All car insurance companies tell us is a figure that we have to pay on a yearly basis or at the end of a particular tenure. We are in the blind regarding how that number came into existence. This is why we should use a car insurance calculator.
A car insurance cost calculator is basically a tool that you can use to see what is the exact amount of coverage premium you should be paying. It allows you to do complex coverage premium calculations within seconds. Just input some basic details about your car and sit back to see the accurate premium figure that you have to pay for the car coverage.
How to Use a Motor Insurance Calculator
The user-friendly car insurance price calculator will require you to input certain details before it can do the calculations for you.
Reasons to Use a Car Insurance Policy Calculator
Here are some of the best reasons to use a calculating tool:
Types of Car Insurance Policies
There are two major types of car insurance policies in India, but we can broaden it to three major kinds.
Third-Party Car Insurance Policy:
This policy type is mandatory if you want to drive a four-wheeler on Indian Roads under the Motor Vehicles Act, 1988. A Third-Party (TP) car insurance policy gives you protection against legal liabilities if your vehicle is involved in an accident with a third party. In case of an accident, the insurer will compensate the third party if there is any damage caused to life, health, or property.
As getting this type of policy is a mandatory thing, it is best you use a third-party insurance premium calculator to know the exact amount you have to pay before going for a better and more comprehensive insurance policy for your car.
Comprehensive Car Insurance Policy:
This type of policy is better as it gives you wider coverage. A comprehensive policy is inclusive of third-party coverage, and it also covers any damage done to your own vehicle. It offers you wider coverage and better benefits in case of theft, accidents, damages, and collision.
Q1: How to calculate car insurance premium?
A1: While calculating your car insurance premium, take into consideration the following factors:
When you have all these details handy, feed it to a third-party car insurance premium calculator or a comprehensive insurance calculator to know the amount of premium you would have to pay.
Q2: Should I use two separate online tools for a new car insurance policy calculator and a used car insurance calculator?
A2: It is not required; you can find it all in one simple online calculator too. An insurance premium calculator takes into all the factors along with the age of the car and then computes the amount of premium you have to pay. Mostly it depends on your coverage needs and add-ons.
Q3: Why should I use a car insurance renewal premium calculator?
A3: The tenure of car insurance renewal policy might be of two types, multi-year renewal policy, and annual renewal policy. The premium calculator for car insurance renewal is an online tool that gives an instant quote so that insurance buyers can pick the plan that fits their needs and budget when their current plan comes to an end.