A car insurance premium is a cost you pay to get financial coverage in a mishap involving your car. While you may seek exhaustive coverage, the premium cost of such a policy may also be too high. But how would you know if a policy is affordable to you or not before buying it? The answer is simple—by using a car insurance premium calculator. A car insurance premium calculator helps you know the premium using some basic information. Plus, the online car insurance premium calculator is free of cost, which means you do not have to pay anything to avail of its benefits. Today, we will look at how a car insurance premium calculator works and its advantages.
What is a car insurance premium calculator?
Car insurance premium calculator is an online tool that assists you in determining the cost of your policy. The calculator aids in figuring out the cost of various car insurancesuch as third party liability cover, own damage coverand comprehensive policy. You may also calculate the increased premium if you intend to purchase add-ons.
When calculating your premium, the online tool requires information such as the car’s age, fuel type, make and model, etc.
How to calculate a premium using a car insurance calculator?
Using a car insurance premium calculator is very simple. Just follow the steps mentionedbelow:
- Step 1: Share the details of your car including the manufacturer’s brand, make and model, fuel type and the model’s variant.
- Step 2: In the next step, choose the location where your car is registered.
- Step 3: Share the year of purchase of a car.
- Step 4: If you are renewing car insurance policy, don’t forget to mention the previous claim details, if any.
- Step 5: After you have provided the above information, share your personal information, such as your phone number and email address.
- Step 6: The insurer will send the premium quotation to your email address after you have sharedall the essentialdetails.
Benefits of using car insurance premium calculator
The car insurance calculator offers a host of benefits. Some of them are outlined below:
- The premium calculator for car insurance can assist you in determining the right policy as per your budget.
- The car insurance premium calculator assists you in comparing the premiums and the scope of coverage with various car insurance policy providers.
- The calculator eliminates the requirement of middlemen while allowing you to save a significant amount on the policy premium.
- The car insurance calculator can help you choose which add-ons to buy from a long list of options. Since add-ons raise the premium, it is important to know how they will affect your wallet ahead of time.
- The car insurance premium calculator can help you understand how different variables affect the cost of your car insurance policy.
Factors influencing the car insurance premium
- Noclaim bonus: Yourcar insurance policy premium will be lower if you have earned a no claim bonus on a claim-free policy year. For every claim-free year, the insurer provides you with an NCB reward. You can utilise this NCB and get up to 50% discount on your insurance cost.
- Year of manufacturing: It is cheaper to get car insurance for older cars. This is because older cars have lost most of their valuation due to depreciation, and their insured declared value is substantially lower than the new ones.
- Fuel type: The amount you need to spend to maintain your car significantly depends on the fuel type. Diesel cars require higher maintenance than petrol vehicles. Given this, the premium is also higher for diesel cars.
- Voluntary deductible: The higher the deductible, the lower will be your car insurance premium. However, before you choose the deductible, bear in mind that it impacts you directly at the time of claim settlement.
- Make and model: The cars that are equipped with high-end accessories are a bit expensive to insure. This is because such accessories and technologies are costlyand difficult to come by, and insuring them necessitates a significant investment.
- Place of registration: The premium for car insurance depends upon the city’s population density. The higher the traffic density on the road, the greater the risk of an accident. Therefore, the cost of car policy premium is higher in metropolitan cities compared to other places.
To sum it up
The car insurance premium calculator is the most useful tool for understanding how vehicle insurance premiums are calculated. This tool is highly recommended because it lets you know the premium amount beforehand and aids in making an informed decision.
