How To Calculate Car Insurance Premium Using Premium Calculator?

Published On Apr 05, 2021 11:00 AM By InsuranceDekho

A car insurance policy is mandatory for the owners of a car. Therefore, each car owner purchases a car insurance policy. But many do not know how to measure the premium for the scheme. In these cases, a premium car insurance calculator helps. The car premium calculator helps calculate the insurance premium based on the car data.

Car insurance premium calculator is an online tool which helps you calculate the premium of your car insurance policy. It gives you customised results based on the information provided by you. It is wise to always calculate the premium and check the premiums of different car insurance policies available before purchasing a car insurance policy.

How To Calculate Car Insurance Premium Using Premium Calculator?

You can calculate the insurance premium for your car at InsuranceDekho by following the below-mentioned steps - 

  1. Visit InsuranceDekho and click on the ‘Car’ tab.
  2. Enter your car’s registration number. In case you do not know the registration number click on ‘Don’t know your car number?’ option.
  3. Select the Make, Model, Variant, Fuel Type and City of Registration of your car.
  4. Car insurance premiums of different plans offered by the top insurers in India will be displayed to you.

What Factors Affect My Car Insurance Premium?

Some details are to be provided in the car insurance calculator in India in order to calculate the premium of a car insurance policy. The following descriptions are:

  • The Car Manufacturer, Standard And Version: The car manufacturer, model and version decide the premium. The prime information needed to calculate the premium is therefore car details.
  • Registration Year: The year of registration is also necessary in order to calculate the value of the insured declared (IDV). IDV calculation is important for the premium calculation.
  • Details Of Existing Insurance: If the car insurance policy is renewed or a new policy is impacted on a used car that may include existing car insurance information.
  • Car Number Of Registration: The registration number must also identify the place to purchase the scheme. Premiums vary from place to place, so the correct premium is needed for the calculation of the car's position.
  • Type Of Policy: There are three types of insurance policies: Third party car insurance, Comprehensive and Stand-alone damages policy. For the various kinds of plans, Premium is different. The calculator should also also provide the form of policy needed.
  •  History of Claims: If you renew a current car insurance policy, this is important. The past of claims decides whether there is no applicable discount for claims. The rebate is used to reduce the premium and is important in the estimation of the premium.

Benefits of Using Car Insurance Premium Calculator

In calculating the cost for the insurance plan the car insurance calculator helps. The package lists the respective price rates for the plan available. This will help you find the right strategy for your budget. The calculator also has other advantages:

  1. With their benefits and premium comparison you get the list of available policies. The specifics at your fingertips are easy to compare.
  2.  You will get the premium calculation in advance
  3. The premium information helps you make an informed decision.

The Elements of The Premium For Car Insurance

Although the premium calculator for car insurance helps in the calculation of the premium for a car insurance policy, you should know the premium components. There are three components of an car insurance policy premium -

  • Premium For Third Party: This fee applies to the obligatory coverage by a third party issued by the car insurance policy. The Insurance Regulatory and Development Authority (IRDAI sets the premium for all insurers). The premium rate depends on the car's engine power. Every year, IRDAI shall also check the premium rate and make adjustments.

  • Premium Property Loss: Danger suffered by the car is also included with robust car insurance plans. This coverage is called a coverage for own damages and a fee for this protection is paid. The premium rate depends on the declared IDV of the car and differs between policies.
  • Premium For Covering Personal Accidents: Many comprehensive and third-party car insurance plans have an integrated personal injury cover. With sudden death and permanent disability, this coverage pays a benefit. They also charge a supplementary premium for this cover.

A premium of a car insurance policy is a blend of a third party premium, a premium for own damages and personal accident cover.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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