How to Use Car Insurance Premium Calculator?

Posted on: Sep 17, 2019 | 3 mins | Written by: HDFC ERGO Team

How to Use Car Insurance Premium Calculator?

Car insurance provides financial protection in case your vehicle is stolen or damaged. The policyholder pays a premium for the insurance policy. The premium payment entitles the policyholder to claim benefits during the policy period. The benefits will depend on the policy terms and conditions.

When buying car insurance , one of the key factors to consider is the premium amount. It is now possible to calculate the premium beforehand using online calculators available on the websites of leading insurance companies.

Factors Affecting the Premium Rate

There are several factors that determine the value of car insurance which are as below.

Type of insurance – third party car insurance or comprehensive insurance policy.

Model, make, and variant of the car – You need to shell out more by way of premium for high-end cars and SUVs.

Insured Declared Value (IDV)

Date of registration (to calculate the age of the vehicle)

Cubic capacity of the car

Registration city

No claim bonus – a benefit which you get for not claiming under the expiring policy

Add-on covers – you need to pay an additional premium for each add-on cover you buy.

Calculating the Car’s Premium

It is very easy to calculate your car’s approximate premium. You need to simply visit the website of the insurers you are considering for your car insurance and input the details in the online calculators available there.

For used cars, you may also need to provide details of the existing policy, any past claims and any other relevant details desired by the insurer.

The calculator tool instantly provides the premium amount based on these details (as relevant to every insurer).

Car Insurance Premium Calculation for New Cars

As mentioned above, there are some fixed factors based on which the car insurance premium is determined. For a new car, the main factor assessed is the make and model of the vehicle. If the new car is very expensive and has many unique features, the premium will go up.

Car Insurance Premium Calculation for Used Cars

For used cars, the make and model number is definitely assessed. Along with this, other important factors such as the fuel type and the registration date are taken into consideration. Many used car owners opt for a third-party plan, so this reduces the premium amount considerably.

Benefits of Car Insurance Premium Calculator

• To begin with, the premium calculator is extremely easy to use and it only takes a few minutes to get the results, which are very accurate.

• The car insurance premium calculator is free to use and you don't have to pay any extra money to use it.

• The car insurance premium calculator tells you exactly what your premium liability will be, well in advance. This allows you to plan your finances and get an affordable car insurance policy which you can maintain with ease.

FAQs

1. Will I find a car insurance premium calculator on my insurance provider’s website?

Most of the present-day insurance providers have this tool on their website, so you should be able to find it on your insurer’s portal as well. If you don't find it, you can visit any aggregator website and use the calculator there.

2. Can I check the premium for long-term coverage?

Yes, you can also check the premium for a long-term car insurance policy on any online car insurance calculator tool.

3. Is it expensive to use an online car insurance calculator?

There is no charge added for using the online car insurance calculator tool. This service is available free of cost, so you don't have to worry about any additional expenses when calculating the premium of your car insurance policy.

4. How accurate are the results of an online car insurance premium calculator?

The car insurance premium calculator offers precise results. However, the final amount you pay may depend on factors such as riders, type of coverage, etc so you may notice a slight discrepancy in the result and the actual amount you pay as your car insurance premium.

Conclusion

Online calculator tools help consumers make an informed choice about their car insurance plans. You can use it to compare different plans and then choose the one best suited for you. Comparing different plans can help you assess the market and the policies available for you. Based on the premium amount generated from online calculators, you can decide the type of policy you want to buy. However, it is always recommended to compare the coverage, terms and conditions before finalising the plan type and should not make the final decision basis the lowest premium quotation available.

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

This blog has been written by Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 7,600+ network garages, you can be assured of help in event of any damage to your vehicle.

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