Car Insurance Calculator – Know How to Use

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6 min read

Updated on Jul 13, 2022

What is Car Insurance Premium Calculator?

A car insurance calculator can be described as a web-based tool which you can use to calculate and get an estimate of the premium which you would have to pay to buy a particular car insurance plan. Thus, it provides you with a proper idea of the premium that you have to pay for various policies and thus choose the one that suits you the best from the options that you have in this regard. This way you do not have to overshoot your budget as well. Some details have to be provided to operate such a tool. They are mostly various details of the car being insured such as its age, fuel type, and make & model.

So, as we have said already, by using these tools you would be able to get an idea of the new car insurance price that you would have to pay if you have to insure a new car. You can easily use these tools to compare the various options that you have and determine how good they are in terms of being within your budget apart from satisfying the requirements that you have from such a policy. Since these are free tools just about everyone can use them.

Read More: Total Loss in Car Insurance Explained

Ways of using car insurance calculators

You need to follow some steps to use these tools and get a car insurance price list of sorts. For starters, you have to choose the various details of your car such as its make & model, fuel type, brand, and variant. After that, you need to choose the location where you have registered your car. Following this, you need to select the year you bought your car. After that, you have to provide details of claims that you have made in the preceding year. If there is no claim against your name you should specify as much.

After you have provided all these details you would have to feed some personal details such as your name and mobile number to the tool that you are using. This way, you can also get an idea of the car insurance renewal price. After this, you would get an OTP (one-time password) at the mobile number that you have provided. You would have to provide said OTP and get the quotes that you are getting from various service providers.

How do the insurance calculators benefit you?

There are so many ways in which these tools can help you.

They can provide you with a car insurance price list in India. When you use such a tool before buying car insurance you make the process of doing so incredibly convenient. You can compare all the quotes and premium rates that you get from these tools and find out the best option for your requirement. You can see how the different factors are influencing the premium that you have to pay on a policy. With these tools, there is also no need for you to act under the influence of agents when it comes to choosing such a policy.

One of the biggest benefits of using car insurance calculators is that you can get a car insurance price list that provides you with a good idea of the market as such.

How are car insurance premiums calculated?

You can always use a car insurance premium calculator to find out how much you would have to pay for a certain policy. However, it is also important that you know the formula that is used in these cases. By knowing the formula you would have a better idea of the way your car insurance premium is being calculated. The formula may be enumerated as below:

Premium = own damage premium – (no claim bonus + discounts) + liability premium.

In these cases, it is the IRDAI (Insurance Regulatory and Development Authority of India) that determines the liability premium that you are supposed to pay on these policies.

Read More: Find Car Insurance Details by Registration Number?

The factors that determine how much premium you pay on these policies 

The most important factors that play a role in determining the premium that you have to pay for insuring your car may be enumerated as below:

  • gender and age
  • make, variant, and model of the car that is being insured
  • the location where you are trying to insure your car
  • the type of fuel being used in the car
  • the year when the car was made
  • the discounts that you are eligible for
  • voluntary access
  • anti-theft discount
  • no claim bonus

The details that you need to provide to calculate the premium for insuring your car 

Please remember that the car insurance renewal price might differ based on the age of your car. In this case, it is also important to know the details that you have to offer in this context. The following details are necessary for this particular context:

  • registration number of car
  • name of RTO (regional transport office)
  • the year when the car was registered
  • variant of car
  • manufacturer of car
  • type of fuel being used

How you can reduce your car insurance premium 

It is common knowledge that the premiums rates applied to these policies tend to vary based on several factors such as the type of coverage that you have chosen. You can always use a car insurance calculator and find out how these different factors affect the premium that you pay to insure your car. There are several factors however that you need to keep in mind if you want to pay a lower premium for insuring your car.

You should always try buying your car insurance on the internet. Try not to raise small claims that you can manage on your own. If you are moving to a new policy transfer the no-claim bonus that you had obtained from the previous policy. Always renew your car insurance policy at the right time. Make sure that you do not modify your car during a coverage period. You can always use these car insurance calculators and find out how much your new car insurance price would come to if you followed these suggestions.

Also Read: Check Car Insurance Status Online on Parivahan Sewa/ RTO?

FAQs: Car Insurance Calculator and It’s Features

Q: Why do you need a car insurance?
You need a car insurance to protect you and your vehicle from any unforeseen events, accidents and unplanned liabilities.

Q: What is Car Insurance Premium Calculator?
A car insurance premium calculator is an online tool that helps a potential car insurance buyer to get an estimate of the premium amount that he/she will be required to pay for a particular car insurance plan.

Q: When do you need to get a car insurance cost estimate?
You need a car insurance cost estimate to know the actual premium that you would have to pay for buying different car insurance plans. This way, you can easily pick the best plan within your budget. You can simply submit the details of your car, – age, make & model, fuel type, etc.- and calculate the premium amount easily.

Q: What coverage should you consider for your car?
Below are the coverage that you should consider:

  • Liability coverage
  • Collision coverage
  • Personal injury coverage
  • Uninsured motorist protection
  • Comprehensive coverage
  • Add-Ons/Riders

Q: How can one lower their car insurance premium?
To lower your car insurance premium:

  • You can raise your deductible component.
  • Don’t Claim Small Sums and try obtain no claim bonus for claim free years.
  • Don’t forget to transfer your bonus if you buy a new policy.
  • Compare Premiums online
  • Install anti-theft tools to protect your car and to reduce premium amount.

Q: What are the cheapest car insurance companies in India?

Some of the cost-effective car insurance companies in India are:

  • Digit General Insurance
  • Royal Sundaram General Insurance
  • Bharti AXA General Insurance
  • Liberty General Insurance etc.
  • Iffco Tokio General Insurance.
  • The Oriental Insurance Company.
  • HDFC Ergo General Insurance.
  • Universal Sompo General Insurance.
Feb 23, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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