Searching for a Car Insurance Policy? Don’t buy one without Using a Car Insurance Calculator!
Today, owning a car is no longer a luxury, but a necessity. Irregular public transport, congested buses and trains, and the freedom that comes with a car — these are a few top benefits of car ownership. When you own a car in India, by law, it’s mandatory to have car insurance. It provides you with a financial safeguard in the unfortunate case you meet with an accident on the road, or you damage others’ property.
Generally, car owners make the huge mistake of not giving a second thought to the car insurance they pick. They just choose the one recommended by the car dealership. This is a blunder as a generic car insurance policy doesn’t provide you with adequate coverage nor do you get the most value for your money.
This is where an online Car Insurance Premium Calculator comes into the picture.
What is the Online Premium Calculator?
● This is a dynamic tool that is available online. Most motor insurance companies have a premium calculator on their portal.
● By using this tool, you can get a quote for the right car insurance policies from several agencies. Along with the quote, you get to see the premium value and benefits offered by different car insurance policies. This helps you compare and pick the best one that suits your specific needs.
● One of the biggest benefits of the insurance calculator is that instead of just choosing the first one you come across, you can compare and evaluate, thereby getting the most value for your money.
How is the Car Insurance Premium Calculated?
The premium is the amount you have to pay every year to enjoy the benefits of financial coverage provided by the car insurance policy.
Here’s the formula used,
Premium = Own Damage Premium — (NCB + discounts) + Liability Premium + Cost of Add-ons
Here, NCB denotes the No Claim Bonus
Liability Premium is determined by the IRDA (Insurance Regulatory and Development Authority of India)
Why Use the Auto Insurance Premium Calculator, before Buying a Car Insurance Policy?
● You get to make an informed decision, as you get to know all the products available in the market.
● Simplifies the overall process and makes it convenient.
● You get an overall view of the all the plans available before you.
● You can compare rates and benefits quickly, helping you land the best of deals!
● You need to take a decision in haste or under the influences of insurance agents. You make the right decisions by yourself.
How to Use the Auto Insurance Premium Calculator Tool?
Using the car insurance calculator is quite easy. All you have to do is enter your vehicle’s make and the purchase date. You then get a list of quotes from leading insurance companies in the market.
Here are a few factors to consider while using the premium calculator:
- Set your IDV (Insurance Declared Value) — Simply put, this is the maximum value you can claim for your vehicle in case of an accident or mishap, under the comprehensive car insurance cover. The IDV plays an important role in determining the premium you pay.
Generally, the IDV = Ex-showroom price of the vehicle + cost of any add-on accessories — depreciation value. Depending on the age of your car, the depreciation value can be anywhere from 5–50% of the ex-showroom price.
- Choose the Add-on Covers that you require — These are the extra benefits that you expect from your insurance policy. Some of the popular add-on covers include 24 x 7 roadside assistance, passenger cover, zero depreciation, externally fitted CNG kit and more.
- Compare & Evaluate — The next step is to compare and evaluate the quotes from different insurance providers. While comparing don’t just look at the premiums. Instead, also consider the benefits and coverage offered by each policy.
Finally, Pick the Best Deal — Choose the right car insurance policy that offers the most value for your money.
