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What is a Car Insurance Premium Calculator?
A car insurance premium calculator can help you figure out how much a car insurance policy will cost you. This digital tool enables you to compare different insurance policies offered by various insurers. Just enter a few details about your car and calculate the premium for Shriram car insurance policy in a single click.
How To Use a Car Insurance Premium Calculator?
Benefits of Using A Car Insurance Premium Calculator
Suitable Premium Plans: The main aim of buying an insurance policy is to get the best coverage at the most affordable premium. The premium calculator helps you to select the best plan according to your needs with premiums that suit your pockets.
Best IDV- IDV value helps to determine the correct compensation amount for your vehicle, it is essentially the market value of your car which serves as the claim settlement amount in the event of theft or total loss of the vehicle. The premium calculator calculates the correct IDV for your car depending on its make, model, and age. Know more about IDV.
Choose a Cost-Effective Plan: When you use the premium calculator to get quotes from top insurers for your car insurance, you can choose the most cost-effective plan based on your budget and needs. It allows you to get a fantastic deal. With Quickinsure, this process is easier. Our experts can assist you in selecting the best plan for your needs.
Cost of Add-on Covers: Add-ons help to enhance your policy coverage. Selecting the right set of add-ons helps you get added benefits. The premium calculator helps to analyze how the selection of different add-ons willaffect the premium amount.
Anti-Theft Equipment: Anti-theft devices in your car reduce the chances of your car being stolen. This reduces the insurer’s liability. So, if you have installed anti-theft devices certified by the Automotive Research Association of India (ARAI), you are eligible for a discount on your premiums.
Voluntary Deductibles: Deductibles are the amount paid by the policyholder when making a claim.Increasing your deductibles or opting for voluntary deductibles can help you save money on vehicle insurance. If your deductible is zero, your insurer will cover the entire claim amount in the event of an accident, but your premium will be higher. The higher your deductible, the lower your insurance cost will be. If you are confident in your driving abilities or do not drive regularly, a higher deductible may be a smart option for lowering your premiums.
Upgrades and Modifications: If any alterations are done to your car, be it installing a CNG kit or an electronic device, your insurance premium is affected. You need to intimate the insurer about such an alteration as if you don’t inform, your claim may be rejected later. Any modification that increases the risk raises the insurance premium. For example, any change to the engine/mechanics to increase power/ acceleration raises the risk and raisesthepremium.
Avoid Small Claims:Avoid making claims for minor damages like scratches, dents and other small damages as you will lose your No Claim Bonus. NCB is a reward that the policyholder gets for each claim-free year. Know more about NCB.
Factors That Affect Your Car Insurance Premium
Location:In a big city like Mumbai or Delhi, for example, rising traffic, congested roads, and other factors are common causes of accidents.Insuring a car in a tier 1 city will be more expensive than in a tier 3 city.
Depreciation: Depreciation is the gradual loss of an asset's value due to normal wear and tear over time. As the car grows older, it’s value decreases and thus premium also decreases.
IDV: IDV is the current market value of the car. The value decreases every year due to depreciation. The older the car, the less the value of the car. This means that insuring an old vehicle will be less expensive than insuring a new vehicle.
Model:Premiums towards insuring luxury cars are higher compared to budget cars. This is due to the higher cost of repairing or replacing parts in luxury or high-end vehicles. As a result, car insurance premiums for luxury or high-end vehicles are higher.
Frequently Asked Questions
1. What is depreciation in car insurance? How does depreciation affect the premium?
Depreciation is the gradual loss of an asset's value due to normal wear and tear over time. As the car grows older, its value decreases and thus premium also decreases.
2. How is the policy premium determined?
The Insured Declared Value (IDV), RTO location of the Car, age of the car, modifications, No Claim Bonus (NCB), anti-theft devices, engine's cubic capacity, add-on coverage, age of the owner, and other factors all impact the pricing for a car insurance policy.
3. When is the ideal time to renew your automobile insurance policy?
It is always a good idea to renew your car insurance policy at least 45 days before the expiration of your two-wheeler insurance policy. This is because if your insurance plan expires, you may lose all of your previously accumulated insurance benefits.
4. How is the IDV calculated for new vehicles?
When you buy a new vehicle and insure it, the IDV is computed based on the car's ex-showroom price.