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What, Why and How of a Car Insurance Premium Calculator

What, Why and How of a Car Insurance Premium Calculator

Whether you are buying a car, or buying an insurance policy for your car, its cost matters. Wouldn’t it be ideal to know exactly how car insurance is calculated? This way, you can arrive at a car insurance quote that is low-priced but does not compromise on the insurance cover offered. A car insurance calculator can help you to figure out your best-suited car insurance policy. Read ahead to know what, why, and how of a car insurance calculator.

What is a car insurance premium calculator?

Just as a normal calculator helps you with mathematical equations, a car insurance premium calculator helps you to arrive at a car insurance quote. It can be considered as a simple widget or that asks you to fill basic details, works on the information provided, and displays a quote. Its advantage is that you can try different combinations of the details entered to arrive at an ideal quote.

Previously, car insurance companies use to have a dedicated page to calculate car insurance premium. However, digital-first insurance companies have embedded this calculator in their purchase journey itself. You can not only view your car insurance quote in just a few clicks but also go ahead and purchase it then and there without wasting any time.

Why use a car insurance calculator?

Apart from helping you calculate car insurance premium; the calculator also helps you ensure that you are purchasing a low-priced policy. Most car insurance providers have a calculator on their website. You can simply check the quotes offered by various insurance companies for the insurance cover you need and purchase a low-priced one. However, ensure to compare by keeping the coverage constant. After all, what is the use of a low-priced car insurance policy if it doesn’t offer enough coverage?

How to use a car insurance calculator?

The calculator will ask you to insert personal and car-related details to offer you a quote. Mentioned below are the factors that affect a car insurance quote.

  • Cubic capacity of the car’s engine
  • Car’s fuel type
  • Age of the car
  • Location where the car is driven on a regular basis
  • Claim history
  • Previous policy’s expiry date
  • Deductibles – compulsory or voluntary
  • Installed anti-theft devices in the car
  • Add-on covers
  • Insurance company from where the policy is purchased

This list comprises of some fixed parameters and some variables. For example, the car’s age is fixed whereas anti-theft devices are variables. You can play around with the variables a bit and then decide your car insurance cover. For example, if you choose only one Add-on, your premium will be lower as compared to choosing three.

Buy Car Insurance Online

After you have selected your best-suited coverage at a preferred price, all you need to do is make the payment using your debit card, credit card, online wallet or internet banking. Your car’s insurance policy will arrive in your inbox instantly after making the payment.

Advantages of buying car insurance online:

  • Quick purchase process
  • No documentation
  •    Immediate receipt of policy
  • No middleman
  • Low-priced policy
  • Can be purchased from anywhere at anytime

Insurance Regulatory and Development Authority of India (IRDAI) is the apex body when it comes to insurance in India. Remember to purchase car insurance from an IRDAI-certified online insurer. The insurer’s website should mention their IRDAI registration number.

Also, make an informed choice when it comes to purchasing a policy. You can read informative blogs, check videos and view infographics to know more about a particular feature of the policy. Get in touch with the insurance company on either call or email to get all your doubts clarified before purchasing a car insurance policy.

About Emma Gilbert

Working in the marketing industry since 2002. This blog is one of my hobbies.

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