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Factors to consider in car insurance calculator

25th Jan 2018
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As having a car insurance is mandatory in India, it is vital that you as a car owner buy an insurance that covers all your insurance requirements and protects you from any future liabilities. Due to the increasing demands for online purchase of insurance, most of the insurers now have online websites where you can buy or renew a car insurance policy online. These websites have a special tool to calculate your car insurance premium based on the data you provide for the specified parameters. This tool that they use is called a Premium Calculator.

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What is Car Insurance Premium Calculator?

Car Insurance Premium Calculator is an online calculator provided by insurers on their website for hassle-free and paperless calculation and approval of a car insurance premium. The calculator uses the data that you provide for the specified parameters to calculate and come up with the right premium amount.

Key Features and benefits of Car Insurance Premium Calculator:

Car Insurance Premium Calculator comes with really interesting features that make it every car owner’s favorite:

Compare various insurance plans before making a choice

Hassle-free and easy

Time-saving and instant calculation of insurance premium

Instant insurance approval and payment

Easily accessed from anywhere

Why is it Important to Calculate Premium Using a Car Insurance Premium Calculator?

The modern era that we live in demands everything to be easy and hassle-free, this is why we have a number of technologically advanced systems and machines that make our life easier. Car Insurance Premium Calculator is also one such technologically sophisticated program to help car owners calculate their premiums instantly.

How to Use a Car Insurance Premium Calculator?

Using a car insurance premium calculator is easy and straightforward. The calculator has a simple program interface that makes it easy for any customer to come online and use it without any assistance.

The calculator present on the web page will have a number of parameters asking for personal details, vehicle details, etc. that need to be filled in with accurate information by the consumer. Your only job is to provide relevant and accurate data against these parameters.

After you have provided all the necessary information, you need to click on the ‘calculate’ button that appears on the bottom of the web page.

As soon as you click on the button, the calculator takes all the information provided by you and starts assessing them to calculate your insurance premium. Once the insurance premium is calculated, the calculator will quote the premium on the webpage.

You will have the option to agree or disagree with the quoted premium as per your judgment. If you do agree with the quote, you will be directed to another page that may require you to fill in further details as requested by the insurer. After this, you will be redirected to the payment page where you need to pay your premium and buy the insurance.

Factors considered for Calculating Car Insurance Premium

When you buy Insurance for a new/used car:

Vehicle Details:

Vehicle owner - Individual/ organization

Insured's Declared Value (IDV)

First Registration Date/Sales Invoice Date

Effective Driving Licence

Manufacturer’s Name

Registration City

Vehicle Make and Model

Additional Coverage for Your Vehicle (Optional):

IDV for Electrical Accessories

IDV for Non-electrical Accessories

IDV for LPG/CNG kit

Personal Accident Coverage (Optional):

For paid driver

For named passengers

For unnamed passengers

Liability Coverage:

For paid driver

For employees

Personal Details:

Name

E-mail Address

Mobile Number

When you renew motor policy from the same insurer

Expiring Policy Number

When you renew motor policy from another insurer

Vehicle Details:

Vehicle owner - Individual/ organization

Insured's Declared Value (IDV)

First Registration Date/Sales Invoice Date

Effective Driving Licence

Manufacturer’s Name

Registration City

Vehicle Make and Model

Details of Previous Policy:

Policy Type - Comprehensive/Liability Only

Policy End Date

Policy Start Date

Personal Details:

Name

Mobile Number

E-mail Address

Additional Coverage for Your Vehicle (Optional):

IDV for Electrical Accessories

IDV for Non-electrical Accessories

IDV for LPG/CNG kit

Personal Accident Coverage (Optional):

For paid driver

For named passengers

For unnamed passengers

Liability Coverage:

For paid driver

For employees

Factors That Influence Your Car Insurance Premium

Car insurance premium depends on a number of variables and can vary from person to person depending on certain factors:

Geographical location

Age of the car and the driver/owner

Driving record and driving experience

Claims history

Previous insurance details if any

Manufacture, model and make of the vehicle

Car parts or car accessories fitted

Insured’s Declared Variable (IDV)

Fuel type and use of vehicle

No Claim Bonus (NCB)

*Please note that there could be slight variations in parameters used by the premium calculator depending on the insurer.

Car Insurance Premium Renewal:

Car insurance premium renewal is similar to buying a car insurance for the first time. You need to provide details for the parameters mentioned above and let the calculator do the rest. Apart from this, you also need to schedule a survey appointment with the insurance executive, this is mandate part of the renewal process. The executive comes and checks your vehicle for any pre-existing damages. You can book the appointment via the online website of the insurer. You can renew your car insurance before it expires or after an accident and claim settlement.

Tips to Reduce Car Insurance Premium:

If you are unaware of ways to reduce your insurance premium, here are few tips that might help you:

Accumulate No Claim Bonus for every claim free year

Insurers give special premium discount if you are a member of Automobile Association of India (AAI)

Installing safety devices like anti-theft device, a navigation device, etc.

Don’t buy expensive vehicle if you want low insurance premiums because higher the price of vehicle, higher would be the premium

Don’t add any riders to your base policy unless it’s absolutely necessary

Opt for voluntary deductibles when you buy the car insurance

What is Cashless Car insurance policy?

Most companies today offer cashless transactions with the insurance policy. As the name suggests, if the policyholder needs emergency car service or he/she has been in an accident, they do not have to pay money either in the hospital or in the garage to avail the facility. Every insurance company will have a network with garages and hospitals across the country in various locations, where they can send help to policyholder’s location. These officials will take care of all the repair work or medical facilities without the policyholder having to pay a penny.  

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