Best Way to Calculate Car Insurance Premium Online

Nowadays, buying a car insurance has become much easier as you can buy and renew car insurance online in India. The process is easy and can be executed without the need for brokers or agents, cash transactions or hard copies of the documents. You do not even need to step out of your home at all. For the online method, you just need to find some relaxed time with your smartphone, browse through the various plans offered by different insurers, compare policies, choose the one you like, pay the premium and voila, it’s done!

While comparing policies, you must use the online car insurance calculator to gain an idea about the premium amount for each shortlisted policy. Check out some of the benefits of calculating the premium amount beforehand.

Car insurance calculator and its benefits

Car insurance premium varies from car to car, based on its make, model, age, location and several other factors. A car insurance calculator is an online tool for finding the car insurance premium specific to the car in question. It is available on the websites of insurance companies and aggregator websites that provide details of several insurers on the same page. The calculator would help you in the following ways:

  • It saves time as the premium is calculated instantly.
  • It can compare the car insurance premium rates and discounts offered by different insurers, and you can select the plan most suitable according to your need and budget.
  • It is an easy and flexible process without any time constraint and does not involve any agent who might try to influence your decision.
  • Since you know the total premium, you can select the required add-on covers also.
  • With the calculator, you can adjust the important components of car insurance, such as deductibles and the IDV (Insured Declared Value) that affect the premium. You can increase or decrease the variables to get the best price.
  • You just have to enter your car’s registration no., make, model, year of purchase, RTO location and your contact details to get the premium amount.
  • It calculates the exact value of the car insurance premium after considering the taxes and charges, so you know the amount that you have to pay.
  • Once you are sure of which plan you want to buy, make the payment online, and the policy will be issued instantly.

How to calculate the car insurance premium?

The details that you must enter for the premium calculation depend on the type of policy you are opting for. For a third-party policy, the premium is fixed by the IRDAI (Insurance Regulatory and Development Authority of India). The premiums for own-damage and comprehensive plans are determined by the insurance companies; the premiums, coverage and terms and conditions vary among the insurers.

Certain factors that influence the premium are:

  • Age of the car

Insurance premium depends on the value of the asset. As a car’s value depreciates over time as it ages, so does the premium needed to insure it.

  • Fuel type

Usually, the premium for CNG (Compressed Natural Gas) cars is higher than the premium of regular petrol/diesel cars.

  • Location

Areas with a higher traffic density, such as metro cities and urban areas would have a higher premium than rural areas.

  • IDV (Insured Declared Value)

It is the maximum amount of sum insured that your insurer would pay you for car theft or damage beyond repair. IDV is the current market value and affects the own damage component. With ageing, the IDV goes down.

  • Cubic capacity

The car’s cubic capacity affects the premium for own damage.

  • No Claim Bonus (NCB)

You can earn no claim bonus for every claim-free year. This would act as a discount on the renewal premium.

The calculator is the best and convenient way to find out the premium of your car insurance online in India. You can decide independently about what covers you require and customise the plan according to your choice.