Get a Clear Picture of Your Car Insurance Costs with a Premium Calculator
Buying a car has become a milestone in everybody’s life. The next step after you buy the car is to purchase a car insurance policy. With the advent of technology, you do not have to step out of the house to buy a car insurance policy anymore. You can buy it online after comparing the various policies available in the market. A car insurance premium calculator can help you with this. You can compare various insurance plans and choose one that suits your coverage requirements and your budget.
What is a Car Insurance Premium Calculator?
A car insurance calculator is a free online tool that helps you calculate the insurance premium cost for your car. This easy-to-use tool helps you understand the various factors that affect the insurance cost. All you have to do is fill in details such as the car registration number and the insurance calculator will generate the insurance quote for you. You can customise this further with add-on covers and your accumulated no-claim bonus.
Benefits of Car Insurance Premium Calculator
The car insurance premium calculator provides you with instant premium quotes on both third-party and comprehensive insurance policies. Some benefits of using a car insurance calculator online are:
- Premium calculation: It makes the process of premium estimation convenient and easy. It gives an estimated quota based on the specifications of the car and the type of coverage chosen.
- Free and easy to use: Another benefit of using the car insurance calculator is that it is absolutely free. You can use it however many times you want. There are no hidden charges and commissions. You can clearly see the break-up of the premium amount.
- Saves time: Using the online car insurance premium calculator saves time as it instantly tells the premium cost for your car provided by various insurers available in the market.
- Finding the right add-on: You can use it to compare various premium rates and choose the best car insurance plan with add-on covers like bumper to bumper insurance that best suits your requirements and budget.
- Works for both old and new cars: You can get premium quotes for both old as well as new cars. There will be extra information that has to be filled in case of old cars.
- Choosing the best policy: It compares the insurance premium rates as well as other variables offered by various insurance companies and helps you choose an insurance policy that best suits your demands and needs. It also provides you with flexibility as there is no rush to make a decision and you can do it in your own time. There is no external influence like an agent to affect your decision.
- Customised according to your requirements: The car insurance premium calculator does not give a generic overview. It is based on your insurance needs and specific details.You can also see the discount that you can get with the no-claim bonus that you have accrued. You will therefore be able to find out the exact premium that you will be required to pay.
Details Required for Calculating Car Insurance Premium Calculator
The following details have to be filled in the car insurance premium calculator in order to get a premium estimation quote-
- Car model
- Year of car registration
- RTO
- Car variant
- Fuel type
- Manufacturer
- No claim bonus (NCB) discount
- Claim details
How is Car Insurance Premium Calculated?
The simple formula that is used by insurers to calculate premiums is-
Car insurance premium = Own damage premium -(NCB+discounts if any)+Third Party Liability Premium that is fixed by the IRDAI.
How to Use a Car Insurance Premium Calculator Online?
The car insurance premium calculator allows you to figure out the accurate premium amount instantly. To use the insurance premium calculator, all you need to do is-
- Go to the insurance company’s website from whom you want to buy the car insurance policy. Alternatively, you can also visit online marketplaces to compare various car insurance premiums of various insurers.
- Key in details such as car registration number, age, manufacturing year, model, make, variant, etc.
- Furnish the claim history in case you are renewing an existing insurance policy.
- Select add-ons if you wish
- The final premium amount will be calculated and displayed to you. It also shows the premium pre and post-GST addition.
How Is Insurance Premium Calculated For a New Car?
The new car insurance premium calculator offers a listing of top insurance companies and their product listing. This provides a new four-wheeler owner guidance and helps in narrowing down the perfect insurance policy for his/her car. The information that you have to provide are:
- Car manufacturer’s name
- Model of the car
- Year of manufacture
- Personal information of the car owner
- State of registration of the car
How Is Insurance Premium For Used Cars?
Every insurer has its own set of parameters to determine the premium. That being said, the factors that are taken into account by most car insurance companies are:
- Type of car
- Details of the existing car insurance
- Fuel type of the car
- Details pertaining to change in ownership
- Claim details, if any
How to Reduce Car Insurance Premiums?
- The No Claim Bonus (NCB) is a simple way to reduce your premium progressively. For example, consider the scenario below wherein the premium has reduced gradually due to NCB.
- You can also reduce the premium by becoming a member of the Automobile Association Of India (AAI) and by installing safety features such as locking and anti-theft devices in the car.
- Remove any add-on covers that are unnecessary which might increase your premium amount.
- Also, make sure that the insured declared value of your car is evaluated correctly before the insurance policy gets issued. By doing this, you can make sure that the right premium amount is charged and that the claim process is hassle-free.
- Choose your car carefully based on your requirements. Do not buy a two-seater if you have a family with two children. Remember that the cubic capacity and the showroom price also add to the car insurance premium amount.
- Opt for voluntary deductibles when you buy car insurance. It is a great way to lower the premium amount. In case you are confident with your driving skills, then you can opt for a higher voluntary deductible amount. This will bring the premium amount down drastically. However, make sure that you have the capacity to pay the voluntary deductible amount in case of an accident.
- If you have accrued NCB for the past 5-6 years and you are planning to buy a new car, you can cut down on premiums drastically by transferring the NCB from your old car insurance policy to the new one.
Make sure you do proper research before you narrow in on an insurance policy. Also, make use of the free car insurance premium calculator that will help you save time by providing premium quote estimates that aid you in making the right decision.
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