Owning a car in India is considered to be a symbol of status and prestige, but it is equally important to have proper car insurance in place. As per Indian law, vehicle insurance is compulsory for car owners. Besides the legal compulsion, an insurance plan also provides safety for you and your vehicle. Having an affordable vehicle insurance premium is an important factor in selecting the best vehicle insurance policy.
Coming to the question, how to calculate car insurance premium and why is it necessary? Well, car insurance calculators help estimate the cost of insurance premiums for people looking to buy a car. In this blog post, we will check out a few steps and factors that affect car insurance premium in detail.
Steps to Calculate Motor Insurance Premium
Calculating your vehicle insurance premium is easy and hassle-free. Motor insurance premium calculators, easily available on the insurance company's webpage, are an important tool. They allow you to calculate your car insurance premium and also compare different options available.
The insurance premium for used and new vehicles will vary because of IDV in vehicle insurance. Rest assured, you will be given vehicle insurance quotes from the best insurance companies according to the inputs provided. Now, let us check out how to calculate motor insurance premiums.
Gather Necessary Information
Before you understand how to calculate vehicle insurance premium, ensure you have all your vehicle details such as make and model, year, registration number etc, your personal details and any previous insurance details handy.
The premium for some vehicles will be higher than that for others. The engine cubic capacity or CC, decides on the third-party premium cover. The make and model of your vehicle are considered if you are selecting other packages or add-ons.
Visit the Insurance Provider's Website
Visit the official website of your vehicle insurance provider to learn how to calculate motor vehicle insurance premium and explore options to renew motor insurance online seamlessly.
Enter Vehicle Information
Upon accessing your vehicle insurance provider's webpage, provide your vehicle information, including make, model, year, and registration number. Every vehicle has its own cost of repair and spare parts. Motor insurance covers the cost of theft, damages, etc., but the insurance premium may vary from one vehicle to another. Basically, the higher the car cost, the higher the premium.
Input Personal and Usage Information
Once you have completed your vehicle information, provide your personal details, such as your name, age, address, and how you plan to use your vehicle for daily use, commercial purposes, or any other purpose. Most insurers consider vehicle owners under 25 likely to be involved in some kind of road accident or mishap. For this reason, individuals between 18 and 25 generally pay higher premiums than others.
Select Coverage Type
The importance of motor vehicle insurance also extends to the passengers in the vehicYou can select the type of coverage you are looking for, such as comprehensive, third-party, or own damage coverage. The type of coverage is an important factor determining the motor insurance premium. The insurance premium mainly depends on the type of plan that you select. The premium of all three coverage plans differs from each other.
Add-On Covers
Check out for add-on covers like roadside assistance, engine protection, zero depreciation, etc. The vehicle insurance premium depends on the add-ons you opt for and its base policy. But you need to remember that these benefits come at an additional cost that can increase your vehicle insurance premium. This is the best way to check out how to calculate car insurance rates online.
Calculate the Premium
Click on “Calculate,” and the calculator will show the result of your estimated vehicle premium and Insured Value.
Compare Quotes
After entering the given information, you need to click on Compare Quote. You will be directed to another page where you can select the right type of motor insurance you want. Comparing different plans allows you to find the best motor insurance that offers comprehensive coverage at an affordable price.
Finalize and Purchase
After you find the right insurance provider and its quote, finalize the deal and make your purchase online. This is how to find car insurance premium online. By following the given steps and submitting all your necessary details, you will get multiple premium quotes specifically tailored to your vehicle insurance needs. The motor insurance premium calculator online empowers you to make well-informed choices, allowing you to select the most appropriate car insurance policy at a competitive rate.
Conclusion
Overall, the car insurance premium calculator online streamlines the route of finding the right insurance quotes, offering an efficient and simplified way for users to select and explore appropriate insurance coverage like Universal Sompo, which meets their specified budget and needs. There are different factors that influence the cost of a car insurance plan. You can get the quote online by providing necessary details about your car.
FAQ
Motor insurance premiums are calculated using a base formula: Premium = (Own Damage Premium - Discounts + Add-ons + Liability Premium ) + GST. The right amount relies on the kind of car you own, its usage, and the selected policy.
You can easily pay the premiums online using your debit or credit cards, internet banking, e-wallets, or insurance apps. There is an option of offline payments which can be done at insurance company offices.
The major aspects involve the vehicle’s Insured Declared Value (IDV), age, make, and model, along with the driver’s profile, geographical location, and claim history. Extra services like zero depreciation or roadside assistance may add to the premium amount.
The IDV is the current market value of your car. It is calculated as: IDV = Ex-showroom Price – Depreciation (based on vehicle age). IDV determines the maximum claim amount in case of total loss or theft.
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