Car Insurance Premium Calculator
Economy / Hatchback
Sedan
SUV / Pickup
Luxury / Sports Car
0 Years (0%)
1 Year (10%)
2 Years (20%)
3 Years (30%)
4 Years (40%)
5+ Years (50%)
Third Party Only (Liability)
Standard Comprehensive
Premium Comprehensive (with Add-ons)
Estimated Annual Premium
How Car Insurance Premiums are Calculated
Understanding how your car insurance premium is determined can help you find ways to lower your costs. While every provider uses a unique proprietary algorithm, most calculations rely on a specific set of core risk factors.
Key Factors Affecting Your Rate:
- Vehicle Value and Type: Expensive cars cost more to repair or replace. High-performance sports cars often carry higher premiums due to increased accident risks.
- Driver Age: Statistically, drivers under 25 and over 70 are viewed as higher risk, which typically results in higher premiums.
- No Claims Discount (NCD): This is a reward for safe driving. For every year you don't make a claim, your insurer provides a percentage discount, often up to 50% after five years.
- Coverage Type: Third-party insurance is the legal minimum and usually the cheapest, while Comprehensive coverage protects your own vehicle but comes at a higher price.
Example Scenarios
| Profile | Car Value | Est. Premium |
|---|---|---|
| New Driver, Economy Car | $15,000 | $900 – $1,200 |
| Experienced Driver (5yr NCD), SUV | $40,000 | $800 – $1,100 |
Tips to Lower Your Premium
If your calculated estimate is higher than expected, consider increasing your voluntary excess (deductible), improving vehicle security with an approved alarm system, or opting for a higher NCD by avoiding small claims.