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How to Calculate Your Standalone Own-damage Car Insurance Policy Premium?

By Juhi Walia
20 October 2022, 2:58 PM

Calculating your own-damage car insurance policy premium can be a simple process if you know how to get the information you need from your insurer and put it all together on an online calculator. This guide provides an overview of how to figure out the best option for your situation so you can perform it easily.

The first thing you need to do to calculate your standalone own-damage car insurance policy premium is to determine the value of your car. This will determine how much your policy premium should be based on the likelihood of filing a claim and paying for repairs out of pocket. Own-damage car insurance policies are car insurance policies that cover only the vehicle's owner in the event of an accident, irrespective of whether he or another person was driving the car.

Here are the steps you need to take to calculate your own-damage car insurance policy premium effectively to plan accordingly and avoid unpleasant surprises.

How Can I Calculate the Premium for Own-damage Car Insurance Policy?

Own-damage car insurance is a policy that covers damages caused by the insured vehicle. Typically, it doesn't cover damages incurred by third parties, which pays for other people's property damage, injuries and medical bills in the event of an accident. You can calculate your standalone own-damage car insurance premium by adding the cost of your standalone own-damage premium and the premium of your add-on covers. 

There are a few things to consider when it comes to calculating your own-damage premium. These are mentioned below:

  • The geographical zone you reside in.
  • The type, age, make and model of your vehicle.
  • The cubic capacity of your engine.
  • IDV or the insured declared value of your vehicle.

Premium Cost = Standalone Own-Damage Premium – (no-claim bonus (NCB) + discounts applicable) + premium cost of add-on covers

What are the Factors Affecting the Standalone Own-damage Car Insurance Premium?

The following factors will have an impact on the amount of your car insurance premium: 

Insured Declared Value (IDV)

The insured declared value in car insurance is the amount the insured feels their vehicle is worth. The higher your IDV, the higher your policy premium. Choosing an IDV requires research and understanding insurance policies. Even though insurers allow you to make IDV changes, you cannot up your IDV beyond a limit specified by the insurer.

Make and Model

If you want a standalone car insurance for your make and model, the number one tip is to research what you can afford. It can be tempting to compare rates on different sites offering coverage at a slightly lower price, but make sure that the provider is trustworthy and reliable before purchasing. Suppose a company provides coverage with only liability insurance or offers it at too low rates. In that case, they may not have a valid proof of financial responsibility in the event of an accident.

Kilometres Travelled

The annual insurance premium for your standalone own-damage car insurance policy is calculated by multiplying your total kilometres driven in the past year by the rate of uninsured losses on your type of vehicle as outlined in the Insurance Act. 

Manufacturing Year

A standalone own-damage car insurance policy is designed for the self-employed or small business owners with a fleet of cars or vehicles on their property. Owners must have no other vehicle insurance and cannot afford a commercial policy. If you're eligible, this option offers lower rates than a typical personal policy covering rental cars or borrowed vehicles.

Age of the Car Owner

Age is the most important factor for calculating the standalone own-damage car insurance premium. Generally, the younger the car owner, the higher the premium for their standalone own-damage car insurance policy. However, older people with a high net worth and good driving record could be eligible for very low premiums.

Geographical Location

The insurance industry has its unique nomenclature, and this is where a lot of confusion stems from when it comes to purchasing standalone own-damage car insurance policies. The important thing to know about the geographical location is that this information determines the risk factor used in your premium calculations. For example, if you live in an area with high theft and vandalism rates, your premium will be higher than for someone who lives in a low-risk area.


When buying a car from this dealership, please keep in mind that any car accessories installed or built into the car that are either electrical or electronic such as Stereo, CNG units, etc., and fitted in the car from outside the company will not be included in the selling price of the car. The car owner would need to fork over an additional fee to pay for that coverage.

No-claim Bonus (NCB)

Your premium is based on a few different factors. One of these is your NCB, which means the number of years you haven't made a claim. Generally, an insurance company will discount your premium by 5% for every year of NCB you have (and, in some cases, up to 100%).

Read more - How to Calculate NCB for Car Insurance

What to Consider When Purchasing Standalone Own-Damage Car Insurance?

There are many factors that can affect the price of a standalone own-damage car insurance policy. Here's what you should know:

Compare Policies

It is important to compare policies before choosing one. It is important to know what each company offers and compare prices. For example, some companies charge higher premiums for drivers under 25 years old, while others do not. Some companies also offer lower premiums if they discover you were involved in an accident on your property. Before making a decision, determine which factors will make the most difference when determining your premiums.

Read more - 9 Car Insurance Companies in India

Read Terms and Conditions

Once you choose a plan for your own-damage car insurance, read the terms and conditions carefully to understand what's covered. Review every detail carefully, so there aren't any surprises in case something happens.

Understand Options

If you have questions about your coverage options for your standalone car insurance policy or need more help, don't hesitate to contact your provider or agent directly. Most reputable providers offer 24/7 customer service by phone or online chat. 

Network Garages

When looking at this factor, ask yourself how many times a year you go to the garage for maintenance. If you go once a year, it might not matter whether or not your garage is in network. However, if you go several times a year, having an in-network garage could save you money. 

Add-on Covers

The final thing to consider is the add-on covers offered in your standalone own-damage car insurance policy. Find out if there are car insurance add-ons you're interested in, such as a guaranteed acceptance program, roadside assistance, personal injury protection, and supplemental liability coverages. Keep in mind that these features will likely increase your premium. Make sure to compare costs between various plans and choose the best option!

Check Insurance Provider's Reputation

One way to tell whether or not a provider has competitive rates is by checking their reputation for your standalone own-damage car insurance policy. A company with a low rate may only be offering inexpensive plans because they lack credibility. That said, stay away from fly-by-night organizations and those without accreditation or complaint history information available.


As you can see, a number of factors will affect the premium of your own-damage car insurance policy. The cost of insuring a vehicle depends on the type and make of the car, as well as individual variables such as where you live, how old you are, your driving record, and whether or not you have taken any driving courses.


1. Is it mandatory to purchase own-damage car insurance for your vehicle?

No, it is not compulsory to purchase standalone own damage insurance as long as you have a third party or comprehensive insurance.

2. Can you get add-ons to your standalone damage policy?

Yes, you can have add-ons such as zero depreciation cover, roadside assistance etc., to your standalone damage policy.

3. How is the premium of your standalone damage policy calculated?

It is calculated based on your location, IDV, year of purchasing a vehicle, and the type of vehicle.

4. Is the own-damage cover a part of your basic car insurance?

No, your own-damage cover is not a part of your basic car insurance policy.

5. How can I purchase a standalone own damage insurance policy?

You can do so conveniently by navigating your insurer's website or calling its toll-free number. 

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