The insurance preferences and needs of every individual are as different as their choices in cars. To cater to these diversified needs and help you find suitable car insurance, insurance providers have a host of offerings. Once the insurance seeker identifies their insurance needs, they can enable a comparative cost analysis by using an online tool called the car insurance premium calculator.
Before understanding how to use the car insurance calculator, let us understand what it is in greater detail.
What is a Car Insurance Premium Calculator?
When you decide to get four-wheeler insurance, you are expected to pay a certain premium amount to your insurance provider. To calculate the amount of premium you will have to pay, you can use the car policy premium calculator.
This is a free tool available online that not only helps you calculate but also compare the premium quotes for varied vehicle insurance policies and coverages. To put it simply, the motor insurance premium calculator helps insurance seekers evaluate their insurance requirements and find suitable four-wheeler insurance within minutes simply at the click of a button.
How to Use the Car Insurance Premium Calculator?
It is extremely easy to use the online car policy premium calculator. The insurance seeker will only have to input their car’s information on the insurance provider’s website to get a quote.
To calculate the premium amount for a comprehensive car insurance policy, just visit the website of your insurance provider and follow the steps mentioned below: –
- Step 1: Input the registration number of your car. Some insurance companies might ask you to provide additional details such as the make and model of your car, the ex-showroom price, year of purchase, car registration city, etc. Keep your documents handy to save time and add the information asked in the relevant tabs.
- Step 2: If you have only been asked to add the registration number, then the software will fetch the details, and you only need to verify if they are correct. In instances where you have input the details yourself, you will have to verify them on your own.
- Step 3: After adding the information, you will be directed to the final page, where you need to select the IDV (Insured Declared Value) of your car and other policy details of your previous vehicle insurance along with your contact number. Once the relevant information has been provided, you can click on “Get Price”, and the screen will display the quote.
To understand how the car insurance premium is calculated, it is better to acquaint yourself with the formula. The formula that the online car insurance premium calculator India uses is:
Premium = own damage premium – (No Claim Bonus + discounts) + liability premium that is decided by the Insurance Regulatory and Development Authority of India (IRDAI).
Factors that Affect the Car Insurance Premium
When you invest in four-wheeler insurance, it is recommended that you seek as much information as possible about the variables involved to make an informed purchase. Following are some of the factors that play a role in determining your car insurance premium amount:
- Make and Model: The make and model of your car are important factors. Usually, the more expensive your car, the higher the premium amount. In addition to this, the fuel type of your car is also considered before providing a premium amount. Diesel cars, due to a higher market value, have a higher car insurance premium than petrol-run cars.
- Age of the Car: Newer cars, due to their higher market value, fetch a higher IDV. As a result, the car insurance premium for newer cars is higher than older cars.
- Location: The premium amount is higher in urban cities as compared to suburban areas as cities have a higher traffic density increasing the possibility of accidents.
- Discounts: Doctors, government employees, and defence personnel get a discount on their premium amount. Other discounts include if you have an anti-theft device installed in your car and the No Claim Bonus that is provided at the time of your vehicle insurance renewal.
Benefits of Car Insurance Premium Calculator India
The motor insurance premium calculator is curated to make the process of an insurance purchase easier and more knowledgeable. Here are some of the top benefits of using a car insurance calculator:
- Saves Time: Adequate research is essential prior to buying car insurance. To help you make informed decisions conveniently from the comfort of your home, you can use the car insurance premium calculator.
- Helps with Decision-Making: Conducting an online search helps with your investment decision without an external party influencing your purchase. Once you analyse your insurance needs, you can select a suitable policy that adequately secures your car.
- Enables Comparative Analysis: By using an online car insurance calculator, you can quickly and easily compare the policy rates of different insurance providers. This way, you can get the best policy for your car at a reasonable price.
In addition to the aforementioned, a car policy premium calculator helps you easily purchase insurance online. This is because the premium amount is an important factor influencing the purchase of your four-wheeler insurance.
To Conclude
Since purchasing car insurance is mandatory in India, you must find a reliable insurance provider that addresses your insurance needs and provides comprehensive protection for your car. To assist you in your insurance purchase journey, you can make use of the motor insurance premium calculator. Knowing about the factors that affect the premium of your four-wheeler insurance helps you make an informed decision while also saving time and money.
