How to Use a Car Insurance Premium Calculator?

As per the Indian Motor Vehicles Act, it is mandatory to have car insurance in India. So, every car owner is required to buy a car insurance policy as it offers protection against any untoward perils while driving. However, the premium for a car insurance policy may vary from one insurance provider to another for the same coverage. If you want to get the best deal for your car insurance policy then you can try using an online car insurance premium calculator to get a quick and customized quotation from a specific company.

Most of the motor insurance providers such as Cholamandalam Car InsuranceRoyal Sundaram Car Insurance etc. provide a premium calculator online. By using this calculator, you can select the best car insurance quotes online. It will also help in determining the premium amount that you would be required to pay for your insurance policy.​ 

What is Actually a Car Insurance Premium Calculator?

It is a dynamic tool provided that car insurance companies provide to their customers. Almost every vehicle insurance company provides an online premium calculator on their website.

Using a car insurance premium calculator you can get a quotation for your car insurance policy and the amount of premium you are required to pay.

The steps that follow are as follows:

  • Visit the official site of the insurer and go to the car insurance calculator page
  • Provide some basic information like your name, address, contact details etc.
  • Also provide your car details such as car make and model, car manufacturer’s name, registration date, manufacturing year, fuel type etc.
  • Some insurance companies also provide an option to get insurance cover for your car accessories
  • Once all the necessary details are provided, simply click on the calculate premium button and get your car insurance quotation immediately
  • Once this step is completed you can check further information and make the payment online. 

The procedure may vary from one insurer to another. For instance, the process for Tata AIG Car Insurance will vary from HDFC Car Insurance and other insurance providers. 

What are the Benefits of a Car Insurance Calculator?

Now that you know what an online car insurance premium calculator is, let’s see how beneficial it is to use it-

  • It is easier to evaluate your car insurance needs and makes it easier for you to find a policy that covers all your car insurance requirements
  • It is a time-saving and effective method to compare the cost of the premium for various plans with different features
  • It eliminates pressure that third-party broker or agents create and you can easily select a plan in an unbiased manner
  • Using an online car insurance calculator, you can derive the accurate premium amount you will be paying for a particular car insurance policy
  • You can also analyze the variation in the premium cost with a change in variables such as add-on benefits and other features opted by you​​

How to Use Car Insurance Premium Calculator?

It is quite simple to use an online vehicle insurance calculator. It requires some basic details such as your car make and model, its date of manufacture and registration details among others. However, there are various other factors that affect the value of your car insurance premium:

  1. Insured Declared Value of the Car– It is one of the most important factors that affect the cost of your car insurance premium. IDV is equal to the sum insured amount for your car that is finalized by the insurance company. Simply put, it the current market value of your car and your compensation will be based on the IDV.
  2. No Claim Bonus (NCB) or No Claim Discount- If your insurer provides you NCB for maintaining a claim-free record then you can save up to 50 percent on the premium.
  3. Cubic Capacity (CC) of the Car– Cubic capacity of a car is the engine power and it is directly related to your car insurance premium.
  4. Additional Discounts– You can avail further discounts by installing an anti-theft device in your car. You can avail further discounts if you are a member of the Automobile Association of India.
  5. Car Accessories– The cost of premium will be more if there are any modifications or accessories installed in your car.

How to Select a Policy When Using a Car Insurance Premium Calculator?

Be it for new cars or old cars, or private and commercial vehicles, the process to buy car insurance online using an online calculator tool is as follows-

  • Check it Online– Buying a car insurance policy online is the most effective and time-saving methods.
  • Compare it Online on the Aggregator’s Site – Start by comparing different car insurance policies online and then calculate the premium using an online calculator. After comparing the premium prices from different insurers you can easily pick the most suitable one.
  • Calling the Insurance Agents– Once you have zeroed down on a few insurers, you can seek advice from experts over a call. Once all your doubts are cleared, you can make the payment online and your policy will be issued instantly.

Things to Remember

  • It is recommended that you file a car insurance claim for major damages only. Any damage that is lesser than 10,000 rupees can be paid from your own pocket. Because filing a small claim can invalidate your No-claim-discount that ranges easily between 20 and 50 percent.
  • Timely renewal of your car insurance policy would reflect positively at the time of car insurance premium calculation.
  • Also, compare the difference in premium while opting for add-on covers.
  • Going with the same insurance provider increases the chances of discounts at the time of policy renewal.
  • Find a policy that will offer adequate coverage as per your car make and model. There are different insurance companies and some will provide better coverage for basic models, while some will provide better plans for luxury cars. And the cost of premium may vary due to such reasons.

Undoubtedly car insurance calculator is one of the fastest methods to buy a car insurance policy by simply providing your car registration number. If you have all the information available at your fingertips, you can find the most affordable and best car insurance policy online in a matter of few clicks.

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