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How Does a Car Insurance Premium Calculator Help?

Purchasing a car is nothing short of a dream come true! Not only does it fulfill one of your primary financial objectives, it also brings about a sense of happiness and contentment in your life. 

Even in times of such great joy, you need to make sure that every document that establishes the legal validity of your vehicle, is intact. This is precisely why you need to opt for a car insurance, possessing which has been made mandatory under the Indian Motor Vehicles Act, 1988. However, in a market that is dotted by numerous insurance companies, how do you choose a service provider who is both, affordable and competent? 

If you too have been boggled by such an issue, you must go ahead and use the services of a car insurance premium calculator

What Is A Car Insurance Premium Calculator?

A car insurance premium calculator is essentially a technique or calculator that enables you to compute the exact amount of money that you will have to pay an insurance company in order to protect your car against any internal or external damage. A premium calculator equips you to calculate your monthly, quarterly, half-yearly, or yearly installments and compare them with other insurance companies so you can get the best quotes. 

Benefits Of Using A Car Insurance Premium Calculator

Although there are a number of ways in which a car insurance online premium calculation can assist you, here are a few of its principal benefits: 

  • A car insurance premium calculator can help you undertake a detailed comparison of the various features of different insurance policies.
  • It is an effective way to save a huge amount of money as you get to buy the precise policy that aligns with the particular needs of your car.
  • As the entire system is based on mathematical algorithms, you remain free from the undue influence of insurance agents or brokers.
  • The premium calculation of an online car insurance is factual, accurate, prudent, and efficient.
  • It enables you to understand how premium rates can change with even a minor alteration in the associated variables.
  • When you have to renew car insurance, a premium calculator can help you make judicious comparisons and thus, clinch a good deal.

How Can You Use A Car Insurance Premium Calculator?

Most premium calculators are easily available on the websites of various insurance companies. As a car owner, all you have to do is: 

– Open the site of a company dealing in online car insurance. 

– Fill in the required information. This would largely include:

  • Date of registration
  • Car details
  • Policy start date
  • Date of maturity
  • Extent of coverage
  • Additional riders, if any

– Submit these details and get a premium quote. 

How Is Car Insurance Premium Calculated?

A car insurance premium is usually calculated on the basis of a multitude of variables. These variables tend to alter the premium rates in accordance with a number of factors like: 

  • Age and gender of the car owner
  • Car model and variant
  • Location in urban or rural areas
  • Year of manufacture
  • Petrol/Diesel/CNG fuel type
  • No claim bonus varying from 10-50%
  • Availability of discounts
  • Option to renew car insurance

Nonetheless, this does not mean that the rate of premium payment computed via car insurance premium calculator, should be the sole criteria for judging the efficiency of an insurance policy. Whether you purchase a car insurance online or offline, it is vital to ensure that its coverage and tenure also meet your specific needs and requirements in the most appropriate way.


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