The purchase of a car instils a sense of pride and comfort in you. But, how do you protect your prized possession from any damages? You can do so by getting motor car insurance. The insurance policy will protect your car and save you from the financial liability of taking care of the damages incurred. However, from the wide range of policies available, it can be difficult for you to select one, especially in terms of the premium outflow and cost-efficiency of each insurance policy. Hence, in such scenarios, you can use a car insurance calculator.
Car insurance in India
In India, it is compulsory to buy car insurance for all cars plying on the roads. The Indian Motor Vehicles Act, 1988, makes it mandatory to have at least a third-party insurance policy for your car. Third-party insurance covers only third-party liabilities arising from the damage, injury and/or death of a third party caused by your car. However, this does not cover damages to the car and injuries caused to you in the accident.
Alternatively, you can opt for a comprehensive car insurance policy that covers damages to the car, theft of the car, personal accident benefits for the owner-driver, along with third-party liabilities. You can further enhance your coverage with multiple add-ons. However, add-ons increase your premium outflow.
A car insurance premium calculator will help you determine the exact premium you will have to pay for the nature and extent of coverage you want to buy for your car.
What is a car insurance calculator?
A car insurance calculator is an online tool used by buyers of car insurance for calculating the exact premium outflow for a car insurance product. Simply input the necessary information, and the calculator will display the amount of premium you need to pay to get the coverage of your choice.
With insurance premium calculators, you can compare premium amounts and insurance quotes from different insurance companies. When you can compare the quotes, you can select the insurance plan that is ideal for you. It is an effective way of selecting a plan that won’t be a financial burden on you.
Just like selecting the policy becomes easy with an insurance calculator, using the car insurance calculator is also easy.
How to use car insurance calculator?
With the help of car insurance calculator, you can figure out the premium amounts you will have to pay depending on the information you provide. The car insurance calculator provides its customers with different variations regarding the premium rates as per the requirements. To get an exact figure on the insurance premium, a customer will need to provide the specific details that include:
- Car Details – registration number, registration year, make and model, etc.
- Personal details – name, mobile number, date of birth, identification details, address details, etc.
- Type of coverage needed – third-party, comprehensive, etc.
- List of add-ons
- Applicable discounts – No Claim Bonus, etc.
- Existing policy details – if needed
To find a good policy, comparing the insurance quotes between them is a smooth way of selecting one. The car policy premium rates will be high depending on the amount of coverage that your policy provides. Every insurance company uses its own method of calculating the insurance price.
- Premium calculator for new cars: To calculate the premium quotes for a new car, you will have to fill the details about vehicle manufacturer’s name, model, year of make, registration state etc. along with your personal details. The premium calculator will take this information and provides the best deal.
- Premium calculator for used cars: To calculate the premium for a used car, you will need to provide details like type of car, fuel type, existing car insurance, policy details, and previous claim reports. After providing all of this information, the premium calculator for a used car will provide the best deal available.
The calculation of a car insurance premium is done based on the following formula:
Own damage premium – (depreciation +NCB) + Liability premium
While this formula helps in calculating the premium, the different factors that affect the premiums on car insurance are:
- Cubic Capacity
- NCB (No Claim Bonus)
- Manufacturing year
- Age of policyholder
- Type of fuel
- Car model and make
With all these factors and the wide range of car insurance companies available, the process of getting a car insurance policy can seem confusing. This is where an online car insurance calculator comes handy.
Benefits of using a car insurance calculator
- You have all the options you are eligible for available in front of you.
- Since all the calculations are automated, the amount of time spent will be less.
- It is a reliable and convenient way of finding the best option which suits their needs and requirements.
- No bias is involved in calculations, making the priority providing you with the best option.
- You can use the online car insurance calculator anywhere, removing the need for dealing with agents.
- The calculator also showcases different factors which are used for comparing policies.
- You have the ability to customize the variables in the policy. This will help you understand which premium payment mode will be suitable for you.
Getting a car insurance policy can save you and your car from damages. With the different policies available in the market, selecting one can be difficult. To make the process easy, you can use the car insurance calculator. After providing the basic information regarding your car and policy, you can get the insurance quotes for the best policy available for you. Using the car insurance calculator makes the process of selecting a policy easy for you.