How To Calculate The Premium For TV Insurance?

Posted on: Aug 6, 2024 | 3 mins | Written by: HDFC ERGO Team

How To Calculate The Premium For TV Insurance?

Imagine you love hosting house parties, and the biggest reason people like coming to your place is your TV. Sounds funny? Well, some people possess costly television sets with the latest technology, and it’s an amazing experience they enjoy. If you are one of them, then think about what would happen if that TV gets damaged or stolen. Can your house insurance protect it or will you be relying on the warranty you have received? Or will you opt for TV insurance? Although not commonly known, TV insurance is offered by insurance companies. Let’s learn more about it and understand how to calculate the premium of the policy.

Factors Affecting TV Insurance Premium

The premium of TV insurance depends on many factors, such as –

• The type of coverage:

You can opt for an individual policy, which will cover only the risks associated with TV, or a package insurance policy, which will cover all expensive products, including TV.

• Model of your TV:

The premiums charged differ for various models, depending on the sum insured of the policy.

• Cost of the TV:

If your television is expensive, the premium will be higher because of the high cost of its parts.

• Other Factors:

The duration and coverage of the insurance plan also affect the premium.

What is a TV Insurance Premium Calculator?

A TV insurance premium calculator is an online tool that will help you get an estimate of the premium based on the policy coverage. When you provide the required details, such as the model of the TV, cost, the year of purchase, etc., the tool will provide an estimate of the premium.

How to Use a TV Insurance Premium Calculator?

It’s pretty easy and simple to use a TV insurance premium calculator. Here are the steps –

• Many insurance companies and aggregator sites offer this online calculator. You have to look for a reputed TV insurance premium calculator which will give an accurate cost.

• Provide all the information accurately, such as type of TV (i.e., LCD, LED, or Plasma), invoice value, model, age of the TV, screen size, and location. The location is sometimes required to assess the risk. For instance, if you live in a flood-prone zone or a place with a high crime rate of burglaries or thefts, the premium may be higher. Accurate information will help to get a precise estimate of the premium.

• Choose the type of coverage – basic or comprehensive.

• Once you get an estimate, compare the quotes from different insurance providers and pick the one that best suits your requirements and pocket.

How to calculate TV insurance premiums?

Calculating the premiums of TV insurance involves several factors, such as –

• Type of TV or model:

The more expensive your TV, the higher the premium will be. Similarly, the cost of repair or replacement of parts of newer models is high; hence, the insurer will charge a higher premium.

• Age of TV:

Old TVs may require frequent repairs or replacement of parts. So, the premium will be high to cover the risk.

• Location:

If you reside in areas where there is an increased risk of crime or natural calamities, the premium will be high.

• Type of coverage:

Opting for basic coverage will cost you less compared to comprehensive coverage.

• Claims history:

The premium will also be calculated based on the claim history of the policyholder.

Tips for Reducing Your TV Insurance Premium

If you want to safeguard your expensive TV but are worried about the high premium, here are some tips that can help reduce the premium:

• Take quotes from different insurers and compare them based on your needs. This will help you get the best deal.

• When you buy TV insurance online, the providers will give you a discount as they save on the operational cost and agent commission.

• When you bundle multiple insurance policies, insurers offer discounts.

• Installing security alarms and CCTV cameras at home will reduce the risk of theft; hence, the premium will be lower.

• Opting for a higher deductible will decrease your premium, but you must be financially prepared for more out-of-pocket expenses while raising a claim. The deductible is the amount you have to pay before insurance coverage kicks in.

• High-quality TVs are durable, reducing the likelihood of claims. So, the premium will be lower.

FAQs

1. What does a TV insurance cover?

TV insurance covers any damage to the electronic gadget due to fire, theft, or accidental damage when the television is being transported from one location to another. Insurance will also cover the cost of repair and replacement of TV parts in case of breakdown due to a mechanical/electrical fault.

2. Does TV insurance cover all models and brands?

Yes, TV insurance covers all models and brands.

3. What’s the premium of TV insurance?

The premium depends on many factors like: the invoice value, the model of the TV, the year of purchase, location, type of coverage, etc. It also varies from insurer to insurer, so one needs to do proper research before purchasing TV insurance.

Conclusion

Televisions have now become smart and sleek-looking, thanks to advancements in technology. The smarter the TV, the costlier it is. So, when you spend a hefty amount on buying a TV, you must also safeguard it against potential risks, such as breakdown, theft, or damage, with a comprehensive TV insurance policy. The insurer will cover the repair expenses, reducing your financial burden.

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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