Car insurance premium calculator
A car insurance premium calculator helps policyholders to calculate their car insurance premiums. It is an online calculator where policyholders can calculate the premiums for their car insurance policies and also buy the policy online. The calculator works on the details which are provided by the policyholder regarding the car. Once the details are entered the calculator calculates the actual premium rate of the car insurance policy. These calculators are offered by insurance companies selling car insurance policies, online brokers and online insurance aggregators. While insurance companies provide the calculator for their own policy, calculators of online brokers and aggregators calculate the premiums of different car insurance policies at once.
Essential components of a car insurance policy premium
The premium of a car insurance policy is calculated taking into consideration the coverage offered. There are three types of coverages and these constitute the components of a car insurance policy’s premium. Here they are –
- Third party liability premium
The first and the most important premium component is the third party liability premium. This premium rate is fixed across all insurance companies and is determined by the Insurance Regulatory and Development Authority of India (IRDAI). Coverage under this segment is provided for liabilities faced when injuring any third party or damaging third party property.
- Own damage premium
Own damage refers to the coverage available under comprehensive car insurance plans where damages suffered by the car itself are also covered. Coverage is allowed for the car’s damages due to natural or man-made disasters. Since the scope of cover under this segment is wide, the premium is higher compared to third party liability premium.
- Personal accident premium
Personal accident cover is also found inbuilt under most car insurance plans. This covers accidental deaths and permanent disablements. An additional premium is charged for this cover and the premium rate is the lowest among all other components.
- Add-on premiums
If any add-ons are selected, additional premiums are charged for them as well.
Benefits of car insurance premium calculator
A car insurance premium calculator is a very effective tool because of the various benefits which it provides. Here are some of the benefits of using the calculator –
- The calculator calculates the expected premium rate beforehand. It, therefore, provides the policyholder the exact idea of how much the car insurance policy would cost. The policyholder can then arrange the funds for buying the policy
- The calculator is flexible and allows the policyholder to make changes to the calculated premium. The policyholder can choose to add or remove add-ons, avail discounts and use the accumulated no claim bonus to manipulate the premium calculated by the car insurance premium calculator
- If the online calculator of online brokers or insurance aggregators is used for premium calculations, premiums of different policies are calculated simultaneously. These premiums are displayed and the policyholder can compare the premiums of different policies. This comparison helps the policyholder to buy the best car insurance plan.
Factors that influence your car insurance premium
The car insurance premium calculated by the calculator depends on a lot of factors which, when changed, change the premium rates too. Here are the factors on which the car insurance premiums depend –
- The make, model and the variant of the car which is being insured
- The type of policy which is being taken – third party liability or comprehensive
- The add-ons which are selected with the policy. Each add-on has a separate additional premium
- The year of registration of the car
- The Insured Declared Value of the car
- The place of registration of the car whether it is a metro city or a non-metro one
- The no claim bonus accumulated in the previous policy years
- The available discounts under the plan
- The fuel variant of the car
- Voluntary excess, if selected
- Age, marital status and gender of the policyholder
- Any modifications done to the car
Required details for calculating car insurance premium
The car insurance premium calculator uses various details to calculate the applicable car insurance premium rate. The details which are required for premium calculation include the following –
- The type of the car which is being insured
- The type of policy which the policyholder wants to buy
- The year of registration of the car which determines the age of the car and its Insured Declared Value
- Place where the car has been registered
- Details of an existing policy if the policy is being renewed or if the car is a used car
- Any applicable discounts which are relevant to the car
- The add-ons which the policyholder wants to select