The car insurance premium calculator lets you calculate your vehicle/car premium cost online. Also, you can customize your vehicle’s Insured Declared Value (IDV) and learn how various factors impact your insurance costs.
If you have no idea how the calculation works, read this article to calculate vehicle/car insurance premium online calculator.
What is a Vehicle Car Insurance Premium Calculator?
The car insurance premium calculator is an online tool provided by the insurance company. A premium calculator is available on the official websites of almost all reputable motor insurance companies.
Using the car insurance calculator, you can figure out how much you need to pay for your car insurance policy and premium.
To use the car insurance calculator, merely enter some basic information about yourself, including the policyholder’s name, contact information, and address, followed by some standard details about the vehicle you’re insured for.
In addition to these details, the car manufacturer’s name, model number, year of manufacture, car subtype, fuel type, and registration date are all required to calculate. However, several companies also offer the option of installing the accessories inside your vehicle.
After that, simply click on the “calculate premium” button and the quote will appear immediately. So, you can make a payment to buy the car insurance of your choice.
How to calculate vehicle car insurance premium online calculator?
The following formula will help you better understand how car insurance premiums are calculated.
Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium + Cost of Add-ons
How to Use a Car Insurance Calculator Online?
The car insurance calculator helps you calculate the premium online and compare policies from different insurance companies. Using this option, you can evaluate the options available and narrow down on the plan that meets your needs.
Premium Calculation for Used and New Cars
A car insurance company calculates its premium according to its own set of parameters. The following factors are generally taken into account by most insurers.
Premium calculator for used cars
The online car insurance calculator helps you find the best auto insurance policy for your vehicle transparently and conveniently.
Using the used car insurance calculator tool, you can calculate the premium for your vehicle in just a few seconds.
Here are the details you will need to provide to calculate the used car premium:
- Type of car
- Fuel type
- Details regarding the change in ownership
- Claims for previous years, if applicable
- Details of the existing car insurance policy
- Registration number of the car
Premium calculator for new cars
Using the new car insurance calculator tool, you can compare the top car insurance companies and their policies in a few easy steps.
A new car owner can use it to narrow down the best auto insurance policy for their needs.
To calculate the premium for an insurance policy for a new car, you would need to provide the following details:
- The name of the car manufacturer
- Personal details of the owner-driver
- The model of the vehicle
- Year of manufacture
- State of registration of the vehicle
Benefits of a Car Insurance Premium Calculator
Car insurance premium calculators are easy to use and produce quick results.
By using it, you can benefit from hassle-free and paperless policy purchases from the comfort of your home.
One of the key advantages of using a car insurance calculator tool is that you won’t be influenced by insurance agents.
Moreover, you can adjust the variables in the calculator tool to see how the premium changes. And, this tool helps you understand the nuances of the plan when buying the policy so you can make the right decision.
Factors Affecting Car Insurance Premium
There are several factors that affect vehicle/car premium insurance, so take a look at the following elements before you finalize your plan,
Type of Policy
It is important to remember that the type of policy you choose will affect the premium you pay for your car. Comprehensive insurance provides more coverage than third-party plans, so it is more expensive.
How Old is Your Vehicle?
Older vehicles have less value than new ones, so insurance rates for old vehicles are lower than those for new ones.
The Vehicle’s MMV
MMV refers to the make, model, and variant of your four-wheeler. Your vehicle’s or car’s value is determined by these three factors, which affect the premium price as well.
The more coverage a policy offers, the more it will cost. Depending on your needs, you can select as many add-ons as you wish.
Tenure of Policy
According to recent guidelines, you can insure your car for 3 years. A longer tenure requires you to pay the premium in a lump sum, which may appear more expensive.
Due to the higher cost of diesel vehicles, insurance coverage for a diesel vehicle is more expensive.
In a metropolitan city, roads are much more congested, which increases the probability of an accident. Therefore, the premium rate in a metro city is higher than in a Tier-II or Tier-III city.
A deductible is an amount that you pay yourself as part of a claim. To lower your car insurance premium, choose a higher deductible one. By adjusting the deductible value, you can bring the premium to a level within your budget.