Having a car insurance is mandatory but with the choices available for a car insurance the customer is bound to get confused. It is important to know the amount of insurance that you will need to pay and for this all insurance companies and other websites provide a car insurance calculator. With the help of this calculator, you will be able to calculate the premium you will need to pay for the car and also compare premiums charged by different insurance companies. Using the calculator, any insured can evaluate the different policies and then buy the one which will suit their requirements in the best possible way.
Advantages of a Car Insurance Calculator
- Helps to compare insurance premiums of different companies and decide on the best one
- The process to buy insurance becomes easier after comparing and knowing the premium
- There is no influence of agents and the insured can take a well-informed decision
- You can analyse how different variables have an impact on the premium
How to Use the Calculator?
A car insurance calculator essentially is an online tool that enables you to calculate the premium you will need to pay for your car after filling in some basic information. As per the requirements, the calculators provide an individual with different variations depending on what they require. To use one of these calculators some basic information like card details, date of registration, coverage details and policy date etc. needs to be entered. With a few clicks, the premium of different policies is available on the screen. Comparing two or more policies is the best way to get a good policy as this helps you get a comprehensive coverage at the best rate. As the coverage gets more extensive, the premium increases and thus, sometimes a comparison helps you get a good deal.
Different insurance companies have different calculators using a different method. The method used to calculate premium for a user and a new car also varies. For a new car, the insured needs to provide details like model of the car, name of the manufacturer, state of registration, year of manufacture along with some details of the individual. For using the car insurance calculator, details like fuel type, car type, details of existing car insurance policy, registration number, details of change in ownership and a report of claims in the previous year have to be filled in.
Factors Affecting the Premium
There are some basic factors which affect the car insurance premium. Some of them are:
- Car Details: The model, variant and make of the car have an impact on the car insurance premium and this is why the luxury cars have higher premiums.
- Age and Gender: Younger people have to pay a higher premium as insurance companies take this segment to be more likely to be involved in accidents.
- Place of Registration: The place where the car is insured also makes a difference in the premium. One of the main reasons behind this is the density of traffic.
- Year of Manufacture: As the car gets older, its Insured Declared value reduces and this reduces the premium of the car.
- Fuel type: A CNG car has a higher premium when compared to a petrol or diesel variant.
- Deducible: The amount of deductible in a policy is the minimum amount the insured will pay in case of a claim. The higher the deductible is the premium reduces.
- No Claim Bonus: The insured gets a benefit in the form of a discount for every no claim year. This amount can vary and is transferable to another policy or car.
- Features: The insured can get a discount on the premium of the policy if the car has some features like an anti-theft device.
While buying a car, getting your car insured is mandatory and each car insurance policy comes with a tenure. The car insurance calculator is a helpful device while buying insurance. It not only helps to calculate the premium but also helps to compare different policies and taking a well-informed decision. The car insurance calculator is a helpful tool as this will help you buy the car insurance policy as per your specifications.