A four-wheeler insurance premium is the price you pay to get insurance coverage. While you seek extensive coverage, the premium cost of such a car insurance policy might be too high.
But how would you know if a car insurance policy is affordable? A car insurance premium calculator can help. Let’s see how it works.
What is a Car Insurance Premium Calculator
Car insurance premium rates vary significantly based on different factors. Hence, a particular car insurance for the same car may have different premiums. Likewise, premiums for different cars of a single owner may also differ. Most insurers provide a car premium calculator online.
With a car insurance premium calculator, you get personalised and quick quotes from a specific insurance company. Simply put, it helps you determine the premium amount you would be required to pay for your policy.
How to Use an Online Car Insurance Calculator
- Firstly, fill in all the details of your car, such as the model, variant, age, city, and registration date. All the details should be valid to ensure complete accuracy.
- After filling in all the necessary information, click the “Get Quote” option. You will be directed to the page which allows you to select the type of car insurance you want.
- You can either purchase basic third-party car insurance or a comprehensive policy. Also, if you opt for a comprehensive car insurance policy, you get an option to include add-ons.
- If you are changing insurers, fill in the details of your previous four-wheeler insurance, such as the expiry date of the previous car policy, the NCB earned, the mode of the claim, and more.
- After filling in all the details, you can see the premium rates of your four-wheeler insurance.
Benefits of a New Car Insurance Premium Calculator
- The car premium calculator can help you determine the right policy per your budget.
- A car insurance premium calculator is an efficient and easy way to compare the premiums of various policies.
- The car premium calculator can help you understand the different aspects of the price of your insurance policy.
- It eliminates the need for a middleman and helps you save a significant amount on your car insurance policy premium.
Factors Affecting Car Insurance Premium
No Claim Bonus (NCB)
You get this benefit for not filing a claim during a policy tenure. Under the No Claim Bonus, you will get a discount on the car insurance premium paid at the time of the policy renewal.
Car’s Age
Insurance premiums for older cars are usually cheaper than the newer ones. This is because older four-wheelers lose their valuation due to depreciation, and their IDV (Insured Declared Value) is substantially lower than that of new four-wheelers.
Make and Model
Four-wheelers equipped with high-end accessories are more expensive to insure. As such, accessories and technologies are expensive and difficult to come by, and insuring them can be a significant investment.
Location
Policy premiums are higher in metropolitan areas than in other areas. This is because traffic density and the risk of accidents are higher in such areas.
To Wrap It Up
An online car insurance calculator is the most effective tool to determine your car insurance premiums. This tool is highly recommended as it lets you know the insurance premium amount beforehand and helps you make an informed decision.
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