How Car Insurance Calculator Works

Posted on: Oct 7, 2024 | 3 mins | Written by: HDFC ERGO Team

How Car Insurance Calculator Works

Buying a car is a wonderful experience. A car becomes an integral part of your life and you treat it with a lot of love and care. To ensure it stays safe at all times, you need to buy a good car insurance policy. This is also needed because the Indian rules make it mandatory for every vehicle owner to have a motor insurance plan. While a car insurance plan is very beneficial, it can be expensive if you don't make the correct choices when purchasing the policy. How to find the best plan at the best rate? The answer is simple - use a car insurance premium calculator. Such calculators are very handy and allow you to locate the perfect policy. Read on to know more.

What is a car insurance premium calculator?

Let us begin by understanding what a car insurance premium calculator is. A premium calculator is a free, online tool that allows you to see the prices of all the available car insurance policies and then helps you to choose the most appropriate option. It is easy to use and shows effective results. It helps you to make an informed choice when you buy comprehensive insurance for your precious vehicle.

How does a car insurance calculator work?

A car insurance premium calculator is an online tool where you can get quotes for different car insurance plans. Here is how it works:

1. Enter the details like your name, phone number, etc.

2. Enter the details of your vehicle

3. Enter the details about your existing car insurance policy, if you are about to renew your coverage

4. Browse through the available options

5. Choose a policy that you like and make the payment

What are the benefits of a premium calculator?

Listed below are some of the most useful benefits of a car insurance premium calculator. Take a look and you will understand the significance of this very handy online tool:

1. It shows you the best plan

There are many good car insurance plans available from the top general insurance companies in India like HDFC Ergo. However, not every plan is suitable for you and your vehicle. It helps you to get a wider perspective when you look to make a choice. The premium calculator helps you do just that.

2. It helps you to compare the riders

Apart from showing you the available options, a premium calculator can also help compare the riders. This helps you to customise your plan and get the most effective coverage for yourself.

3. It helps you make the right decision

It is never a good idea to buy the first car insurance plan you come across. Whether you come across it online, or the vehicle dealer offers it to you when you buy the car, you should not accept it without comparing the options first. This is where a car insurance premium calculator comes in handy. When you compare, not only do you get to see the different rates, but you also get to compare the features. Even if you have a preferred insurer like HDFC Ergo, you can compare and see the different plans they have on offer. Large insurers like HDFC Ergo have a premium calculator on their website. You can compare the different plans, their features and their prices to see which one is the ideal one for you.

4. Helps you to plan your budget

Most importantly, car insurance premium calculators help you grasp the cost of a policy. This understanding is crucial for financial planning and budgeting. If the plan you select seems too costly, you can explore more affordable options or customize the coverage to strike a balance between good protection and a reasonable rate.

These are some of the best uses of a car insurance premium calculator. Make sure you use one when you are about to get a new motor insurance policy.

Points to remember when using a premium calculator

1. Only for comprehensive plans

The premium calculators only work for comprehensive plans, as the price of every third-party car insurance plan is fixed. The rate of third-party insurance is set by the IRDA and insurance companies cannot alter it, so you need not compare the different plans if you only wish to get third-party motor insurance.

2. Do not look at the price alone

As stated, there are many plans available from many insurance providers in India. However, every plan may not work for you. The cheapest plan, in all probability, won't do you any good. Therefore, do not base your decision on the cost of the plan alone. Look at the insurance provider’s reputation as well. Choose a good and healthy insurer like HDFC Ergo which offers not just comprehensive plans at great rates but also other value-added services like excellent customer support and quick claim redressals. You need the support of a good insurance provider if you want your motor insurance experience to be a positive one.

3. Use when renewing as well

Many people make the mistake of not using a premium calculator when renewing their car insurance coverage. If you are very happy with your existing car insurance plan, you can surely renew it. However, if you compare, you can find a better option. You can also understand whether or not you need all the existing riders or whether you need to customise the plan once again. Hence, try to run a comparison when you renew your motor insurance cover, as that can help you save money and also get well-rounded coverage.

Remember these handy tips and you will be able to get the best plan each time you make a purchase.

The final word

As you can see, it is very beneficial to calculate car insurance premium. An insurance calculator allows you to do so quickly and effortlessly. Keep all the points mentioned above in mind and get the best policy at the best rate to keep your precious car well-protected.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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