Making a good decision is one of the most powerful and severely underrated acts in human history. While growing up, we all have been taught how to make calculated decisions. To take three steps back, assess and analyse your options, before taking one step forward.
It’s relevant even today, in all sectors of life. So while buying car insurance, why blindly go for any premium you are quoted, when you can actually calculate it using a car insurance calculator and make a well-informed choice?
Come, we will guide you through the entire process!
What is a Car Insurance Calculator?
It is basically an online tool that will help you calculate the premium amount for your car insurance, and land on the best-priced policy.
It also lets you adjust your IDV to the one that is suitable to your car’s make, model, and age. IDV - or Insured Declared Value - is the maximum coverage you get in case your car gets permanently lost due to theft or is irreparably damaged. Having the right IDV makes sure that you get the right market value of your car.
The calculator also helps you understand the factors that impact the premium of your car insurance. All you have to do is enter a few details about your car, such as the model, the registration number, etc, and you will get the premium details.
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Benefits of Using an Online Car Insurance Calculator
An online car insurance calculator has many advantages -
- It is a hassle-free tool that makes purchasing car insurance simple and reliable. Hence, you aren’t relying on anyone else’s opinion but your own.
- The best part is the convenience of using the calculator from anywhere, as it’s available online.
- It is a huge time saver, as you don’t have to do the calculations manually.
- It helps you make your own customizations, add different car insurance add-ons, and check the increase in premium. You can then choose the right mix of add-ons as per your need and budget.
Now that you know why you should use it, let’s talk about -
How to Use A Car Insurance Calculator?
It is an easy-to-use and self-explanatory tool. By following these few simple and easy steps, you will be able to get the premium details for your car.
- Step 1: Enter the following details
- Registration number
- Make and model
- Pin code
- Fuel type
- Registration date
- Place of registration, etc.
Once you click on ‘calculate’, you will be shown various quotes from different insurers.
Step 2: You can select the desired Insured Declared Value (IDV) for your car, and the type of coverage you need (Comprehensive/ Standalone Third Party or Standalone own-damage).
Step 3: Select add-ons you may need - to give your car that extra layer of protection.
That’s all! You will be shown the final premium for your car after you’ve entered the above details. And then you may go with the one that’s most suitable.
Please note: Above mentioned are the general steps that need to be followed, and they may vary across websites.
Factors That Affect Your Car Insurance Premiums
Age Of Your Car
Your car’s value depreciates the moment you take it out of the showroom, and it keeps on decreasing with time. This is why a new car is more valuable or expensive than an old car with the same configurations. As the value of your car decreases, the premium to keep it secured also decreases.
Make And Model Of Your Car
The exact make and model of your car determine how valuable your car is in the market at the moment. Different types of cars require different coverages. And the car insurance premium you need to pay varies accordingly.
For instance, if your car is expensive, then it will require higher coverage - which in turn will increase the premium amount.
Insured Declared Value (IDV)
As discussed earlier, IDV is the maximum value that you can claim, in case of any theft or total damage to your car. You can choose the IDV value - depending on your car’s age. And the premium will change proportionately with the coverage you opt for.
- Your Car’s Geographical Location
- The location where your car is registered and driven also plays an important role in calculating the premium. This is because -
- Some locations are considered accident-prone by insurers - based on their past claim data. If you happen to drive your car in such locations, then the premium might be on the higher side.
- If you stay in an urban area your car will be exposed to greater risks on main roads and traffic, which in turn may hike the premium cost. Conversely, if you are located in a rural area where the risk is less, the premiums will be lower.
Insurance companies offer different premiums for different fuel types that power the car. The premium for a petrol car will be lower as compared to one that runs on diesel or CNG, even if it’s of the same make and model. This is because the cost of maintenance of petrol cars is lower than others.
No Claim Bonus (NCB)
A no-claim bonus is essentially a discount the insurer gives you on your premiums - for not making a claim during a policy year. The NCB can range anywhere between 20% to 50%.
Car Insurance comes with many customization options that you can choose from - based on your specific needs. You can add additional riders or add-ons to your policy to enhance the scope of coverage. Your premiums may vary according to the type of add-on that you select.
- Engine Protector Add-On will cover any damage to the car's engine caused by issues such as water logging, oil spills, electrical or mechanical breakdowns, etc.
Roadside Assistance Add-On will help you get roadside assistance in case your vehicle breaks down in the middle of the road.
Note: Many other add-ons are available for you to customize your policy with.
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That was all about a Car Insurance Calculator and how it can simplify your life. There’s no need to follow the random car insurance quotes available on the internet when you can get the actual price tailored to your specific needs. We hope this article will help you make a good, calculated decision.