With an adequate car insurance policy, you receive financial protection against theft or any damages caused to your vehicle. You must pay a specific amount in the name of premium to avail of the insurance policy. The benefits that you receive will highly depend on the terms and conditions of the policy.
When you’re purchasing car insurance, an important factor to consider is the premium amount payable. You can now calculate it beforehand with the help of a car insurance premium calculator available on the insurer’s website.
Several factors affect the premium rate of car insurance, such as:
- The type of insurance policy that you’ve chosen- third-party or comprehensive
- The Insured Declared Value (IDV) decides your premium
- City of registration
- Additional covers (add-ons), as you have to pay an extra premium for every add-on that you buy
- To calculate the age of the vehicle, the date of registration is required
- Make and model of the car; high-end cars and SUVs need you to shell out more money as they have a higher IDV
- The accumulated No Claim Bonus (NCB) that you receive for making a single claim through the policy term
How to Calculate the Car’s Premium?
Calculating the approximate premium of your car insurance is easy. All you need to do is visit your preferred insurer’s website, and drop in the details in the online car insurance premium calculator available right there. If your car is a used one, you will also need to provide details of your existing policy, any claims made in the past, or other details that your insurer requires you to fill in. Based on this information, the calculator tool will immediately provide the premium amount to you.
How to avail a good deal on the premium amount?
These online calculator tools prove to be extremely helpful, as you understand the estimated value and can hence make an informed decision. Using this tool, you can easily compare the plan that you’ve chosen with the policies offered by other insurance providers and then opt for the one that suits your requirements the best.
When you’re buying car insurance, make sure to compare different plans available to you, and don’t just settle for cheap car insurance, as a complete and sufficient coverage won’t be guaranteed in this case. While comparing, look for the coverage, claim settlement process, terms, and conditions, exclusions, etc. before you select a plan.
Having car insurance is essential and a necessity in today’s world as it provides financial protection if your vehicle gets stolen or damaged. If you don’t have an insurance policy, all of these expenses might put a hole in your pocket and disturb your budget.
When you finally buy car insurance online and pay the required premium amount, you can claim benefits during the policy term. These benefits will depend on the terms and conditions as mentioned in your policy documents. Then, get deeper into the policy wordings to check the exclusions and coverage you have been offered. This is a vital motor insurance document, and if you find out even a minor mistake in this document, for instance, your name or vehicle number, etc. is incorrect, you must get it rectified immediately, or it can cause problems later.