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What Is A Car Insurance Premium Calculator?
A car insurance premium calculator is a very helpful online tool that helps you to calculate and figure out the insurance premium quote for your car. It instantly calculates the premium amount considering details such as car’s make, model, RTO details, Insured Declared Value (IDV), etc.
Benefits Of A Car Insurance Calculator
- Using a car insurance calculator helps save time. It instantly tells the premium amount for your car.
- It compares the premium rates as well as other variables offered by multiple insurers and helps you choose the policy best suitable for your needs and demands.
- It offers you flexibility as there is no rush to make a decision and no external influence of an agent which may affect your choice.
How to Use Car Insurance Premium Calculator?
Every insurance provider has its own method of calculating the car insurance premium amount.
However, there are two major divisions namely, the premium calculation for used cars and premium calculation for new cars. You will be required to enter certain essential details in order to calculate the premium for your car insurance.
Essential vehicle details required for calculating the premium for used cars:
- Make, model, variant of vehicle
- Fuel type
- Existing car insurance policy details (if any)
- State and city of car registration
- No Claim Bonus (NCB) or previous claim file reports and details (if any)
The car insurance premium calculator will then estimate the premium amount based on the details provided so that you opt for the ideal car insurance policy.
Vehicle details required for calculating the premium for new cars:
- Car Manufacturer
- Year of manufacture
- Model of the car
- Variant of car
- Car’s registration state and city
Car insurance premium calculator will estimate the premium amount that you need to pay for your car insurance policy for your vehicle.
Factor Which Determine Car Insurance Premium
- Vehicle owner’s age: According to track records, insurers consider that vehicle-owners below the age of 25 years are more likely to be involved in a mishap or road accident. This is why individuals that aged between 18-25 years tend to pay a higher premium value for coverage that others.
- The fuel type required to run the vehicle: The premium for CNG (Compressed Natural Gas) fitted vehicles is higher than the premium charged for coverage of regular petrol/diesel run vehicles.
- Geographical location: Insurance providers also rate the premium according to the place where the insured car will be mostly driven. For instance, areas with a higher traffic density such as urban cities will be charged higher premium rates than rural locations or areas which have lower risks and traffic density.
- Insured Declared Value (IDV): Insured Declared Value is the maximum amount that an insurer pays to a policyholder in case of total loss or theft of the vehicle. The IDV depends on the brand, manufacturer's selling price, model of the vehicle, RTO details, etc. It affects the own damage premium of the insurance policy.
- Car’s Cubic capacity also helps determine the premium for the Own Damage cover.
- Car’s make, model and variant also affect the premium of your car’s insurance cover.
- Car’s manufacturing year: Older cars have lower IDV values which indicate that the premium for the vehicle will be comparatively lesser than new vehicles with relatively higher IDV values.
- No claim bonus (NCB): No claim bonus is a discount on the premium for Own damage cover when no claim was filed during the tenure of the chosen policy. This is provided to you for the number of years who did not make any insurance claim.
- ARAI Anti-theft discount: Vehicles that have ARAI (Automotive Research Association of India) approved anti-theft devices fitted are entitled to get 2.5% off on the premium rates.