Having a car is no more just a status symbol. It has become a necessity. Along with the car, having an insurance policy to cover the car is also important. Car insurance is mandatory by law and it is important to have your car secured with a good insurance policy. But before that, it is important that you know how much premium you will have to pay for your car’s insurance.
Calculating car insurance premium has become way easier with online tools that allow you to calculate the insurance premium online. Most of the companies have such tools on their official websites. This helps the customer to get quotes for their car insurance policy and the premium amount they will have to pay.
Calculating car insurance premium before you buy an insurance premium helps in taking a decision about the right policy and makes the process easy for you. You can compare various options and choose from the best insurance plans that are available.
How to Calculate Car Insurance Premium Online
Car insurance premium calculator helps in getting a lot of variations in premiums as per the requirement of the car owner. For calculating the accurate amount of car insurance premium follow these steps:
#1. Go to the car insurance premium calculator page of the company website to calculate car insurance premium.
#2. Fill in the details like date of registration, policyholders name, contact details and address, car details, policy start date and some standard details about the car to be insured.
#3. These details include car manufacturer’s name, model number, manufacturing year, fuel type, registration date, etc.
#4. Click on ‘Calculate premium’ and you will get a quote about the premium you will have to pay for your car’s insurance.
It is always suggested to compare different car insurance policies by using the car insurance premium calculator. By comparing premium rates, you can find the most favorable insurance policy for yourself. Remember, more extensive the coverage, more will be the premium rate.
Factors to Consider While Calculating Car Insurance Premium
Whenever car insurance premium is calculated, the factors which play a crucial role in the calculation of car insurance premium are as follows:
- Car model: High-end cars are always charged a higher premium as compared to budgeted cars. High-end cars have high maintenance engines and thus are charged higher premiums.
- Area of insurance: The density of the traffic also decides the premium rates. In urban areas with high traffic, the car is insured usually at a higher premium rate as compared to rural areas. Also, theft is considered to be higher in number in urban areas, which directly affects the car insurance.
- Manufacturing year of the car: Older cars have lesser IDV (Insured Declared Value) and the lesser the IDV, less will be the insurance premium.
- Discounts: The cost of the policy depends upon discounts availed such as No Claim Bonus.
You can reduce the premium of your car insurance premium by becoming a member of the Automobile Association of India (AAI). You can also add certified anti-theft and locking devices in your car to increase safety and reduce car insurance premium.
Always get your vehicle’s IDV recorded correctly to ensure that you are not charged a higher premium. You can also drop add-on covers which are not necessary as they increase the cost of car insurance premium.
- Also Read | Does Your Car Insurance Cover Everything?
Whichever policy you choose, it is important to make an informed choice. Understand the inclusions and exclusions of the policy in detail before making the payment. Contact the insurance provider on call or via email to get all your insurance-related doubts cleared.