine capacity of the vehicle.
For 2026, third-party car insurance premium rates are structured based on engine size, as shown below:
● Cars up to 1000 cc: Lower fixed premium rate, suitable for small and entry-level cars.
● Cars between 1000 cc and 1500 cc: Moderate premium rate applicable to mid-sized vehicles.
● Cars above 1500 cc: Higher fixed premium rate due to larger engine capacity and increased risk exposure.
To calculate the exact premium for your vehicle, you can use the premium calculator available on the Zurich Kotak Car Insurance page. By entering basic details such as your car’s registration number, make, and model, you can get an accurate premium estimate instantly.
Details required to calculate the car insurance premium
To calculate your car insurance premium, you will need to enter certain basic details about your vehicle and coverage preferences. These details help the premium calculator provide an accurate estimate.
1. Car registration number
Enter your vehicle’s registration number. The system may automatically retrieve key information such as the make and model of your car.
2. Vehicle details
If the registration number is not available, you will need to manually provide:
● Car make and model
● Fuel type
● Variant
● Year of manufacture
● RTO location
3. Type of insurance cover
Select the type of policy you wish to purchase, such as third-party liability insurance or a comprehensive car insurance policy.
4. Previous insurance information
You may be required to share:
● Details of your previous insurer
● Policy expiry date
● Claim history for the previous policy period
5. No Claim Bonus (NCB)
If you have not made any claims in the previous policy year, you can declare your eligible NCB to receive a discount on the premium.
6. Add-on covers (optional)
If you choose a comprehensive policy, you can select additional covers such as zero depreciation or engine protect. These add-ons will influence the final premium amount.
By providing these details accurately, you can receive an instant and reliable premium estimate tailored to your vehicle and insurance needs.
How is Car Insurance Premium Calculated?
Using this simple formula, you can better understand the calculation of car insurance premiums.
Premium = Own Damage Premium - (No claim bonus + discounts) + Liability Premium as Fixed by the IRDAI + Cost of Add-ons
The following is a sample car insurance calculation for your reference
Year of Manufacture | 2012 | Comprehensive Policy with NCB (all values in Rupees) |
|---|
Ex Showroom Price | 4,16,000 (X) | |
Depreciation Percentage | 20% * X | Rs.83,200 (Y) |
Insured Declared Value (IDV) | 3,32,800 (X - Y) | Rs.3,32,800 (Z) |
Own Damage Premium | 1.970% | Rs.6,556 (A) |
NCB discounts | 20% * A | Rs.1,311 (B) |
Total OD Premium | 5,425 (A - B) | Rs.5,245 (C) |
Personal Accident Cover | 100 (D) | |
Legal Liability Paid to driver | 50 (E) | |
Compulsory Third Party Cover | 1,110 (F) | |
Net Premium | 6,505 (C + D + E + F) | Rs.6,505 (G) |
GST @ 18% | 18% * G | Rs.1,171 (H) |
Total premium | 7,676 (G + H) | Rs.7,676 |
Third-Party Liability Premium Rates (1-Year Policy)
Third-party car insurance is mandatory under the Motor Vehicles Act. The premium for a 1-year third-party policy varies based on the engine capacity of the vehicle.
Long-Term Third-Party Liability Premium Rates (3-Year Policy)
For new cars, a long-term third-party car insurance policy (3 years) is compulsory. The premium depends on the car’s engine capacity and is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
By using the car insurance calculator provided by Zurich Kotak General Insurance, you can get a quick and accurate estimate of your car insurance premium, helping you make an informed decision about your vehicle’s protection.
How to Calculate New Car Insurance Premium?
For a new car, the insurance premium is calculated using the vehicle’s invoice value, engine capacity, fuel type, and registration city. The Insured Declared Value (IDV) is set close to the car’s market price, which directly impacts the premium.
You can calculate the premium by entering dealer invoice details, selecting a comprehensive or third-party policy, choosing add-ons such as zero depreciation, and applying any discounts. Online calculators help you view accurate vehicle insurance quotes instantly.
How to Calculate Car Insurance Premium for Old and Used Cars?
For used or older cars, the premium is calculated based on the vehicle's depreciated market value. The car’s age, model, registration location, claim history, and No Claim Bonus (NCB) play a key role.
If the policy has expired, a vehicle inspection may be required before the premium calculation. Online premium calculators factor in depreciation slabs and NCB to give accurate estimates for vehicle insurance renewal or ownership transfer.
How to reduce car insurance premiums?
Car insurance premiums can be managed with careful planning and informed choices. By understanding the key factors that influence pricing, you can take practical steps to lower your overall insurance cost without compromising essential coverage.
● Choose a realistic IDV: Select an Insured Declared Value that reflects your car’s actual market worth. An unnecessarily high IDV increases your premium, while a very low IDV reduces claim value.
● Maintain your No Claim Bonus (NCB): Drive carefully and avoid small claims. Claim-free years help you earn and retain NCB, which lowers your renewal premium.
● Opt for a voluntary deductible: If you can afford a higher out-of-pocket amount during a claim, choosing a voluntary deductible can reduce your premium.
● Install approved anti-theft devices: Fitting certified security devices reduces the risk of theft and may qualify you for discounts.
● Avoid unnecessary add-ons: Choose only those add-ons that you genuinely need. Extra covers increase the overall cost.
Smart policy decisions help reduce vehicle insurance expenses without compromising essential coverage.
